Spot Crypto Product

Definition ∞ A spot crypto product refers to a digital asset that is bought or sold for immediate delivery and payment at the current market price. Unlike derivatives, which derive their value from an underlying asset, spot products involve direct ownership and physical settlement of the cryptocurrency. These transactions occur on spot exchanges.
Context ∞ The discussion around spot crypto products in news often involves their increasing acceptance by institutional investors and the regulatory clarity surrounding their classification. The situation includes the approval of spot Bitcoin exchange-traded funds, which allow traditional investors to gain exposure to the underlying asset without direct custody. A critical future development involves the expansion of regulated spot markets for a wider range of digital assets, further integrating cryptocurrencies into mainstream financial systems.