A Spot Bitcoin Exchange-Traded Fund (ETF) is much like a ticket that lets everyday investors ride the Bitcoin wave from their regular brokerage accounts. Unlike Bitcoin Futures ETFs, which bet on the future price of Bitcoin, a Spot Bitcoin ETF directly holds BTC as the real deal, not just contracts about their prices.
Quick Definition: A Bitcoin ETF is a regulated and compliant investment option accessible from major brokerage accounts that lets investors benefit from Bitcoin’s price volatility, without owning Bitcoin.
Those major investment firms issuing Spot Bitcoin ETFs in the US, like BlackRock, Fidelity, and VanEck, argue that they make it easier and safer for regular folks to jump into the digital currency game. Anyone with knowledge of the principles of DeFi might laugh at this claim, but it certainly does make Bitcoin more accessible to traditional investors who are familiar with trading stocks.