Crypto ETFs

Definition ∞ Crypto ETFs are financial instruments that track the performance of cryptocurrencies or baskets of digital assets. These exchange-traded funds offer investors exposure to digital assets through traditional brokerage accounts. They aim to simplify investment in the crypto market by providing a familiar and regulated investment vehicle. The introduction of crypto ETFs represents a significant step in the institutional adoption of digital assets.
Context ∞ The current focus for crypto ETFs centers on their market performance and the impact of their approval on broader digital asset adoption. Discussions often revolve around the inflows and outflows of capital into these products and their correlation with underlying asset prices. A critical future development to watch for is the potential expansion of crypto ETF offerings to include a wider range of digital assets and investment strategies.