Definition ∞ A single asset trust is a financial instrument structured to hold and manage one specific type of digital asset, such as Bitcoin or Ethereum, for investors. These trusts offer traditional investors exposure to cryptocurrencies without the direct ownership or management of the underlying digital asset. Shares in the trust are often publicly traded, providing a regulated investment pathway. It simplifies access to digital asset exposure.
Context ∞ The regulatory approval and market demand for single asset trusts are significant factors driving institutional participation in the digital asset sector. Debates often center on the fee structures, liquidity, and premium or discount to net asset value associated with these products. Future developments may include a broader selection of such trusts for various digital assets, subject to regulatory advancements.
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