ETP Structure

Definition ∞ ETP structure refers to the legal and operational framework of an Exchange Traded Product, a type of security that tracks an underlying asset, index, or basket of assets. In the digital asset space, this typically involves a regulated financial product that allows investors to gain exposure to cryptocurrencies without directly holding them. The structure dictates how the product is created, redeemed, and traded on traditional exchanges. This offers a familiar investment vehicle for digital assets.
Context ∞ News regarding ETP structure frequently covers regulatory approvals and product launches for cryptocurrency-linked investment vehicles. A primary discussion point concerns whether these structures are physically backed by the underlying digital asset or use derivatives. Future developments will likely involve a broader range of digital asset ETPs becoming available in regulated markets globally, increasing accessibility for traditional investors. Regulatory clarity remains a key factor.