Commodity ETPs

Definition ∞ Commodity ETPs are exchange-traded products that track the price of physical commodities, like gold or oil, or a basket of such commodities. These financial instruments allow investors to gain exposure to commodity markets without directly holding the underlying assets. In the digital asset space, discussions extend to products tracking digital commodities such as Bitcoin. Their structure typically involves either physical backing or synthetic replication through derivatives.
Context ∞ The debate surrounding Commodity ETPs in the crypto sector primarily concerns the regulatory classification of digital assets. Whether Bitcoin and similar cryptocurrencies are considered commodities significantly influences the potential for spot crypto ETPs to receive approval from financial authorities. Regulatory clarity on this matter is a key factor affecting institutional access to digital asset markets.