Spot Bitcoin ETFs: Creating Opportunities for Institutional Crypto Investing

Bitcoin and other cryptocurrency investments have climbed in the past few months, mostly for one big reason: anticipation of spot bitcoin ETFs. And the eagerly awaited launch is almost here.
Regulatory approval of spot bitcoin ETFs is likely in the next few days. A spot bitcoin ETF would directly hold bitcoin assets. In contrast, ProShares Bitcoin Strategy ETF (BITO), the first U.S. bitcoin-linked ETF, invests in bitcoin futures contracts. Spot bitcoin ETFs are expected to create new and bigger opportunities for institutions to invest in cryptocurrencies and other digital assets.

"We are at the beginning of the first-ever institutional bull market in crypto — and spot ETF momentum is a key part of the momentum," said Diogo Monica, president and co-founder of Anchorage Digital. Anchorage helps institutions buy, store and manage digital assets.
But while some crypto enthusiasts tout spot bitcoin ETFs as a major tailwind for digital assets in 2024, others say regulatory approval could become a sell-the-news event in the short run.