In the Crypto For Advisors Bulletin today, Samantha Bohbot, partner and Growth Director of Rockowayx breaks down decentralized finances and Bitcoin, Ethereum and Solana differences contribute to this space.
Then, Kevin Tam answers questions about institutional investment in Cryptographic ETF and points out some global trends in “ASK to an expert.”
– Sarah Morton
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Sectors beyond Bitcoin: Ethereum, Solana and chain economies
Bitcoin can master the cryptographic conversation as the most established digital asset, but the current panorama presents many convincing opportunities for investors.
Outside Bitcoin, blockchains power applications that delight global users, generate significant income and are growing impressive.
Bring global finances in the chain
Real world assets tokenized (RWAS) Consult the issuance and trade of traditional instruments such as actions, bonds, basic products and alternative assets in blockchains. The advantages of doing so are substantial. The establishment of asset operations in the chain is almost instantaneous; Anyone, anywhere you can participate (If the issuer allows)And transactions are transparent, which makes them easier to track and automate.
Today, almost $ 300 billion in tokenized assets are in the chain. Boston Consulting Group predicts that the market will reach $ 600 billion by the end of the year and $ 19 billion by 2030. Recent RWA deployments show the blockchains potential to transform traditional markets.
On a bridge of traditional assets and use in the chain, blockchains act as markets, with the typical “chicken and egg” dynamics. Namely, the Issuers want to go to where active users are, and users go to the site of the new and best products.
Ethereum was the natural starting point. Stablecoins such as USDC and USDT first launched there, giving Ethereum the deepest group of tokenized dollars and most of the RWA value in the current chain.
Solana is a main contender for the activity of RWA, and recent launches show the potential of blockchains to quickly transform traditional markets. Kamino Finance, the main application of loans and loans from Solana, allows users to easily borrow against their holdings in Xstocks, Tokenized Actions of Apple, Tesla and other companies. Since Xstocks was launched through blockchains on June 30, Solana has represented an average of approximately 93% of the daily negotiation volume.
Stock chain token volume by blockchain | Source: Dune Analytics
Solana domain in the activity of the global developer and active users (More than double the next chain) It gives an advantage in the courtship of assets of assets, while successfully incorporating them and presenting new products in the chain will reinforce this activity.
In more general terms, Defi continues to grow, with greater diversity in chain products and institutional degree offers. Caling sophisticated portfolios, builders work on products that make up Stablcoins, RWAS and / or performance mechanics to create an attraction in different risk preferences.
Ethereum currently leads the sector, with more $ 94 billion in total value blocked (TVL) and thousands of protocols. While retaining the deepest liquidity in the industry is an advantage, there is more in defi than TVL.
The total value of the solana protocol defi blocked (TVL) Recently exceeded approximately $ 10 billion. In a sign that the TVL reflects real and valuable use, solana applications collectively obtain more tariff income in the chain than all other combined chains. Thanks to its speed and low costs, Solana has been established as the active mall of Defi and constantly leads Ether in decentralized exchange (DEX) Commercial volumes.
Beyond Bitcoin’s cryptographic paper and “digital gold”, both Ethereum and Solana block chains have emerged as a central digital infrastructure, each with different advantages.
Ethereum is the original open computer, where builders first encoded decentralized applications and fundamental institutional projects launched.
The impulse of Defi de Solana is building. It is already the most used chain in the world and a seedbed for innovative Defi products. Like the native token eth of Ethereum, Sol de Solana offers wide exposure to the ecosystem, which means that investors do not need to choose winners of individual applications; Instead, they can participate in general growth.
The long -term success of Ethereum and Solana depends on their home with applications that provide real value and, ultimately, interrupt inherited financial systems. If they can achieve it, then today’s prices may seem attractive entry points.
– Samantha Bohbot, partner and growth director, Rockawayx
Ask an expert
Q. A year in institutional investments in the tendency of Crypto ETFs, how are Canadian banks and pension funds approach?
TO. The 13F presentations of this quarter reveal that trans-chair capital based in Montreal has made notable investments in digital assets. It manages pension assets for Air Canada, as one of the largest corporate pension plans. The pension fund added $ 55 million to a Bitcoin ETF spot.
The institutional adoption of Bitcoin has accelerated during the past year, promoted by a clearer regulatory orientation, the launch of ETF SPOT and the increase in Bitcoin’s recognition as a strategic asset. Annex 1 banks in Canada have more than $ 139 million in funds quoted in the Bitcoin Stock Exchange, underlining the growing institutional demand and long -term positioning.
Q. How could institutional accumulation affect the dynamics of the Bitcoin market?
TO. Last year, ETFS bought approximately 500,000 Bitcoin, while the RED produced 164,250 new bitcoin through its work test consensus. This means that the demand of ETF alone was three times the newly minted offer. In addition, public and private corporations bought 250,000 bitcoins. As governments consider including Bitcoin in their strategic reserves, other entities are exploring Bitcoin’s addition to their corporate treasure bonds.
Q. What will the financial behavior authority be like? (FCA) Is retail retail access to cryptocurrencies in the United Kingdom accelerates retail and institutional adoption?
TO. This marks an important moment for cryptographic products in the retail market as a class of assets that reflects a broader change in the United Kingdom regulatory position towards digital assets. It is a complete reversal of a 2020 decision when the FCA prohibited the notes quoted in cryptocurrency exchange. ETNS must be negotiated in an investment exchange approved by the FCA. The United Kingdom is changing its cryptography approach as the government seeks to grow the economy and support a digital asset industry, sending a strong signal to institutional investors that the United Kingdom is positioning itself as a competitor in the global cryptography market.
– Kevin Tam, specialist in Digital Assets Research
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