An ETF is a collection of securities that you can purchase or sell on a stock market through a brokerage business. ETFs are available in almost every asset class imaginable, from standard investments to so-called alternative assets such as commodities and currencies. Furthermore, novel ETF structures enable investors to short markets, obtain leverage, and avoid paying capital gains taxes on short-term gains.

Investors are exposed to a diverse portfolio of crypto tokens through a crypto ETF, which is analogous to a fund or an investment instrument. Allowing investors to access the market in this way saves them time, gas money, and effort in deciding where to put their money.

Crypto ETFs track one or more crypto assets, whereas standard ETFs monitor an index or a collection of assets. Crypto ETFs present a simple to deploy alternative to investors who want to put money into a digital asset, despite the current fall, given the increasing price of crypto, particularly Bitcoin, over the last several years. Because they are operated almost identically, making money with ETFs is essentially the same as making money with mutual funds. The key distinction between the two is that ETFs are actively exchanged at intervals throughout the trading day, whereas mutual funds are only traded at the conclusion of the trading day.

The trader will keep an eye on ETF price movements and decide when and where to purchase and sell. Using limit or market orders, the trader establishes criteria for their chosen trades. An ETF can invest in stocks, bonds, or commodities like gold or silver, or it can try to replicate the performance of a benchmark index.
Warren Buffet frequently advises investors to invest in an index because of its long-term performance and consistency in the face of market volatility. If you purchase a stock ETF that focuses on an underlying index, returns can come through a combination of capital gains—an increase in the price of the stocks your ETF owns—and dividends paid out by those same stocks.

Bond fund ETFs are made up of Treasury or high-performing corporate bond assets. These funds can be used to diversify a portfolio's risk by including investments that have historically produced returns when the stock market has reversed.
You should avoid investing in ETFs that you are unfamiliar with. ETFs are exchange-traded funds (ETFs) that are based on underlying assets such as equities. When looking for ETFs to buy, make sure to read the short prospectus as well as the entire prospectus.

See crypto ETF as a basket that holds different cryptocurrencies, is operated by professionals, and can be traded like a regular stock on your brokerage platform. So instead of you, the investor, buying and storing a cryptocurrency yourself, you can simply buy shares from this “basket”.

These Bitmama guys explained it that way and it really stuck. Here's the full article, I hope it helps: https://blog.bitmama.io/what-is-a-crypto-etf/