Digital Asset Index Funds and Multiple-Asset Funds – Private
Private Digital Asset Index Funds and Multiple-Asset Funds offer investors exposure to the price movements of a basket of digital assets while avoiding the hassles of buying, storing and safekeeping these assets.
The underlying assets may be coins, tokens or other digital assets, depending on the fund.
Some funds are actively managed; others are based on an index composition. Managers of active funds evaluate the market and its prospects, consider market capitalization, asset prices, number of coins/tokens in circulation, daily trading volumes, cyclical patterns and other attributes in order to make investment buy/sell decisions. Index funds often rebalance and reconstitute their portfolios on a calendar or percentage basis or other trigger. Investors of all these funds have the opportunity for long-term capital appreciation but are exposed to liquidity risk.