The advantages of spot Bitcoin ETFs are clear. They provide simple and regulated access to Bitcoin through regular brokerage accounts. They also bring in greater oversight, reducing the risks of fraud or mismanagement. For the crypto ecosystem, these funds help attract stable institutional capital, improve liquidity, and strengthen market infrastructure.
Bitcoin remains a highly volatile asset, and investors are still exposed to sharp price changes. Regulatory risks have not completely disappeared, as rules around custody, disclosure, and anti-money laundering continue to evolve. ETFs also carry management and custody fees, which may reduce net returns compared to direct Bitcoin ownership. Finally, in times of extreme stress, liquidity in the underlying Bitcoin market could face disruptions, which might affect ETF performance.