Valuation of Cryptoassets: A Guide for Investment Professionals
Valuation of Bitcoin, Ethereum, and other cryptoassets is a challenge for the investment industry. We review the tools available to value cryptoassets, and in doing so, we aim to help practitioners better understand the dynamics of cryptoassets.
Report from CFA
This guide covers valuation methodologies—currently in discussion or in use among practitioners—for valuing cryptoassets. The rise in popularity of cryptoassets over the past decade raises the issue of how to value the different types of cryptoassets in the market. Investment practitioners who are interested in or investing in cryptoassets should have a thorough and reasonable basis for their investment decision making, grounded in an analysis of the intrinsic value of these assets wherever possible. This guide is designed to equip professionals with the most relevant valuation models and tools to support their analysis.
The methodologies analyzed here are derived from interviews with industry practitioners and a review of the literature analyzing these models. We specifically cover smart contract platforms, decentralized applications, and Bitcoin.
