Spot Market

Definition ∞ A spot market is a public commodity or financial market where financial instruments or commodities are traded for immediate delivery. In the context of digital assets, this refers to exchanges where cryptocurrencies can be bought and sold at the current market price for prompt settlement. Spot markets are fundamental for price discovery and provide liquidity for assets. They represent the most direct form of trading an asset at its prevailing valuation.
Context ∞ The current discussion surrounding spot markets for digital assets is heavily influenced by the ongoing debate and development of regulated spot Bitcoin exchange-traded funds (ETFs) in various jurisdictions. Analysts are evaluating the potential impact of these regulated products on market liquidity, price discovery, and overall investor access to cryptocurrencies. Key future developments to observe include the approval and performance of these ETFs and the potential expansion of spot markets for other major digital assets.