Research summary
Our research supports rejecting Lightning as a position for a standard advisory diversification sleeve. It is valuable Bitcoin payment infrastructure, but public channel capacity is not a passive investment in a protocol. Earning routing or lease fees requires operating a hot node that stays online, choosing peers, balancing inbound and outbound liquidity, managing backups, and watching for revoked-state broadcasts. That operating business is unsuitable for the sleeve even though the underlying settlement asset and base chain are approved.
Observable review triggers
- A separate sophisticated mandate authorizes Lightning routing as an operating business with node, key, peer, liquidity, and loss limits
- A named wallet or Lightning service passes a custodian/provider review for transactional use
- A proposed-size cooperative and unilateral close test completes within the documented fee and time limits
- Any lost channel state, missed breach remedy, or unrecoverable node-key event opens an immediate review
Facts on file
- Verdict
- Rejected
- Type
- Other
- Chains examined
- Bitcoin
- Reviewed
- Last confirmed