Structured Product

Definition ∞ A structured product is a non-traditional financial instrument whose value is derived from the performance of an underlying asset or index. These products are often customized to meet specific investor risk-return objectives, combining features of traditional investments like bonds with derivatives. In digital assets, they can offer exposure to cryptocurrencies with predefined risk parameters.
Context ∞ The introduction of structured products in the digital asset space aims to attract institutional investors by offering more familiar and risk-managed investment vehicles. News frequently covers new offerings and their potential to broaden market participation beyond direct cryptocurrency holdings. Regulatory oversight for these complex instruments remains a significant area of focus.