Passive investment is an investment strategy that seeks to match the performance of a market index or a specific asset class rather than attempting to outperform it. This approach typically involves minimal trading activity and lower management fees compared to active strategies. It relies on long-term market growth and diversification to achieve investment goals. In digital assets, this often translates to holding a portfolio of cryptocurrencies or stablecoins for extended periods.
Context
Passive investment strategies are becoming increasingly popular in the digital asset space, with the rise of cryptocurrency index funds and exchange-traded products. Discussions frequently address the suitability of such strategies given the volatility and evolving regulatory landscape of the crypto market. Future developments may include more sophisticated passive investment vehicles that track various sectors or themes within the digital asset economy.
The DAT provides traditional Japanese investors with compliant, non-custodial exposure to Ethereum, structurally de-risking asset integration and driving new capital formation.
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