<blockquote>
<p><strong>Is it necessary to build [Exchange Traded Funds] over block-chain technology?</strong></p>
</blockquote>
<p>No.</p>
<blockquote>
<p><strong>in case the answer is no, why?</strong></p>
</blockquote>
<p>Imagine an ETF based on stocks in gold mining companies. Those companies own open-cast mines and rock-crushing machines.</p>
<p>An exchange can buy and sell shares, or funds based on those shares without directly themselves operating any open-cast mines or rock-crushers.</p>
<p>Rock-crushing machines are not suited to keeping track of sales and purchases of stocks and shares, or of funds based on them.</p>

CC BY-SA 4.0
2020-08-23T11:30:42.583Z
2020-08-23T11:30:42.583Z
RedGrittyBrick
<p>As you know, one of these days trends is <code>cryptocurrency ETFs</code> that the CES doesn't approve it yet. But there are some questions about them and their functioning. Is it necessary to build them over block-chain technology? If yes, would someone explain it? and in case the answer is no, why?</p>
<p><strong>Question:</strong> In other words, the main question is about how do they implemented and function.</p>

<blockchain><currencies><bitcoin-etf>
Does cryptocurrency ETF use block-chain technology?
Mostafa Ghadimi
# Does cryptocurrency ETF use block-chain technology?

(Asked by: username_0 on 2020-08-22)

As you know, one of these days trends is `cryptocurrency ETFs` that the CES doesn't approve it yet. But there are some questions about them and their functioning. Is it necessary to build them over block-chain technology? If yes, would someone explain it? and in case the answer is no, why?

**Question:** In other words, the main question is about how do they implemented and function.

**Tags:** blockchain, currencies, bitcoin-etf


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## 1 answers

### Answer by username_1 on 2020-08-23. Score: 2

> **Is it necessary to build [Exchange Traded Funds] over block-chain technology?**

No.

> **in case the answer is no, why?**

Imagine an ETF based on stocks in gold mining companies. Those companies own open-cast mines and rock-crushing machines.

An exchange can buy and sell shares, or funds based on those shares without directly themselves operating any open-cast mines or rock-crushers.

Rock-crushing machines are not suited to keeping track of sales and purchases of stocks and shares, or of funds based on them.


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