Crypto Exchange-Traded Fund

Definition ∞ A Crypto Exchange-Traded Fund (ETF) is an investment vehicle that tracks the price of one or more cryptocurrencies, trading on traditional stock exchanges. It allows investors to gain exposure to digital assets without directly purchasing and holding them. These funds are structured to provide accessibility and regulatory oversight, contrasting with direct crypto market participation. They typically hold the underlying digital assets or derivatives linked to their prices.
Context ∞ The approval and introduction of Crypto Exchange-Traded Funds remain a highly watched development in the financial news, signifying increased mainstream acceptance of digital assets. Regulatory bodies continue to scrutinize these products regarding investor protection, market manipulation concerns, and proper custody arrangements. The expansion of these offerings could significantly alter investment flows into the digital asset ecosystem.