Definition ∞ Market funds refer to investment vehicles that pool capital from multiple investors to acquire a diversified portfolio of assets. These funds are professionally managed and can vary widely in their investment strategies, focusing on specific asset classes, sectors, or market capitalizations. They offer investors a way to gain exposure to various markets without direct asset ownership. Examples include mutual funds, exchange-traded funds (ETPs), and hedge funds.
Context ∞ In the digital asset space, market funds are increasingly providing regulated access to cryptocurrencies for traditional investors. The emergence of Bitcoin and Ethereum ETPs and other crypto-focused investment products allows institutions and individuals to gain exposure without directly holding digital assets. The ongoing discussion centers on the regulatory approval and expansion of these products across different jurisdictions. Observing the growth of crypto market funds offers insight into the institutionalization of the digital asset economy.