A legal entity — often a corporation — inserted between the fund and certain investors to prevent those investors from being directly exposed to problematic tax obligations, such as Effectively Connected Income (ECI) for non-US investors or Unrelated Business Taxable Income (UBTI) for tax-exempt investors. Blocker structures remain equally relevant in tokenized funds; the token issued to such investors represents their interest in the blocker entity rather than the fund directly.
Blocker
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