The Crypto For Advisors Bulletin today is written by me! Unique me while reflecting on the growth of the cryptographic industry. Then, Kim Klemballa de Coinndesk Answer questions about the minds of the advisors when it comes to prices and comparison with the asset class in “Ask the expert.”
I hope you enjoy our newsletter. Thank you for letting me be your butler. Thanks to all incredible taxpayers who share their stories week after week. I look forward to where we will be in 2 years.
Web Seminary Alert: Explore the digital asset market and the ways of accessing the class of cryptographic assets beyond Bitcoin. Unique Ric Edelman of DACFP, David Lavalle de Grayscale Investments and Andrew Baehr of Coindesk indices for an informative web seminar on July 16 from 1 to 2 pm et. Sebining live only. CE credits available. Get more information and register today.
– Sarah Morton
Two years later and just starting
Two years ago, I assumed the role of a crypto editor for advisors at a crucial moment. It was in mid -2023, and the cryptocurrency industry was in the middle of a deep winter. The collapse of the main loan platforms and the implosion of FTX had sent shock waves through the markets. The regulatory climate of the United States was hostile, marked by execution tactics first, and trust was shaken.
But even then, the underground currents of something bigger were impossible to ignore. Let’s go quickly until today, and we are standing on the edge of what Bank of America calls a “unique transformation into a millennium.” They are not talking about memes or speculations. They are talking about the remodeling of global financial infrastructure, economic models and digital property, and is being driven by cryptography.
An ode to Bitcoin: the genesis
“Bitcoin belongs to the same breath as the printing press and artificial intelligence.” – Bank of America:
Bitcoin, born after the financial crisis of 2008, created something revolutionary: a decentralized digital currency and fixed supply. It did not belong to the government, any corporation and no central authority.
From there, a movement began. Early adoption saw students play with GPU, developers who build wallets, entrepreneurs who launched exchanges and miners who pursue cheap energy worldwide. A technological and economic revolution took shape.
Today, we are seeing Bitcoin ETF of the world’s largest asset administrators (Blackrock, Fidelity and Grayscale are the first three per AUM, and even the adoption of the state-state as countries such as the US. UU. And the United Arab Emirates run to become global cryptographic centers. It is an incomparable acceleration of financial innovation.
Ethereum’s emergence and smart contracts
Bitcoin caused the fire, but Ethereum, and the innovation of intelligent contracts that he introduced, brought public services, programability and the ability to tokenize everything: real estate, carbon credits, beautiful arts, identity, actions and even protocols generating performance.
While Bitcoin and Ethereum dominate the headlines, there are tens of thousands of digital assets. And while the investment takes the center of attention, Blockchain is silently transforming supply chains, intellectual property, finance and more.
Public companies are adding crypto to their balances. More than 140 public companies have announced Bitcoin reserves. Exchanges such as Coinbase and Kraken will offer tokenized actions, while retail platforms such as Robinhood expand their cryptographic products. The access points are multiplying: direct consumer platforms, ETFs (now in the hundreds)Tokenized funds and direct property. And the list continues to grow.
The landscape has changed: are you adopting?
Only a handful of advisors were very early adopters, but that is evolving slowly. There is broad recognition of the opportunity: support customers, protect relationships and win new businesses. It is becoming increasingly common to listen to advisors who are winning customers simply because they are willing to talk about Bitcoin.
On the other hand, the lack of regulation, the policies of the prohibitive company, the volatility behavior of digital assets and general uncertainty with a new class of assets have caused hesitation. In addition, the advisors have much to pay attention to, and now, learn a new class of assets is added to the list. Despite all this, customers want to access digital assets. The recent data from the Coinshares survey highlight that customers want the help of their advisors and expect them to be well informed in digital assets. More than 80% of respondents responded that they would be more likely to work with an advisor that offers digital asset guidance, and 78% of investors that are not crypto say they would resort to an advisor if the encryption support was available. In particular, almost 90% said they planned to increase their exposure to cryptography in 2025.
A call to action
Blockchain is an infrastructure, crypto is more than a class of assets and technology extends far beyond investment.
The industry is maturing, the regulation progresses and the largest institutions in the world are developing in blockchain. As the United States Secretary of the Treasury, Scott Besent said recently, “cryptography is the most important phenomenon that occurs in today’s world.”
You do not need to be a Critys Trader or Blockchain developer. But if you are a fiduciary, a guide, a planner, you owe your customers to understand what is happening. Education is key.
In two years of healing this newsletter, I have seen the feeling of skepticism to curiosity to strategic integration. And we are just starting. I am delighted to be here with you on your cryptographic trip. Connect with me to get ideas about future topics that you would like to see approached.
– Sarah Morton, strategy director, Meetami Innovations Inc.
Ask an expert
Q. Why does the same digital asset have a different price in each exchange?
A. The actions “connect” to an exchange, allowing a centralized price. Crypto, on the contrary, is “decentralized.” This means that there is no “plug” to set a digital asset. While cryptographic prices are based on supply and demand (as well as other factors)Each exchange operates independently and, therefore, prices may vary between different exchanges.
Q. How can I find reliable price data for digital assets?
A. There are many digital asset index suppliers and data. Look for prices that (1) It comes from a good and reliable provider with a history proven in digital assets, (2) It has a transparent approach and based on construction rules, and (3) It presents carefully constructed criteria on how the price is captured. The index methodology is incredibly important. For example, if the selection criteria of an index included “negotiating in more than one eligible Exchange ”with carefully designed eligibility, then in the case of FTX collapse, FTT (FTX exchange token) It would not have reached the index. Reflective construction can rule out bad actors.
Q. Why do people who use Bitcoin to measure the entire digital asset panorama?
A. While Bitcoin now represents 65% of the total digital asset market, there were times that Bitcoin was less than 40% of the market. An asset should not be a reference point for all the kinds of assets. Diversification is key to institutional investors to manage volatility and capture broader opportunities. The effective comparative evaluation should serve multiple electoral districts, which is establishing performance evaluation, support for investment strategies and establishes industry standards for all.
Indices like Coindesk 5 (CD5)COINDESK 20 COINDESK 80, COINDESK 100 and Count Memecoin They were built to meet the needs of those who seek to compare, trade and invest in the expenses of constantly evolving digital assets.
– KLEMBALLA, COENDESK INDICES
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