Spot ETF (Exchange-Traded Fund)đȘđȘ
Spot ETF (Exchange-Traded Fund) is an investment fund that tracks the price of an underlying asset, such as a commodity, currency, or cryptocurrency, and can be traded on a stock exchange like individual stocks. Here are some key characteristics of Spot ETFs:
1. *Tracks spot price*: Spot ETFs aim to replicate the spot price of the underlying asset, allowing investors to gain exposure to its price movements.
2. *Traded on an exchange*: Spot ETFs are listed on a stock exchange, making it easy to buy and sell them through a brokerage account.
3. *Flexibility*: Spot ETFs offer investors the flexibility to trade throughout the day, unlike mutual funds which only trade at the end of the day.
4. *Transparency*: Spot ETFs disclose their holdings daily, so investors can see exactly what they own.
5. *Liquidity*: Spot ETFs typically have high liquidity, making it easy to buy and sell shares.
6. *No futures or options*: Spot ETFs do not use futures or options contracts, which can reduce complexity and costs.
7. *Physical settlement*: Spot ETFs typically use physical settlement, meaning the underlying asset is delivered upon expiration.
Spot ETFs are popular among investors who want to gain exposure to various assets without directly holding them. They offer a convenient and flexible way to invest in a range of assets, including cryptocurrencies like Bitcoin.
