This chapter differentiates between centralized and decentralized exchanges (DEXs), emphasizing the importance of regulations and compliance related to the market’s development and expansion for cryptoasset trading and investment. It also explains the pros and cons of using different methods...

This chapter reviews developments concerning central bank digital currencies (CBDCs). It introduces, analyzes, and discusses the potential implications of CBDCs on the existing cryptoassets landscape. The chapter also provides an overview of the different approaches to adopting and implementing...

Although few fully understand the evolving science of blockchain technology, many agree that such technology promises countless crypto innovative applications. However, institutions using blockchain and cryptoassets face issues. Since more institutions are beginning to explore various private,...

This chapter examines institutional investors’ considerations while investing or otherwise engaging in the cryptocurrency sector, whether exclusively in bitcoin or the broader universe of crypto or decentralized finance assets. Given the rapid change in legal and regulatory oversight and...

This chapter introduces the fundamentals of portfolio and financial consumer protection from frauds in the cryptoasset space. Cryptoassets pose new risks to portfolios and financial consumers: idiosyncratic risks stemming from their unique features and systematic risks arising from transitioning...

Since the inception of modern portfolio theory, traditional asset classes have been the standard investment products for portfolio construction. With the introduction of cryptoassets such as cryptocurrencies, tokenized securities, smart contracts, and blockchain-based token assets, the crypto...

Cryptocurrencies are notoriously difficult to value from a fundamental perspective. This valuation challenge is rooted in various debated issues in academia and the investments industry. For example, do cryptocurrencies and other cryptoassets have intrinsic value in the conventional sense? Can...

This chapter examines the current state of crypto exchange-traded funds (ETFs). It focuses on issues preventing wider implementation and specific products. ETFs have become a popular investment vehicle that investors use to help achieve their long-term goals. A recurring theme is that regulators...