What Are Investment Vehicles (Crypto-tied)?

An investment vehicle is an asset or product used by investors to gain significant returns. Investment vehicles usually include securities such as stocks and bonds as well as investments including mutual funds and EFTs.

These elements can also be seen in the crypto space. These crypto-tied investment vehicles are a product used by investors to generate returns within the DeFi sector. Also known as a cryptocurrency fund, they are composed entirely of digital assets. Using these crypto-tied investment vehicles, traders can select their preference depending on the category risk, the assets involved, the regulations, restrictions, and diversification.

The category clarifies the type of regulation under which the investment vehicle falls and what type of investors can access it. For instance, products for retail investors tend to have more asset-type restrictions while using 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 was instrumental in the Brooker Group’s move to digital assets and drives the company’s vision to bring the digital asset ecosystem to the traditional financial services sector. The Brooker Group was the first publicly listed company to invest directly into DeFi and DApps projects. 

Prior to joining the Brooker Group, Varit was an auditor at Deloitte in Bangkok and received a BA in science in accounting and finance from Lehigh University and a master’s degree in accounting from Boston College.