The crypto newsletter for advisers is written by me! Join me while I think about the growth of the cryptographic industry. Then, Kim Klemballa de Coindesk Indices answers questions about the minds of advisers with regard to the prices and comparative analysis of the asset class in “Ask the expert”.
I hope you enjoy our newsletter. Thank you for allowing me to be your steward. Thank you to all the incredible contributors who share their stories week after week. I look forward to where we will be in 2 years.
Webinar alert: Explore the digital asset market and the means to access the class of cryptographic assets beyond Bitcoin. Join Ric Edelman from Dacfp, David Lavalle by Grayscale Investments and Andrew Baehr from Coindesk Indices for an informative webinar on July 16 from 1 p.m. to 2 p.m. he. Live webinar only. This available credits. Learn more and register today.
– Sarah Morton
Two years later, and just start
Two years ago, I played the role of the crypto publisher for advisers at a pivotal moment. It was 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 American regulatory climate was hostile, marked by tactics first in application, and confidence was shaken.
But even then, the currents of something greater were impossible to ignore. Quick advance until today, and we are on the verge of what Bank of America calls a “transformation once in a millennium”. They don’t talk about memes or speculation. They speak of the reshaping of global financial infrastructure, economic models and digital property – and it is motivated by the crypto.
An ode to bitcoin: Genesis
“Bitcoin belongs to the same breath as printing and artificial intelligence.” – Bank of America:
Bitcoin, born in the aftermath of the 2008 financial crisis, created something revolutionary: a decentralized and fixed digital currency. He did not belong to any government, no business and no central authority.
From there, a movement began. Early adoption has seen students tinkering with GPUs, developers who build portfolios, entrepreneurs launching exchanges and minors chasing cheap power worldwide. A technological and economic revolution has taken shape.
Today, we see FNB Bitcoin of the largest asset managers in the world – Blackrock, Fidelity and Grayscale being the first three by AUM – and even the adoption of the nation state while countries like the United States and the United Arab Emirates become global crypto hubs. This is an unprecedented acceleration of financial innovation.
The rise of Ethereum and Smart contracts
Bitcoin triggered the fire, but Ethereum – and the intelligent contract innovation that he introduced – brought the usefulness, programmability and the ability of all tokensiner: real estate, carbon credits, fine arts, identity, actions and even protocols generating yields.
While Bitcoin and Ethereum dominate the titles, tens of thousands of digital assets exist. And while the investment takes the spotlight, the blockchain discreetly transforms supply chains, intellectual property, finance, etc.
Public companies add crypto to their balance sheets. More than 140 public companies have announced Bitcoin reserves. Exchanges like Coinbase and Kraken will offer token actions, while retail platforms like Robinhood are broadening their cryptographic products. Access points are multiplying: direct platforms for consumers, ETF (now in the hundreds)Tokenized funds and direct property. And the list continues to grow.
The landscape has changed – Do you adopt?
Only a handful of advisers were very early adopters, but it changes slowly. There is recognition of the opportunity – to support customers, to protect relationships and to gain new business. It becomes more and more common to hear advisers that they earn customers simply because they are ready to speak of Bitcoin.
On the other hand, the lack of regulation, the prohibitive policies of companies, the volatility behavior of digital assets and the global uncertainty with a new class of assets have caused hesitation. In addition, advisers have a lot to be careful – and now learning a new class of assets – and always changing – is added to the list! Despite all this, customers want to access digital assets. Recent data from the Coinshares survey point out that customers want the help of their advisers and expect them to be well informed of digital assets. More than 80% of respondents replied that they would be more likely to work with an advisor who offers advice on digital assets, and 78% of non -cripto investors say they turn to an advisor if crypto 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 asset class and technology extends far beyond investment.
The industry matures, the regulations are progressing and the largest institutions in the world are developing on blockchain. As the American secretary of the Treasury recently said, Scott Bessent, “Crypto is the most important phenomenon in the world today.”
You don’t need to be a crypto trader or a blockchain developer. But if you are a trustee – a guide, a planner – you need your customers to understand what is going on. Education is the key.
In two years to organize this newsletter, I saw the feeling move from skepticism to curiosity to strategic integration. And we just start. I am delighted to be here with you during your cryptographic journey. Connect with me for ideas on future subjects you would like to see addressed.
– Sarah Morton, Director of Strategy, Meetami Innovations Inc.
Ask an expert
Q. Why is the same digital asset a price differently with each exchange?
A. Actions “connect” to an exchange, allowing a centralized price. The crypto, on the contrary, is “decentralized”. This means that there is not a “mouth” to assess a digital asset. While cryptography prices are based on supply and demand (as well as other factors)Each exchange works independently and therefore prices can vary between different exchanges.
Q. How can I find reliable price data for digital assets?
A. There are many index and digital asset data suppliers. Look for prices that (1) comes from a renowned and confidence supplier with a experienced experience in digital assets, (2) has a transparent approach based on construction rules, and (3) presents criteria in a reflected manner for the way the price is captured. The index methodology is incredibly important. For example, if the criteria for selecting an index included “discussing more than one eligible Exchange »With the admissibility in a reflected way, then in the case of the FTX collapse, FTT (The FTX exchange token) would not have entered the index. Refleted construction can exclude bad actors.
Q. Why do people use Bitcoin to measure the entire landscape of digital assets?
A. Although Bitcoin now represents 65% of the total digital asset market, Bitcoin was less than 40% of the market. An asset should not be a reference for the entire asset class. Diversification is essential for institutional investors in order to manage volatility and seize wider opportunities. Effective comparative analysis must serve several constituencies – allowing performance assessment, supporting investment strategies and establishing industry standards for everyone.
Indices such as Coindesk 5 (CD5)Coindesk 20 Coindesk 80, Coindesk 100 and Coindesk Memecoin have been built to meet the needs of those who seek to compare, exchange and / or invest in the landscape of constantly evolving digital assets.
– Kim Klemballa, Coindesk Indices
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