Commodity Trusts

Definition ∞ Investment vehicles that pool capital from multiple investors to hold and manage underlying physical commodities or commodity-linked derivatives. These trusts typically issue shares that represent ownership in the underlying assets, allowing investors to gain exposure to commodities without direct physical ownership. They are structured to track the price performance of specific commodities, offering a regulated avenue for market participation.
Context ∞ The approval and introduction of commodity trusts, particularly those linked to digital assets or futures, represent a significant development in institutional adoption. News concerning ‘Commodity Trusts’ often pertains to regulatory evaluations, asset inflows, and their impact on the price discovery of underlying assets. Analysts monitor these trusts for indications of shifting capital flows and investor preferences within the broader financial landscape.