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Author Topic: What is an ETF?  (Read 989 times)
Schuyler
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February 27, 2017, 04:52:10 PM
 #21

Hi,

I keep reading about the possible ETF SEC approval, but could anyone explain to me what it means? It means exchange traded fund, but there already are bitcoin exchanges in the US right? I'm confused.
ETFs are traded on stock exchanges, they can be bought and sold at any time during the day. Their price will fluctuate from moment to moment, just like any other stock's price, and an investor will need a broker in order to purchase them, which means that he/she will have to pay a commission.
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February 27, 2017, 05:13:31 PM
 #22

Hi,

I keep reading about the possible ETF SEC approval, but could anyone explain to me what it means? It means exchange traded fund, but there already are bitcoin exchanges in the US right? I'm confused.
An ETF in this context would trade Bitcoin back and forth and use multiple methods such as shorting, on top of going long, to build investment wealth for the ETF and the people who invest in it.

Think of it like a fund that trades Bitcoin for you, so you put in $100 and, if they make 5%, you get close-ish to 5% on your investment, making you now have somewhere close to $105, after fees are taken of course.

Typically they outpace inflation and are actually pretty good, but a lot of variables can affect profitability.
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