Roles of Digital Assets Within Investment Strategies

As various cohorts of investors look for ways to outperform equities and inflation, an increasing number are turning toward products within the digital asset ecosystem. Participation in decentralized finance comes with a different set of protocols and risks than traditional investing, but it also has considerable upsides, including allowing investors to act as their own banks. 

This Javelin Strategy & Research report looks at various methods of digital asset investment, some of the risk factors involved, and how the landscape is likely to change in the coming years. The activity within decentralized finance and traditional finance points toward substantial adoption of digital assets. As more institutions allocate resources and build out applications and use cases, the headwinds that have blown against the nascent industry are likely to shift and become tailwinds. 

Key questions discussed in this report:

• Why are digital assets finding a more prominent place in investors’ portfolios?
• What are the different ways of investing in and holding digital assets and cryptocurrencies?
• What are the risk factors in digital asset investments and how are they evolving?

Companies Mentioned:

AAVE, Bitcoin, Ethereum, FTX, Maker DAO, Metamask