For real though, what's an ETF ?
#RealTalk
Discussion
Wikipedia isn’t a bad resource for this question.
Cant tell if your taking the piss.
Cant tell if you are!
“An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges.[1][2][3] ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. Many ETFs provide some level of diversification compared to owning an individual stock.”
This guy just summed up all this bullshit in one sentence. I can't get on Wikipedia.
Lmao!
It’s a fiat cuck pool Ponzi scheme
It’s a financial instrument that’s designed to replicate the performance of an asset (for example bitcoin). You can have the performance of the asset without having to hold it.
Does anyone own any of it then?
Yes and no, the asset manager (for example. Blackrock) will either have the own the asset (buy bitcoin) or if he don’t wanna do that, he can buy a swap (another financial instrument that allows you to swap the performance of a asset A with the performance B) that can give him the performance of bitcoin.
A good analogy is a gold backed dollar
Meaning you can exchange the paper for the thing it represents and for that reason the paper price mimics the thing
Example if you own 1 bitcoin worth of etf stock
You can ask for Redemption to receive the physical bitcoin instead
Nuance here being if its cash settled or not but thats how etf works redemption and creation to keep diffrence between etf and spot as minimial or small as possible