Definition ∞ An investment trust is a type of publicly traded company that pools capital from investors to invest in a portfolio of assets. In the digital asset sector, these trusts often hold cryptocurrencies like Bitcoin or Ethereum, providing traditional investors with exposure to digital assets without directly owning them. Shares in an investment trust are traded on stock exchanges, offering liquidity and regulatory oversight not always present in direct crypto holdings. They function as a regulated vehicle for digital asset participation.
Context ∞ Crypto news frequently covers the launch and performance of investment trusts focused on digital assets, particularly as a barometer of institutional interest. Reports often discuss the premium or discount at which these trusts trade relative to their net asset value, reflecting market demand. Regulatory approvals for new digital asset investment trusts are significant news items, indicating growing acceptance and a pathway for broader investor access to the digital asset class.