PT  - JOURNAL ARTICLE
AU  - Jason Scharfman
TI  - Operational Due Diligence on Cryptocurrency and Digital Asset Funds
AID  - 10.3905/jai.2021.1.146
DP  - 2021 Sep 28
TA  - The Journal of Alternative Investments
PG  - jai.2021.1.146
4099  - https://pm-research.com/content/early/2021/09/28/jai.2021.1.146.short
4100  - https://pm-research.com/content/early/2021/09/28/jai.2021.1.146.full
AB  - This article analyzes three key trends that have emerged among institutional investors performing operational due diligence (ODD) on cryptocurrency and digital asset funds. The first trend is enhanced crypto-specific ODD specialization as compared to other alternative asset classes. The second trend is an institutional focus on crypto custody arrangements. The third trend is a rapid movement toward integrating ODD and investigative due diligence processes in the crypto space.Key Findings▪ The rigor of operational due diligence on crypto investments and asset managers has increased as more institutional capital has migrated into the crypto space.▪ Crypto asset managers increasingly are focused on developing more institutional operational infrastructures, particularly in areas such as custody for DeFi investments. ▪ Investors increasingly combine investigative and operational due diligence processes when evaluating crypto asset managers.