Commodity ETP

Definition ∞ A Commodity ETP, or Exchange Traded Product, is a financial instrument designed to track the price performance of an underlying commodity or a basket of commodities. These products allow investors to gain exposure to commodity markets without directly owning the physical asset. They are traded on regulated exchanges, similar to conventional stocks.
Context ∞ In the digital asset sector, discussions surrounding Commodity ETPs frequently involve proposals for Bitcoin or Ethereum ETPs, particularly in jurisdictions where these digital assets are classified as commodities. Regulatory bodies rigorously evaluate these products for investor protection, potential market manipulation, and their suitability for integration into mainstream financial markets.