Definition ∞ A Spot Ether ETF is an Exchange Traded Fund that directly holds Ether, the native cryptocurrency of the Ethereum network, as its underlying asset. This investment vehicle allows traditional investors to gain exposure to Ether’s price movements without directly purchasing or storing the digital currency. It offers a regulated and accessible investment option.
Context ∞ The potential approval and launch of spot Ether ETFs are highly anticipated events in the cryptocurrency market, expected to attract significant institutional capital. These products could substantially increase market liquidity and mainstream acceptance of Ether, mirroring the impact observed with spot Bitcoin ETFs.