Definition ∞ Crypto trusts are investment vehicles that permit individuals or institutions to gain exposure to digital assets without directly holding the underlying cryptocurrency. These trusts typically hold large quantities of a specific digital asset, issuing shares to investors. They offer a regulated and often more accessible route for traditional investors to participate in the crypto market. Such structures provide custodial services and simplify compliance for participants.
Context ∞ The discussion surrounding crypto trusts frequently involves their role in institutional adoption of digital assets and their regulatory classification. Debates exist concerning their fee structures, liquidity, and premium or discount to net asset value. Future developments may include more diverse trust offerings and clearer regulatory frameworks across jurisdictions.