Key Takeaways

• Daily NAV in a digital asset fund requires six operational steps to complete every business day: custodian position report, exchange reconciliation, on-chain verification, pricing application, exception review, and publication. All six must complete reliably or the cycle breaks.
• The single most important infrastructure requirement for daily NAV is automated custodian data delivery. Manual position reporting by the manager or custodian is inconsistent with a reliable daily cycle.
• Valuation policies must define pricing sources, calculation methods, and fallback hierarchies for every instrument class held, including de-peg provisions for stablecoins and fair value procedures for on-chain positions. Discretionary pricing without a documented policy basis is not operationally sustainable in a daily cycle.
• Strategies with material on-chain deployments, illiquid token exposure, or OTC positions face specific daily NAV challenges that must be resolved in the offering memorandum and the valuation policy before the first dealing date.
• The decision to offer daily NAV should be made after confirming the administrator's specific capability to support it for the fund's asset composition, not based on the general availability of crypto market prices.