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What is a cryptocurrency ETF and how does it work? By Cointelegraph



What is a cryptocurrency ETF and how does it work?

Exchange-traded funds (ETFs) have grown in popularity as a means of investing since the mid-1990s due to their intraday liquidity and low transaction costs. In general, ETFs track a specific index and are generally traded on exchanges.

In a securities market, ETFs allow investors to trade their shares continuously throughout the trading day, unlike mutual funds, which only permit investors to purchase or redeem shares at the close of the trading day.

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