Crypto Proxies

Definition ∞ Crypto Proxies are traditional financial instruments or publicly traded companies whose value is substantially correlated with the performance of specific cryptocurrencies or the broader digital asset market. These assets offer investors exposure to the crypto space without direct ownership of digital tokens. Examples include shares in companies with significant Bitcoin holdings or firms heavily involved in blockchain infrastructure. They serve as an indirect investment avenue.
Context ∞ News reports frequently discuss Crypto Proxies as an alternative for institutional investors or those constrained by regulatory hurdles from directly acquiring cryptocurrencies. The performance of these proxies is closely observed for insights into broader market sentiment towards digital assets, especially during periods of price discovery or regulatory uncertainty. Their valuation often reflects both their core business operations and their crypto-related exposure.