As institutional investors increasingly engage with digital assets, understanding the unique characteristics of crypto markets becomes essential. Unlike traditional markets, digital asset markets operate 24/7, feature global liquidity pools, and present novel governance considerations.
Market Structure and Liquidity
Digital asset markets exhibit unique microstructure characteristics including fragmented liquidity across exchanges, varying degrees of market maker participation, and cross-venue arbitrage dynamics. Understanding these factors is crucial for institutional execution strategies.
Risk Management Frameworks
Institutional digital asset investment requires robust risk management frameworks that account for volatility, counterparty risk, custody considerations, and regulatory uncertainty. We explore best practices from leading institutional investors.
Governance and Custody
Effective governance structures and custody solutions are foundational to institutional participation. This includes evaluating custodians, implementing internal controls, and establishing clear decision-making processes.