Definition ∞ Investment Automation involves the use of software and algorithms to execute investment strategies and manage portfolios without direct human intervention. This technology streamlines processes such as asset allocation, rebalancing, and trade execution. It aims to improve efficiency, reduce operational costs, and potentially enhance returns by removing emotional biases from decision-making. Automated systems can respond rapidly to market changes.
Context ∞ The application of investment automation in digital asset markets is rapidly growing, offering new avenues for efficient portfolio management. Current discussions often concern the sophistication of algorithms and their ability to adapt to volatile market conditions. Future developments include more advanced AI-driven strategies and greater integration with decentralized finance protocols.