Collective Investment Schemes

Definition ∞ Collective Investment Schemes (CIS) represent arrangements where multiple investors pool their capital to invest in a diversified portfolio of assets managed by a professional. In the digital asset space, these schemes allow individuals to gain exposure to cryptocurrencies, tokens, or other digital assets without directly managing individual holdings. Examples include crypto funds, decentralized autonomous organizations that manage shared treasuries, or tokenized portfolios. These structures aim to provide professional management, diversification, and potentially easier access to complex digital markets.
Context ∞ Regulatory bodies worldwide are actively working to classify and supervise collective investment schemes that involve digital assets, which is a frequent topic in financial news. Ensuring investor protection and market integrity within these structures presents distinct challenges due to the novel nature of digital assets. The discourse often addresses the appropriate legal wrapper, disclosure requirements, and operational standards for digital asset-focused CIS.