Crypto ETF

Definition ∞ A Crypto ETF is an exchange-traded fund that tracks the price of one or more cryptocurrencies. These investment products allow investors to gain exposure to digital assets through traditional brokerage accounts, circumventing the complexities of direct cryptocurrency ownership. They are structured to hold either the underlying digital assets directly or derivatives contracts tied to their prices. Such funds offer a regulated and often more accessible pathway for institutional and retail investors to participate in the digital asset market.
Context ∞ The approval and launch of Crypto ETFs, particularly those tracking major assets like Bitcoin and Ethereum, represent a significant development in the mainstream acceptance of digital assets. Regulatory bodies globally continue to assess the appropriate framework for these products, weighing investor protection against market innovation. The introduction of spot Crypto ETFs in various regions has driven substantial capital inflows and liquidity into the market. Future regulatory decisions regarding these instruments will heavily influence market structure and accessibility for a broader investor base.