What is a inverse exchange-traded fund (ETF)?
Could you please elaborate on the concept of an inverse exchange-traded fund (ETF)? As an investor with a keen interest in the world of finance and cryptocurrency, I'm curious to understand how an inverse ETF differs from traditional ETFs. Specifically, I'm interested in knowing what strategies it employs, how it aims to profit from market downturns, and whether it's a viable investment option for those looking to diversify their portfolios. Your insight into this complex yet intriguing financial instrument would be greatly appreciated.