Definition ∞ Securitized crypto exposure involves gaining investment access to digital assets through traditional financial instruments that derive their value from underlying cryptocurrencies. This can include exchange-traded notes, futures contracts, or other structured products that are regulated as securities. These instruments allow investors to participate in the performance of digital assets without directly holding the volatile underlying cryptocurrency. They serve as a bridge for institutional and retail investors seeking regulated avenues into the digital asset market.
Context ∞ The development of securitized crypto exposure is a significant area of growth, aiming to provide regulated and familiar investment options. A key discussion point involves the appropriate regulatory classification of these products and the extent of their correlation with the underlying spot markets. Future developments are expected to include a wider array of securitized products covering different digital assets and more sophisticated risk management features.