Fractional Fund Ownership

Definition ∞ Fractional fund ownership allows multiple investors to collectively own small portions of a larger investment fund. This mechanism democratizes access to assets that might otherwise be too expensive for individual investors. It enables broader participation and diversification within a portfolio. In digital assets, this concept can extend to tokenized funds representing shares in various asset pools.
Context ∞ Fractional fund ownership is gaining traction in digital asset markets, making previously inaccessible investment opportunities available to a wider audience. The current discussion involves the legal and technical structures required to facilitate secure and compliant fractional ownership. Future developments could see a proliferation of tokenized funds offering diversified exposure to digital and traditional assets.