A Bitcoin Spot ETF offers the same simplified investing capabilities as a Bitcoin Futures ETF, but it only allows users to invest at Bitcoin’s spot price rather than its future value.
Bitcoin spot ETFs have all the advantages of futures ETFs, such as no need to invest in Bitcoin through an exchange, less fees than crypto exchanges, and a simplified overall process. But spot ETFs invest in bitcoin at spot prices.
That’s right, spot ETFs invest in Bitcoin at the spot price, which means the buyer will hold the Bitcoin for the duration of the contract. Enthusiasts see spot ETFs as a more legitimate way to invest because spot ETFs involve holding bitcoin.
However, as the cryptocurrency industry is immature, there is currently no real bitcoin spot ETF. Experts in the cryptocurrency industry often fight for companies to build bitcoin spot ETFs because they believe that the market will take bitcoin seriously when spot ETFs are established.