"The world has gone from a singular focus on Bitcoin to a much wider adoption of DeFi apps, distributed computing platforms, NFTs etc. As with the equity markets, categorization of sub asset groupings into sectors and more recently themes are important in the institutional adoptions of diverse asset classes. According to the data provider CoinMarketCap, there are over 13,000 digital assets, which leads to increasing options as well as confusion for investors. Are there really so many tokens required in order to facilitate payments? How should investors choose amongst the various options? How should investors evaluate and monitor their choices? The answers are not trivial. As software, these tokens perform different functions and their functions and use cases can change over time. To simplify the answers, investors increasingly look at the actual usage and underlying microeconomics of various networks and trading activity around a token's unique drivers of growth. Grouping and categorizing tokens is an important part to structuring optimal investment decisions. MV Index Solutions (MVIS) has developed a classification scheme for digital assets and provides category indices that allows users to measure, benchmark and capture the performance and characteristics of targeted categories within the digital assets, making digital assets more digestible to traditional finance investors while giving crypto native funds additional benchmarking capabilities."--
This valuable guide for the integration of crypto assets into traditional portfolios provides comprehensive explanations of the structure this new asset class and its impact on opportunities and risks in the portfolio context.
A definitive, all-encompassing book on digital assets of all types for investors In Mastering Crypto Assets: Investing in Bitcoin, Ethereum and Beyond, a team of seasoned investors and digital asset strategists presents a comprehensive guide aimed at institutional and professional investors for integrating crypto assets into traditional portfolios. The book offers in-depth explanations of the structure of this new asset class and its impact on investment portfolios. It guides readers on using fundamental and quantitative criteria to select blockchain-based assets, grounded in a robust foundation of knowledge and evidence. The authors demonstrate how to apply quantitative valuation concepts to digital assets like Bitcoin, understanding their role as digital stores of value in a traditional investment portfolio. The book also delves into the unique risk and return characteristics of various digital asset sectors, adapting conventional investing methods to the digital realm. It goes beyond direct crypto asset investments, introducing related equities and strategies for accessing digital assets in restricted settings. It discusses both indexed and active strategies in the context of crypto assets. A key feature of the book is exclusive interviews with industry figures such as Jan van Eck (VanEck), Peter L. Brandt (Legendary Trader), and Fred Thiel (Marathon Digital), with these interviews accessible through QR codes in the book for extended video content. This provides a dynamic and interactive learning experience. Moreover, the book benefits from invaluable research assistance from Figment and CCData, enriching its analytical depth. It also includes insightful guest articles from digital asset experts like Matthew Sigel (VanEck), Marco Manoppo (Digital Asset Research), Marcel Kasumovich (Coinbase Asset Management), Timothy Peterson (Cane Island Digital Research), Gregory Mall and Rohan Misra (AMINA), and thought leaders from Token Terminal. Mastering Crypto Assets is an invaluable resource not just for institutional and individual investors, but for anyone keen on adopting a sound, evidence-based approach to digital asset investment.