Commodity Trust

Definition ∞ A commodity trust is an investment vehicle that holds physical commodities or commodity-related financial instruments on behalf of its investors. These trusts provide a means for investors to gain exposure to commodity prices without directly owning the physical asset. In the digital asset sphere, a Bitcoin trust, for instance, allows traditional investors to obtain indirect exposure to Bitcoin. This structure simplifies access to assets that might otherwise be difficult to store or trade directly.
Context ∞ The discourse around commodity trusts in crypto news primarily concerns regulatory approvals for products like Bitcoin spot ETFs. The ongoing debate centers on whether specific digital assets should be classified as commodities, which influences their regulatory oversight. Future developments include a broader array of digital asset commodity trusts seeking regulatory clearance across different jurisdictions.