Spot ETF
An exchange-traded fund that holds the actual underlying asset itself, as opposed to futures contracts tied to its price.
A spot ETF is an exchange-traded fund that holds the actual underlying asset itself — real bitcoin or ether, for example, held by a custodian — and issues shares that trade on a stock exchange through an ordinary brokerage account.
This is a structurally different product from a futures-based ETF, which holds futures contracts tied to the asset's price rather than the asset itself. See Kaavon's "Spot Crypto ETFs Explained" research article for how a spot ETF's share price actually stays tied to its underlying asset.
Examples
- A spot bitcoin ETF's custodian holds real bitcoin corresponding to the fund's outstanding shares.
- Owning spot ETF shares is not the same as holding the underlying asset directly — the shares can't be withdrawn to a personal crypto wallet.
Learn more
Spot Crypto ETFs Explained
Read the research article
Authorized Participant
Read the Authorized Participant glossary definition
Crypto Index ETFs and ETPs: Beyond the Spot Bitcoin and Ethereum Funds
Read the article
Why So Many Altcoin ETFs Launched So Fast: The SEC's Generic Listing Standards
Read the article
The Zcash ETF Race: How Do You Audit a Privacy Coin's Reserves?
Read the article