Bitcoin exchange-traded funds (ETFs) enable investors to safely access cryptocurrency without needing to handle digital assets directly. Potential approval of spot bitcoin ETFs by U.S. regulators has led to growing optimism in recent months.

A U.S.-regulated spot bitcoin ETF could potentially increase BTC’s accessibility, liquidity, demand, and price. However, there are also costs associated with such an innovation.

In an optimal scenario, direct BTC investment would coexist with various regulated instruments, enabling diverse strategies and catering to varying investor needs.