Definition ∞ Institutional Cost Basis is the original value of an asset for accounting and tax purposes, as determined by an institutional investor. This figure includes the purchase price plus any associated acquisition costs. It is fundamental for calculating capital gains or losses and for strategic portfolio management. This metric is essential for financial reporting.
Context ∞ For institutional investors entering the digital asset market, establishing an accurate institutional cost basis is critical for compliance and financial reporting. News often covers how large entities account for their cryptocurrency holdings, particularly with evolving accounting standards and tax regulations, influencing investment strategies and market transparency. Proper calculation ensures regulatory adherence.
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