Definition ∞ Retail investor exposure refers to the level of direct or indirect investment that individual, non-professional investors have in a particular asset class, such as digital assets. This includes holdings in cryptocurrencies, tokens, or related investment products. Understanding retail exposure helps assess market sentiment, liquidity, and potential systemic risks if a significant portion of the market is held by less experienced participants. It indicates the accessibility of an asset to the general public.
Context ∞ News often reports on trends in retail investor exposure to digital assets, reflecting shifts in market sentiment and the increasing mainstream adoption of cryptocurrencies. Regulatory bodies frequently express concerns about protecting retail investors from volatile markets and fraudulent schemes. The growth of user-friendly platforms and educational resources aims to provide better support for individuals entering the digital asset space.