UNITED STATES—For more than a decade, institutional investors were cautious about Bitcoin. The technology was novel, and there was little to no regulatory clarity. That equation has begun to change.

Then came the Bitcoin ETF, which has offered a bridge between the crypto economy and the institutional investment world. After only a couple of years, the regulated Bitcoin tracker had attracted tens of billions of dollars and become one of the fastest growing segments of the ETF market.

How Bitcoin ETF Moved Into the Financial Mainstream

Bitcoin ETFs are financial instruments that allow investors to track the price of Bitcoin through a traditional exchange traded fund structure. Instead of buying the cryptocurrency directly,…