Definition ∞ Bitcoin financialization describes the integration of Bitcoin into established financial products and services. This process includes the creation of investment vehicles, lending platforms, and derivatives markets that utilize Bitcoin as a base asset. It signifies Bitcoin’s progression from a specialized digital currency to an accepted component within the wider global financial infrastructure.
Context ∞ A primary discussion point concerns the regulatory categorization of Bitcoin as a commodity, security, or currency, which significantly shapes the development of its financial products. The introduction of Bitcoin exchange-traded funds and institutional custody solutions marks a notable advancement in this financialization trend. Future observations will center on how increased institutional participation influences Bitcoin’s price stability and overall market configuration.
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