Spot ETF
Traditional-exchange fund that holds physical BTC/ETH.
A spot ETF (Exchange-Traded Fund) is a fund listed on a traditional stock exchange (NYSE, Nasdaq) that holds physical BTC or ETH 1:1 against its shares. An institutional investor (pension fund, financial advisor) buys ETF shares instead of BTC itself, with no wallets or custody to deal with. January 2024: SEC approved the first BTC spot ETFs (BlackRock IBIT, Fidelity FBTC). In 2 years they sucked in $100B+ in BTC. July 2024: ETH ETFs.
In plain words
A fund traded on a traditional exchange (NYSE) that holds real BTC 1:1 against its shares. Institutional investors (pension funds, advisors) buy these ETF shares instead of dealing with crypto wallets. In January 2024 the SEC approved the first BTC ETFs (BlackRock, Fidelity). In 2 years they pulled in $100B+. This is the main driver of the 2024-25 bull run.
Example
BlackRock IBIT: biggest BTC ETF, $50B+ AUM in January 2025 (12 months after launch).
Also known as: btc etf, eth etf, ibit