Crypto Exchange-Traded Funds

Definition ∞ Crypto Exchange-Traded Funds are investment vehicles that hold cryptocurrency or assets related to the cryptocurrency market and trade on traditional stock exchanges. These funds allow investors to gain exposure to digital assets without directly owning or managing the underlying cryptocurrencies. They provide a regulated and accessible pathway for institutional and retail investors to participate in the digital asset market. Their structure often mirrors that of conventional ETFs, offering liquidity and diversification benefits.
Context ∞ The approval and launch of Crypto Exchange-Traded Funds remain a prominent topic in financial news, particularly concerning regulatory hurdles and investor demand. Discussions frequently address the specific cryptocurrencies they track, their custodial arrangements, and the potential impact on market prices. Observing regulatory decisions from bodies like the SEC provides critical updates on their availability and market reception.