[ Definition ]

Spot Bitcoin ETF

A spot Bitcoin ETF is a fund traded on a regular stock exchange that holds actual Bitcoin and tracks its current market price. It lets investors gain exposure to Bitcoin through a normal brokerage account, without setting up a crypto wallet or managing private keys. This matters because it opens Bitcoin to retirement accounts, financial advisors, and everyday investors who'd never touch a crypto exchange. In January 2024, the SEC approved 11 spot Bitcoin ETFs at once, including BlackRock's IBIT and Fidelity's FBTC. Unlike a futures-based ETF, which holds contracts betting on Bitcoin's future price, a spot ETF must actually own the coins backing each share, so its price tracks Bitcoin more closely.

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