Bitcoin ETF
A fund tracking bitcoin's price that trades on stock exchanges, letting investors gain exposure without holding the coin.
After a decade of rejections, the SEC approved spot Bitcoin ETFs in January 2024. These funds hold actual bitcoin and trade on exchanges like Nasdaq, so a brokerage account is all you need for exposure.
The launch was one of the most successful in ETF history. BlackRock's IBIT drew tens of billions within its first year, bringing pension funds and advisors into bitcoin for the first time.
A spot ETF isn't bitcoin itself. You can't withdraw the coins or spend them, you hold a share, and the fund's custodian holds the keys.
Related terms
A fund that trades on stock exchanges like a share, tracking an asset's price without holders owning it directly.
Securities and Exchange Commission (SEC)The US federal agency that oversees securities markets and has become crypto's most prominent enforcement regulator.
CustodyThe safekeeping of crypto assets and the private keys that control them, often handled by a regulated third party.
TradFiTraditional finance, the established system of banks, exchanges, and regulators that crypto positions itself against.