Investment Vehicles (Crypto-tied)

November 21, 2023 - Around 2 mins mins to read

Understanding Investment Vehicles (Crypto-tied)

Investment vehicles, also known as assets or products, are utilized by investors to achieve significant returns. These vehicles typically include securities like stocks and bonds, as well as investments such as mutual funds and exchange-traded funds (ETFs).

In the world of cryptocurrencies, there are also investment vehicles that are tied to crypto assets. These investment vehicles serve as a way for investors to generate returns within the decentralized finance (DeFi) sector. Commonly referred to as cryptocurrency funds, they are exclusively composed of digital assets. Traders have a variety of crypto-tied investment vehicles to choose from, which are based on factors such as risk category, asset composition, regulatory framework, restrictions, and diversification.

The risk category indicates the type of regulation that governs the investment vehicle and its accessibility for different types of investors. For instance, investment products designed for retail investors often have more restrictions on asset types and may involve the use of derivatives and concentration risks.

Author:

Varit Bulakul is the president of investment banking and digital assets at The Brooker Group, a publicly listed financial consultancy and capital management company based in Thailand. Varit played a crucial role in the Brooker Group’s transition to digital assets and is leading the company’s vision of integrating the digital asset ecosystem into traditional financial services. The Brooker Group holds the distinction of being the first publicly listed company to directly invest in DeFi and DApps projects.

Prior to joining the Brooker Group, Varit worked as an auditor at Deloitte in Bangkok. He holds a Bachelor of Arts degree in Accounting and Finance from Lehigh University and a master’s degree in Accounting from Boston College.