Definition ∞ A blockchain fund is an investment vehicle that allocates capital to digital assets or companies within the blockchain sector. These funds typically hold a portfolio of cryptocurrencies, tokens, or equity in blockchain-related businesses. Their structure allows investors to gain exposure to the digital asset market without direct asset management. Such funds aim to capitalize on the growth and innovation within decentralized technologies.
Context ∞ Discussions around blockchain funds often center on their regulatory classification, particularly concerning whether they constitute securities or commodities. The expansion of institutional participation in digital assets is a significant factor influencing their market acceptance and growth. Future developments include increased diversification of investment strategies and clearer jurisdictional guidelines for their operation.