The approval of spot Bitcoin ETFs on January 10, 2024, has significantly impacted traditional financial institutions' entry into the cryptocurrency market. By offering a regulated, accessible investment vehicle, ETFs enable institutions to integrate Bitcoin into portfolios without direct custody complexities, boosting liquidity and market transparency. Major firms like BlackRock and Fidelity have launched ETFs, signaling institutional trust and driving capital inflows, with $20 billion in net flows within ten months. This legitimizes crypto as an asset class, encouraging broader adoption and potentially stabilizing prices. However, regulatory oversight and volatility risks remain. The move has also prompted banks like JPMorgan to accept ETFs as loan collateral, further bridging traditional finance and crypto, fostering mainstream integration.