You shouldn't need Bluetooth to use the hotspot. It's a tethering option that predates hotspots. Older (much older) iOS devices could not create hotspots. The hotspot works when one iOS device creates a small wi-fi network to share it's cellular connection. The other device connects to this wi-fi network as it would any other network. It doesn't even need to be another iOS device. You can connect your computer and/or most other wi-fi capable devices. The Bluetooth method predates the ability to create a local wi-fi network. You would create a bluetooth connection between your cellular (but not hotspot capable) iOS device and the other device. It's slower, requires close physical proximity, and is more difficult to set up. You'll almost never want to use this method if you have the hotspot ability available. It's a one or the other scenario. The Bluetooth option does not require the hotspot, and vice versa. What both require, as has been covered here, is that your cellular provider enables tethering as part of your data plan. These days they usually just call it a hotspot, not tethering, because almost all smartphones sold today use the far better (for almost all uses) hotspot.