Bitcoin ETF

A Bitcoin ETF is an exchange-traded fund that gives investors exposure to Bitcoin through traditional brokerage markets. Spot Bitcoin ETFs hold or track Bitcoin exposure directly, while futures-based ETFs use derivatives. ETF flows are closely watched because they can reflect institutional and retail demand for Bitcoin. The approval of spot Bitcoin ETFs by the SEC in January 2024 marked a major milestone for cryptocurrency markets, allowing traditional investment funds, retirement accounts, and retail investors to invest in Bitcoin without the need to manage private keys or set up digital wallets on cryptocurrency exchanges. This has led to billions of dollars in inflows and substantially increased the liquidity and institutional adoption of digital assets globally.