Institutions

Definition ∞ Institutions, in the financial and digital asset context, refer to established organizations such as banks, investment funds, and corporations. These entities possess significant capital and play a crucial role in market liquidity and price discovery. Their participation can profoundly influence market dynamics and asset valuations.
Context ∞ News reports frequently analyze the growing engagement of institutions with digital assets, examining their investment strategies and the impact on market trends. Discussions often revolve around regulatory approvals for institutional products like Bitcoin exchange-traded funds (ETFs) and the subsequent capital inflows. The actions of these entities are closely watched for their predictive value regarding market direction and broader economic sentiment.