Spot Crypto ETF

Definition ∞ A Spot Crypto ETF is an exchange-traded fund that directly holds and tracks the real-time market price of a specific cryptocurrency. Unlike futures-based ETFs, a spot ETF acquires and secures the actual digital asset it represents, offering direct price exposure. This structure provides retail and institutional investors with a regulated, accessible way to gain exposure to cryptocurrencies without the complexities of direct ownership. These funds are listed and traded on traditional stock exchanges, subject to their operational rules.
Context ∞ The approval and performance of spot crypto ETFs, particularly for Bitcoin and Ethereum, are central to market discourse and regulatory decisions globally. Discussions focus on market liquidity, custody arrangements for digital assets, and the overall impact on market price discovery. Regulatory bodies continue to assess these products concerning investor protection and market integrity, influencing their broader availability.