Buy-Side Sell-Side

Definition ∞ Buy-side and sell-side are terms differentiating participants in financial markets based on their primary function. The buy-side consists of institutions and individuals who purchase financial assets for investment purposes, such as asset managers and hedge funds. The sell-side comprises entities that create, market, and sell financial products and services, including investment banks and brokers. These two sides interact to facilitate market transactions.
Context ∞ In digital asset markets, the distinction between buy-side and sell-side is evolving as traditional financial institutions enter the space. The buy-side seeks exposure to digital assets through various vehicles, while the sell-side develops compliant products and infrastructure for this demand. Discussions frequently concern the regulatory clarity needed for broader institutional participation and the development of robust market infrastructure.