Digital asset management involves securely organizing and overseeing digital assets like cryptocurrencies, tokens and NFTs. It encompasses secure storage using wallets, management of private and public keys, tracking transactions, portfolio monitoring, integration with exchanges, tax compliance, and ensuring security measures like backup and access control.

A cryptocurrency fund is a pooled investment vehicle that aggregates capital from multiple investors to invest in an agreed upon portfolio of certain types of cryptocurrencies and digital assets. These funds are managed by fund managers with experience in the cryptocurrency market. The aim of a cryptocurrency fund is to generate returns for investors by strategically trading, holding, or investing in various cryptocurrency investment strategies. There are a number of types of cryptocurrency funds, including: Hedge Funds, Venture Capital Funds, Index Funds, and Tokenized Funds to name a few.

Wave Digital Assets specializes in Private Funds that are accessible exclusively to accredited investors.

It depends on the protocol. Some protocols (Ethereum, Avalanche, Cosmos, etc.) require locking of tokens for staking. Others (e.g. Cardano) have no such requirement. Let’s look at two examples:

In Cardano the stakeholder delegates a wallet. The consensus mechanism then takes a snapshot of the wallet and counts the stake held by that wallet toward the voting power in the network (i.e. block production). The staker is free to move the ADA out of the wallet. The protocol will automatically adjust the voting power according to the balance of the wallet, while staking rewards compound as the balance grows, i.e. no restaking is needed. Staking and unstaking of a wallet is done with one simple transaction and takes minutes.

In Ethereum, stakers have to lock their ETH in a smart contract to participate in the Ethereum’s PoS consensus. To access the liquidity of the native ETH token, the staker must unstake the token. The process of staking/unstaking may take hours to months depending on the staking queue. Stakers in Ethereum have an option to receive a derivative token for their staked ETH, which represents the value of staked ETH in staking platforms such as Lido, Rocket Pool and others. Although a convenient way of accessing liquidity, these derivatives tokens (e.g. stETH, rETH, etc. ) introduce a new layer of technical risks, which should be carefully examined and understood by the investors.

Earning from a liquidity pool within the DeFi ecosystem entails contributing liquidity in the form of cryptocurrencies to a pool of assets that serves as the foundation for trading activities. This process typically involves depositing a pair of assets, such as ETH and USDC, into a liquidity pool. Liquidity pools are essentially smart contracts that house a basket of cryptocurrencies, facilitating their availability for trading purposes. Users engaging in asset swaps within these pools incur trading fees. Liquidity providers, in turn, earn these fees as a reward for their integral role in enabling the transactions. The fees earned by liquidity providers are directly proportional to the amount of liquidity they contribute to the pool.

Yield farming, liquidity mining, and staking are all popular DeFi strategies that involve earning rewards or yields by participating in various ways within the decentralized finance ecosystem. Each method has its unique characteristics and mechanisms.

1. Yield Farming: Yield farming is a strategy where users provide liquidity to DeFi protocols or decentralized exchanges (DEXs) in exchange for rewards. This involves depositing assets into a liquidity pool, which allows others to trade those assets. As opposed to traditional liquidity providing, yield farming rewards can come from various sources, including trading fees, protocol-native governance tokens, or other incentives provided by the DeFi project.

2. Liquidity Mining: Liquidity mining is essentially the same as yield farming, but the term often emphasizes the process of mining or earning new tokens by providing liquidity. Users allocate their assets to a liquidity pool, and in return, they receive a portion of newly minted tokens as rewards. Liquidity mining is commonly used to bootstrap liquidity on new DeFi platforms and incentivize users to participate in their ecosystems.

3. Staking: Staking in DeFi involves locking up cryptocurrencies in a protocol’s smart contract to support the network’s security or functionality. In return for staking their assets, users earn rewards, typically in the form of more of the same cryptocurrency or tokens through inflationary tokenomics.

An index fund providing exposure to the top 5 cryptocurrency, ranked by market cap.

Cryptocurrencies have proven themselves to be a valuable addition to traditional portfolios as they are generally uncorrelated to major markets and indices.

Before investing in a cryptocurrency fund, it’s crucial for investors to understand the volatile nature of cryptocurrencies, assess your risk tolerance, grasp the fund’s strategy and the expertise of its management team, evaluate fees and regulatory compliance, consider liquidity terms and diversification strategies, conduct thorough due diligence, and seek legal and tax advice to grasp potential implications.

Crypto funds are pooled investment funds that focus on investing in the cryptocurrency and blockchain ecosystem. They are managed by professionals who select and diversify a portfolio of digital assets. Investors buy shares in the fund, and its success depends on the chosen investment strategy and overall cryptocurrency market performance. Fees, regulatory compliance, transparency, and security are important aspects of these funds.

An investment in a Bitcoin Index Fund is a single investment into a vehicle that offers the benefits of not needing to rebalance, maintain multiple accounts, or maintain asset security.

Crypto Financial Advisers provide expertise in managing cryptocurrency investments by educating clients, assessing risk tolerance, recommending portfolios, strategizing with respect to asset allocation, monitoring performance, enhancing security measures, integrating blockchain opportunities, and aligning crypto holdings with overall financial planning.

Wave Select 5 Index currently covers 86%* of cryptocurrency market cap, providing beta exposure to a basket of crypto assets with monthly rebalance.

Created with a specific focus on NFTs and the metaverse, the Wave Non-Fungible Fund is one of the first NFT venture/hedge funds to market. The goal of the Fund is to generate returns by allocating capital across speculative investments in NFT assets and venture investments in early-stage companies building with NFT technology.