The Introduction of Digital Assets - Module 7- ALTERNATIVE–CFA® Level I 2026
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Introduction to Digital Assets (Module 7) – CFA® Level I (2025 & 2026)
Dive into Module 7: Introduction to Digital Assets, the final segment of the CFA Level I Alternative Investments series. This comprehensive overview is aligned with the CFA curriculum and is vital for mastering Learning Module 7 (LOS a–c):
Distributed Ledger Technology (DLT): Understand the financial applications of DLT and how blockchain underpins digital assets.
Digital Asset Features: Discover what distinguishes digital assets from traditional classes—ownership structures, liquidity, and valuation challenges.
Investment Forms & Vehicles: Explore the variety of digital asset vehicles—direct ownership, tokenized funds, exchange-traded products, and more .
Risk, Return & Diversification: Analyze unique risks (volatility, regulatory, security), return drivers (innovation, adoption), and diversification potential relative to conventional assets.
Who Should Watch:
CFA Level I candidates preparing for 2025 or 2026 looking to master Module 7.
Finance enthusiasts eager to get a solid foundation in cryptocurrency, tokenization, and DLT.
Professionals seeking clarity on digital asset fundamentals and their role in diversified portfolios.
Why This Lesson Matters:
Fully aligned with Learning Outcomes (LOS a, b, c) specific to Module 7.
Supplements CFA curriculum with modern context—crypto assets are increasingly part of investment portfolios.
Presented in a clear, structured format that combines foundational theory, technology context, and investment relevance.
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Timestamp Chapter
00:07 Kickoff: why digital assets matter for CFA & portfolios
00:51 What are digital assets? (crypto, tokens, NFTs) + why testable
01:23 DLT/Blockchain primer: trustless ledgers, transparency, volatility & regs
04:32 Distributed Ledger Tech (DLT) deep-dive: what it is & benefits vs limits
07:01 Core pieces of DLT: ledger, consensus, participant network
10:45 Security & smart contracts (Uniswap example)
13:02 Blockchain mechanics: blocks, hashes, adding a transaction
15:01 Consensus models: Proof-of-Work vs Proof-of-Stake (incl. energy angle)
17:42 Permissionless vs permissioned networks (+ real-world examples)
20:03 DLT recap & exam cues
21:12 Asset map: cryptocurrencies vs tokens
22:03 Cryptocurrencies (BTC, ETH, meme coins) & CBDCs overview
24:05 Tokens & tokenization basics
25:00 NFTs: uniqueness, royalties, hype/vol
26:00 Security tokens: digitized equity/debt/RE
26:24 Utility tokens: access/gas, not ownership
26:49 Governance tokens: protocol voting
27:29 ICOs vs IPOs (speed, risk, regulation)
29:03 Market growth & institutional interest
30:48 Digital vs traditional assets: value, validation, use as money, regulation
33:42 Investable set: Bitcoin as “digital gold”
34:15 Altcoins & smart-contract platforms (Ethereum, etc.)
34:46 Stablecoins: algorithmic vs asset-backed (use & risks)
35:30 Meme coins: speculation risk (exam ID cues)
37:01 How to invest: direct vs indirect vs tokenized real assets (overview)
38:00 Direct/on-chain: wallets, CEX vs DEX
39:50 Direct risks: fraud, key loss, whale manipulation
40:29 Indirect/off-chain: trusts, futures, ETFs, equities, crypto HFs
43:15 Tokenizing real-world assets (RWA)
44:21 DeFi & dApps: lending/borrowing/trading via smart contracts (pros/cons)
46:50 Risk/return: massive upside, extreme volatility, demand-driven pricing
50:10 Diversification: low/variable correlation; institutionalization effect
51:42 Exam focus & wrap-up (definitions, comparisons, portfolio fit)