CFA L1 / Alts / M7. Digital Assets
Module 7 · Alternative Investments

Introduction to Digital Assets

EN: Distributed ledger technology, crypto categories, and access vehicles.
VN: Blockchain, các loại crypto và cách tiếp cận.

1. Distributed Ledger Technology (DLT) Concept

  • Blockchain Linked blocks of transactions; tamper-resistant via hashes.
  • Consensus Proof of Work (Bitcoin) vs Proof of Stake (Ethereum post-merge).
  • Smart contracts Self-executing code on blockchain (Ethereum, Solana).
  • Permissioned vs permissionless Open public chains vs restricted enterprise chains.

2. Categories of Digital Assets Concept

  • Cryptocurrency BTC, ETH — transfer/store of value.
  • Stablecoin Pegged to fiat (USDT, USDC) or algorithmically managed.
  • Tokens Utility, security, governance tokens.
  • NFT Non-fungible — unique digital asset (art, collectibles, IP).
  • CBDC Central-bank digital currency.

3. Investment Vehicles Concept

  • Direct Buy via exchange (Coinbase, Binance) — wallet + custody risk.
  • Spot ETF Holds underlying crypto (BTC, ETH).
  • Futures ETF Holds futures contracts — subject to roll yield drag.
  • Crypto stocks Equity in crypto-related companies (miners, exchanges).

Practice problem Practice

Practice problem

A token is pegged 1:1 to USD via reserves of cash and short-term Treasuries. Which category?

Show solution
Stablecoin: pegged to fiat.
Reserve-backed (vs. algorithmic).
Reserve-backed stablecoin (e.g. USDC, USDT)