Passive Investment Vehicle

Definition ∞ A Passive Investment Vehicle is a financial instrument designed to track a specific market index or asset class without active management decisions. These vehicles, such as exchange-traded funds (ETFs) or index funds, aim to replicate the performance of an underlying benchmark. In the digital asset space, this could involve funds that hold a basket of cryptocurrencies or track a crypto market index. They offer investors exposure with minimal intervention.
Context ∞ The introduction of passive investment vehicles for digital assets, particularly Bitcoin and Ethereum ETFs, is a recurring subject in financial news. These products offer traditional investors a regulated and accessible way to gain exposure to the crypto market. Discussions center on their potential to attract significant capital, increase market liquidity, and influence the broader acceptance of digital assets as an asset class.