A crypto exchange-traded pool (CETF) is a type of pool and exchange-traded product, i.e. they are traded on crypto exchanges. CETF are similar in many ways to mutual pools, except that CETF are bought and sold throughout the 24 hours on crypto exchanges. An CETF holds assets such as cryptocurrency, tokens, coins, and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.
A CETF divides ownership of itself into tokens that are held by token holders. The token holders indirectly own the assets of the POOL. Token Holders are entitled to a share of the profits, and they would be entitled to any residual value if the pool undergoes liquidation.
CETF may be attractive as investments because of their low costs, asset aggregation, and tradability
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