Understanding Cryptocurrency ETFs | Investopedia

Exchange-traded funds (ETFs) are among the hottest modes of investment today, with investors pouring trillions of dollars into an ever-growing field of funds. Particularly in comparison with high-fee hedge funds (many of which have failed to live up to expectations on returns in recent years), low-fee ETFs provide a safer, more stable means of investing that has proven enticing for many investors. One of the wonderful things about ETFs is that they are infinitely broad in scope and focus; investors can use ETFs to participate (by proxy) in markets ranging from energy to marijuana. So why haven’t cryptocurrency-based ETFs taken off so far?

Cryptocurrencies have been another of the hottest trends in the investment world in the past couple of years. Following the lead of breakout stars like bitcoin and ethereum, digital tokens have proliferated at an astonishing pace. Some of the most successful cryptocurrencies have seen outlandish gains. However, the industry is full of…