Exploring On-Chain Investment Tools in Crypto for Advisors

Jonathan Stoker Dec 07, 2023, 18:15pm 165 views

Exploring On-Chain Investment Tools in Crypto for Advisors

The Advancements of Web3 and the Rise of On-Chain Investment Products

With Web3 advancements stimulating innovative changes across all industries, Traditional Finance (TradFi) is inevitably following the trend. An upturn in the creation and on-chain trading of investment products in a tokenized format is anticipated. The following discourse explores how these products operate and gives an insight into the current state of the industry in the aforementioned evolution.

Investing in Digital Assets: The Changing Landscape

Investors are discovering new methods to invest in digital assets. Jordan Tonani from Index Coop gives an insight into on-chain index products, shedding light on how these products work, and the exposure they offer to decentralized finance (DeFi). Insights about the industry are also provided by Mike Cavanaugh from Regiment in the Ask an Expert section.

Crypto for Advisors: Unpacking Digital Assets

Will On-chain Diversified Indexes gain traction? In the past 50 years, index products have become the main avenue for people to gain exposure to diversified asset baskets. As one of the most significant themes in digital assets, on-chain products provide easy, diversified, and accessible exposure, especially for constituencies previously overlooked globally.

Despite its great potential, the sector currently constitutes just .07% of the overall crypto market. However, with the growing interest in digital assets, advisors need to familiarize themselves with the expanding options in this category.

Expert Opinions

If the SEC approves a spot bitcoin ETF, what implications could this have for other popular cryptocurrencies? Also, how has the sharp rebound in the broader crypto market been perceived - as a broader warming sentiment about crypto or anticipation of a spot bitcoin ETF approval?

Additionally, apart from payments, what other use cases for cryptocurrencies have captured attention? The tokenization of real assets is creating waves. Projects leveraging blockchain technology to facilitate smoother transactions across various industries are on the rise.

What to Look Forward To

Blackrock has received seed funding for ETF, signaling a significant step towards bitcoin spot ETF readiness. A federal judge recently criticized the Securities and Exchange Commission for "materially false" asset seizure claims. Moreover, BitcoinBitcoin$42,260 -0.64% reached a new 2023 peak of $43K, a height unseen since May 2022.

Edited by Jonathan Stoker

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