What is the difference between a Bitcoin ETF and a traditional ETF?

An instrument that would enable investors to purchase and sell fund shares is a bitcoin exchange-traded fund (ETF). An investment fund that is traded on an exchange similarly to stocks is called a typical ETF.

The primary distinction between these two investment kinds is how a bitcoin ETF is packaged, which isn't like how a standard ETF is. All of the companies in the index are owned by the fund management since a typical ETF has the same holdings as its underlying index.

As opposed to this, a bitcoin ETF lets you buy fractional shares in one or more underlying asset categories; for instance, one share may be worth 0.1% of your whole investment. You may consider it as follows: If you put $100 in an index fund, you may be the owner of one share. However, you would have to buy one more share for every $10 that you want to spend on shares, if you wanted to buy another share for $10 (or any other multiple).