Spot ETFs

Definition ∞ Spot ETFs are exchange-traded funds that hold an underlying asset directly, allowing investors to trade shares representing ownership of that asset on traditional stock exchanges. Unlike futures-based ETFs, spot ETFs track the current market price of the asset in real-time. They offer a regulated pathway for market participation.
Context ∞ The approval and trading of spot ETFs, particularly for digital assets like Bitcoin, represent a significant development in bridging traditional finance with the cryptocurrency market. Discussions frequently revolve around their impact on asset price discovery, market accessibility for institutional investors, and potential regulatory shifts. Future developments to watch include the introduction of spot ETFs for other digital assets and their broader integration into diversified investment portfolios.