Spot Products

Definition ∞ Spot products are financial instruments traded for immediate delivery and settlement at the current market price. In the digital asset market, this refers to cryptocurrencies or tokens bought and sold for direct exchange and prompt transfer to the buyer’s wallet. Unlike derivatives, which involve future delivery, spot transactions settle almost instantly. These products represent direct ownership of the underlying digital asset.
Context ∞ Spot products constitute the foundational trading activity in the digital asset market, influencing price discovery and liquidity across the ecosystem. Regulatory discussions frequently differentiate spot crypto trading from derivatives, often imposing distinct oversight requirements. The availability and regulatory clarity of spot products, such as Bitcoin ETFs, remain key drivers for institutional participation and market maturation.