The rise of decentralized finance (DeFi) promises to upend traditional financial systems, but with that revolution comes a steep learning curve for investors.

Roundtable anchor, Rob Nelson, was joined by Matt Hougan, Chief Investment Officer at Bitwise, to explore the profound changes DeFi introduces and how individuals can navigate this rapidly evolving landscape. From tokenizing real estate to managing 24/7 global markets, the conversation highlighted both the opportunities and challenges of this financial shift.

Hougan emphasized that DeFi isn’t merely an extension of existing systems but a complete reimagining of how financial markets operate.

"Crypto is 24/7, 365, it’s global and open," he stated, contrasting this to the traditional finance workday. While this shift could lower costs and increase efficiency, it also demands a new level of diligence from participants. “Dislocations between markets and access to poorly disclosed assets are risks. It’s going to be a do-your-own-research market,” Hougan warned, underlining the importance of education in this new paradigm.

Rob Nelson pushed further, asking how the average investor can adapt to such a dynamic environment. Hougan pointed to the importance of trusted intermediaries like Bitwise, which curate and screen investment opportunities. "When we're building products, we screen out assets that we don’t think are appropriate to own," he explained. Bitwise’s flagship index fund, for instance, includes only a carefully selected subset of assets, ensuring that investors aren’t overwhelmed by the vast array of potentially volatile options.

The democratization of finance is a cornerstone of DeFi, allowing participation without the traditional barriers of qualified investor status. Nelson highlighted the potential for tokenized assets like real estate to unlock new investment opportunities for everyday individuals. Yet, as Hougan noted, this democratization requires thoughtful navigation. “It’s like entering a city with good and bad restaurants—you either need a trusted partner or have to learn the ropes yourself.”

Decentralized finance holds immense promise for reshaping the financial world, but with that promise comes responsibility. As investors step into this boundless new market, the guidance of experienced players like Bitwise and a willingness to adapt will be essential to thrive in the era of 24/7 decentralized finance.