Here's what a bitcoin ETF actually means for investors

cnbc.com:

The U.S. Securities and Exchange Commission just approved the first-ever batch of spot bitcoin exchange-traded funds to come out of the U.S.

The agency gave the green light on Wednesday to sponsors of 10 ETFs, including BlackRock, Invesco, Fidelity, Grayscale, and Ark Invest — paving the way for these funds to begin trading as soon as this week.

The move was largely expected, even after a social media hacking snag. A false statement saying the regulator had approved a bitcoin ETF was published on Tuesday on the SEC's social media account on X, formerly known as Twitter. The agency later clarified its account had been compromised.

The actual approval on Wednesday marked a massive step for the cryptocurrency, as it will give investors increased ways to gain exposure to the token — not just from holding it directly, but via existing financial instruments that trade on a regulated stock exchange.

But what does that all mean exactly, and how does it affect investors? CNBC runs through everything you need to know about the bitcoin ETF milestone.

An ETF is an investment fund that tracks the performance of an underlying asset. That could be stocks, a basket of currencies, a precious metal like gold, or, in this case, bitcoin.

It's a way for investors to get exposure to the value of the underlying asset without directly owning it.

ETFs trade on traditional stock exchanges, and their value should rise when the underlying asset increases in price, or fall if it decreases.

As crypto investors look to assess what the market impact of a bitcoin ETF might be, many are comparing the news of Wednesday to the SPDR Gold Shares ETF — the first-ever spot gold ETF — which got greenlit in 2004.

The total gold market capitalization was worth