ETF stands for "Exchange Traded Funds" and refers to investment trusts that are listed on the stock market and traded at market value. With
traditional investment trusts, the price is calculated after the day’s trading closes, and a single daily price serves as the benchmark; whether a trade was successful on that day cannot be determined until the closing price is released.
In contrast, since the investment fund itself is listed, the price fluctuates constantly during trading hours based on supply and demand. This allows not only market orders but also limit orders, which enable buying and selling at a desired price.
Fundamentally, mutual funds consist of various assets such as stocks, bonds, deposits, and foreign currencies, and their price is determined by dividing the total market value by the number of shares. A
Bitcoin ETF is an exchange-traded fund that incorporates Bitcoin, which fluctuates in value, into the ETF.
In other words, Bitcoin’s price movements will play a role in the ETF’s price movements.While the extent of this influence
varies depending on the proportion of Bitcoin included, unlike direct Bitcoin trading, an ETF that also includes other stocks, bonds, foreign currencies, and other cryptocurrencies offers the advantage of enabling balanced asset management that is not solely dependent on Bitcoin’s price movements.
