Investment Baskets

Definition ∞ Investment baskets are collections of multiple digital assets grouped together for investment purposes, often designed to represent a specific sector, theme, or market capitalization segment within the cryptocurrency space. These structured holdings allow investors to gain diversified exposure to a range of assets through a single investment vehicle. They help mitigate risk compared to holding a single asset and simplify portfolio management. Such groupings can be actively managed or passively tracked.
Context ∞ News frequently covers the creation and performance of various investment baskets, particularly as institutional interest in digital assets grows. A key discussion involves the methodologies for asset selection and weighting within these baskets, and their suitability for different risk profiles. The expansion of these offerings is a significant trend, providing more accessible and regulated ways to participate in the digital asset economy.