Definition ∞ Cryptocurrency funds are pooled investment vehicles that allow individuals or institutions to gain exposure to digital assets without direct ownership. These funds are managed by professional entities and typically hold a basket of cryptocurrencies or a single asset like Bitcoin. They provide a regulated and accessible avenue for traditional investors to participate in the crypto market. Such vehicles offer convenience and professional management.
Context ∞ The primary discussion surrounding cryptocurrency funds involves the increasing number of spot Bitcoin and Ethereum ETF approvals in various jurisdictions. These approvals signal growing regulatory acceptance and increased liquidity. A critical future development includes the potential for more diverse cryptocurrency funds, offering exposure to a wider array of digital assets and decentralized finance protocols.