Passive Fund Structures

Passive fund structures are investment vehicles that hold a basket of assets to track a market benchmark without active trading or manager intervention. In the traditional world, these are ETFs or mutual funds; in crypto, they are often represented by decentralized vaults, index tokens, or automated DAO-managed portfolios.

These structures allow retail investors to gain broad exposure to the market without needing to manage individual assets or monitor market conditions. They are characterized by transparency, as the underlying holdings are visible on-chain, and lower costs compared to active management.

Passive fund structures are essential for institutional adoption of crypto, providing a familiar and accessible way to participate in the growth of the digital asset economy while maintaining a long-term investment horizon.