According to Compounding Quality, an ETF, or Exchange Traded Fund, is a type of investment fund that tracks an index, sector, commodity, or asset basket and is traded on stock exchanges like a regular stock (Source: Compounding Quality, June 1, 2025). For crypto traders, understanding ETFs is crucial as the introduction of Bitcoin and Ethereum ETFs has increased institutional participation and liquidity in the crypto market. ETF flows and approval news often lead to significant price movements in major cryptocurrencies, making ETF-related developments a key trading signal.