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Feb 08, 2022

CF Digital Asset Classification Structure: The Compact Primer

Learn how to use the most important tool yet for understanding and investing in the digital asset universe, fast

Essential tool
The statement that CF Benchmarks’ recently launched CF Digital Asset Classification Structure (CF DACS) is one of the most notable junctures in years for adoption of the emerging asset class, is a difficult one to argue against.

CF DACS brings institutional-grade definition and differentiation to the numerous nascent and often rapidly developing concepts in the space, from a UK FCA authorised Benchmark Administrator, for the first time.

That means the structure has quickly become an essential tool for investors seeking improved clarity in their understanding of the digital asset universe, with the ultimate aim of optimising their portfolio construction process.

This particularly applies to institutional market participants, who are obliged to meet stringent internal and regulatory criteria throughout the allocation process.

Simple, by design
As shown in our comprehensive introductory article on CF DACS, the structure is, in essence, simple.

Its three-part design is intended to be instantly visualisable – and in turn, readily understandable.

CF DACS’s basic architecture, as pictured below, can thereby be readily committed to memory, meaning that the process of gaining facility with CF DACS components, begins almost immediately.

CF Digital Asset Classification Structure – Basic Framework

Source: CF Benchmarks

A little bit extra
All that said, because CF DACS is a cogent and comprehensive classification structure of the digital asset universe, it does contain a considerable amount of discrete content elements that together constitute its interrelated parts.

Therefore, particularly for those who are new to the world of digital assets, additional pointers may be helpful to aid complete absorption.

That is why we created an elegantly brief but surprisingly thorough introductory video on CF DACS, as a quick and easy way to become familiar with it.

(Click here to watch the video in a new window, or simply press play below to view it on this page.)

Breaking it down

To accelerate the learning process even further, we've also put together the mini video guide below.

Source: CF Benchmarks

Navigating the stucture
The guide splits the presentation into two main sections, then divides those sections into a handful of bite-sized parts.

Alongside each part, a timecode and key details about the part are provided.

The timecodes can be used to navigate the content quickly by skipping to any part of the CF DACS video desired.

Then, for a deeper dive, our full article on the CF Digital Asset Classification Structure mentioned earlier, is the ideal next step.

Additionally, contact us with any questions or comments about CF DACS via our homepage.

The CF Digital Asset Classification Structure took thousands of hours to perfect, but can be grasped in a few minutes, whilst benefits from its active deployment can continue to accrue for years.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.

Note: Some of the underlying instruments cited within this material may be restricted to certain customer categories in certain jurisdictions.