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Stage of entry: it refers to how intently an investor can work together with or from a digital asset in its purest type (on-chain). The extra off-chain layers or wrappers round an asset, the much less stage of entry. For instance, the spot bitcoin ETF is a standard (offchain) monetary product backed 1:1 by bitcoins saved in a certified custodian. Being cash-redeemable solely, buyers can’t redeem their shares for precise bitcoin, however they have to liquidate them for money. On the opposite finish of the spectrum, self-custody is the purest, most direct entry to the on-chain asset, with instantaneous settlement and with the flexibility to do issues with that asset straight – be it transferring, swapping, staking, lending, or borrowing towards it – with out the necessity for proxies or further settlement layers.
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