An Engadget hands-on with the Verizon iPhone reveals that it runs iOS 4.2.5 and has Personal Hotspot built right into the Settings app.
It's unclear if the Personal Hotspot feature will be a Verizon exclusive. Apple writes, "iPhone 4 on Verizon Wireless will also include new Personal Hotspot capabilities allowing customers to use iPhone 4 to connect up to five Wi-Fi enabled devices."
Hopefully existing iPhone customers will also receive the iOS 4.2.5 update which enables this feature.
