Structured Products

Definition ∞ Structured products are complex financial instruments that combine multiple assets, such as debt securities and derivatives, to achieve specific risk-return profiles. These products are often customized to meet particular investment objectives or market outlooks. They offer exposure to underlying assets with varying degrees of principal protection or leveraged returns.
Context ∞ The emergence of structured products within the digital asset space allows investors to access sophisticated strategies tailored to cryptocurrency markets. These products can provide exposure to digital assets while managing volatility or generating yield through derivatives. However, their complexity and potential for opacity warrant careful scrutiny from both investors and regulators regarding transparency and risk disclosure.