To generate wealth, investors have long relied on traditional assets like stocks and bonds to build portfolios, but as the global financial system continues to evolve, digital assets have become more relevant. Governments, companies, institutional investors and fund managers are now incorporating crypto into their investment strategies.

A new form or money
Crypto, short for cryptocurrency, is a digital store of value that can be transferred, stored and traded online. Crypto uniquely allows holders to participate in the blockchain network validating and securing the crypto itself. As more users and transactions utilize the network's infrastructure, the utility and demand for the crypto may grow, giving holders economic exposure to network adoption and usage.

A shared ledger
A blockchain is a decentralized digital ledger that records transactions across a network of computers. Transactions are turned into blocks, linked together chronologically one permanently recorded, hence the name blockchain. The ledger is fully transparent, and every transaction can be verified by anyone. Every computer on the network maintains a full copy of the ledger, removing the need tor a single, central authority which reduces the risk or downtime or manipulation, and makes it difficult for any single party to alter records or control the network.

How does it work?
Crypto works using blockchain technology. Every time crypto is sent or received, the transaction is confirmed by a network of computers and permanently recorded on the blockchain using cryptography, Every transaction is transparent and secured.

Why crypto?

Because crypto may enhance traditional portfolio.
A thoughtful allocation to crypto can help investors access a new source of return potential by participating in a growing technology-driven ecosystem.

New source of growth potential

Leading crypto assets like bitcoin and ether that have provided value in real world applications have demonstrated high historical growth. Including even a small allocation to a traditional portfolio can improve overall growth potential.

What's driving the growth of crypto?

Adoption. We’ve seen the market for digital assets mature significantly over the past decade. What was once seen as a curiosity, is increasingly become topical.

  • Evolving regulatory frameworks and institutional participation
  • More established trading, custody, and investment solutions
  • Public companies and governments adopting digital assets
  • Innovation in areas such as AI, stablecoins, and blockchain technology
  • The growth of crypto exchange-traded funds (ETFs)

Diversification into the crypto ecosystem

Crypto provides participation in different investment themes that typically go beyond traditional equities and fixed income investments.

Decentralized finance theme

Financial system that allows users to transact without traditional financial institutions or intermediaries.

Digital value theme

A store of value, ownership or utility that exists electronically that can be exchanged online.

Blockchain innovation theme

The ongoing development and utilization of blockchain technology in new or existing applications.

Global payment innovation theme

The ongoing development and utilization of borderless, fast, low-cost transfers of value.

FAQ

Crypto assets have historically shown low correlation to traditional stocks and bonds, offering diversification benefits alongside higher growth potential and volatility.

No, you don't need to go all in. Data suggest that a satellite allocation to crypto in a balanced portfolio has historically improved risk-adjusted returns.
Source: 1832 Asset Management L.P.

Investing directly into crypto can be complicated. It involves opening and funding a separate crypto exchange account, understanding and maintaining crypto storage, and keeping track of wallet addresses and seed phrases. Crypto markets move fast, are highly technical and with thousands of options available, it can also be difficult to choose the right asset(s) for investment.

Crypto exchange-traded funds (ETFs) can provide the exposure without the complications. Investors can add an allocation to crypto through traditional brokerage accounts without directly buying, storing or securing the assets. Some of these ETFs are passive and others feature active professional management (asset selection, rebalancing, staking etc.).

While adoption and innovation continue to advance, the asset class retains unique and specific risks.

  • Digital assets are historically more volatile than traditional asset classes like stocks or bonds.
  • The crypto space remains relatively new and regulation is evolving
  • Widespread adoption is not guaranteed, and long-term growth depends on real world use and its ability to create value.

Featured fund and insights

Dynamic Active Multi-Crypto ETF (DXMC)

Access the high-growth opportunity in crypto without the complexities of direct crypto investing. DXMC is a convenient, all-in-one solution actively investing in assets like bitcoin, ether and more.

View fund profile

Resources

   Investor Brochure(PDF Opens in a new tab)

Simplicity, diversified exposure, leading active management - the benefits of using Dynamic Active Multi-Crypto ETF (DXMC) for your portfolio’s digital assets allocation.

   Digital assets 101: Understanding the opportunity

Demystify digital assets. Before understanding how it can enhance your portfolio, understand the opportunity behind the asset class.

   Crypto Glossary

Expand your crypto-related vocabulary.

   DXMC Monthly Commentary

   Podcast - Digital assets: A different type of diversification

Pascal St-Jean joins Michael Hainsworth on the podcast to discuss the relevance of digital assets and the role it can play in a modern investment portfolio.

   CE Credits: Introduction to Digital Assets

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments, including ETFs. Please read the prospectus before investing.

Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Investors should consult their own professional adviser for specific investment and/or tax advice tailored to their needs when planning to implement an investment strategy to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P. does not guarantee its accuracy or reliability. Dynamic® is a registered trademark of The Bank of Nova Scotia, used under licence by, and is a division of, 1832 Asset Management L.P. © Copyright 2026 The Bank of Nova Scotia. All rights reserved.

© 2026 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Crypto assets involve significant risks, including substantial price volatility, liquidity, regulatory, custody, cybersecurity and technology risks. Investors may lose some or all of an investment in crypto assets. Diversification does not assure a profit or protect against loss.