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BTC Price Exposure

Definition

Having assets tied to Bitcoin’s value. BTC price exposure signifies the degree to which an individual’s or entity’s financial position is affected by fluctuations in the market price of Bitcoin. This can arise from direct ownership of Bitcoin, investments in Bitcoin-related financial products like exchange-traded funds (ETFs), or participation in protocols that peg their value to BTC. It quantifies the sensitivity of an investment portfolio to Bitcoin’s market performance. Understanding this exposure is critical for risk management in the digital asset space.