A Special Purpose Vehicle (SPV) is a legal entity created for a specific, narrow purpose, often to isolate financial risk. In crypto, SPVs can serve multiple roles, such as holding assets or facilitating investments in blockchain projects.Typically, an SPV allows investors to pool funds while limiting their liabilities. This structure can be particularly useful for venture capital firms investing in startups or for projects looking to raise funds without exposing the entire company to potential risks.SPVs can also be utilized for regulatory compliance. By establishing an SPV, projects may better align with legal requirements, making it easier to navigate complex regulations in different jurisdictions.In summary, SPVs in the crypto space help manage risk, facilitate investment, and ensure compliance, making them a popular choice for both investors and projects.