Alternative Investment Strategy

Definition ∞ An alternative investment strategy is a method of capital allocation that deviates from traditional asset classes. These strategies often involve non-conventional assets or complex financial structures. In the digital asset space, this includes approaches to investing in cryptocurrencies, decentralized finance protocols, and non-fungible tokens. Such strategies aim for portfolio diversification and potentially higher returns, often accompanied by increased risk and specialized market understanding.
Context ∞ The digital asset market currently witnesses a surge in institutional interest toward alternative investment strategies, particularly those involving yield farming, staking, and venture capital in blockchain startups. Regulatory bodies are examining these novel approaches, influencing their accessibility and operational frameworks. Future developments depend on market maturity and evolving legal clarity.