Fund Unit Ownership

Definition ∞ Fund unit ownership refers to the direct or indirect holding of fractional shares or units within a collective investment vehicle, such as a cryptocurrency fund or exchange-traded product. Each unit represents a proportional claim on the underlying digital assets held by the fund. This mechanism allows investors to gain exposure to digital assets without direct custody.
Context ∞ Discussions around fund unit ownership are prominent in news concerning institutional investment in digital assets, particularly with the emergence of spot Bitcoin ETFs and similar products. The structure of these funds and the rights associated with unit ownership are closely scrutinized by regulators and investors alike. Transparency regarding underlying asset custody and valuation remains a key factor.