Investment Fund

Definition ∞ An investment fund is a collective investment vehicle that pools money from multiple investors to purchase a diversified portfolio of securities, digital assets, or other financial instruments. These funds are managed by professional fund managers who make investment decisions on behalf of the investors. They offer diversification, professional management, and economies of scale. Investment funds are structured to achieve specific financial objectives.
Context ∞ In crypto news, the launch and performance of investment funds focused on digital assets, such as Bitcoin ETFs or blockchain equity funds, are closely watched indicators of institutional adoption and market maturation. These funds provide traditional investors with regulated access to the cryptocurrency market without directly holding the underlying assets. Regulatory approvals for new crypto investment funds often drive significant market movements and public interest.