A spot Bitcoin ETF is a type of exchange-traded fund that invests directly in Bitcoin, tracking its market price in real time. Unlike futures-based Bitcoin ETFs, which use derivatives contracts, spot ETFs hold the actual cryptocurrency in custody. They provide a regulated investment vehicle for institutions and individuals seeking exposure to Bitcoin's price movements without managing digital wallets or private keys. These products are closely watched by investors as they can influence liquidity, adoption, and market sentiment in the crypto sector.