Coinshares: Digital Asset Thematics & Sectors September 9, 2021
September 2021 - Crypto
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by James Butterfill, Meltem Demirors & Daniel Masters
Executive Summary
At CoinShares, we have been investing in crypto assets for the last seven years. While the short term cycles in crypto have drawn both awe and ridicule from investors, we have stayed focused on the long term narrative, and formed our firm around this perspective. We need to have a perspective on whether the world will be different as a result of crypto, and if yes - as we believe, how to position your portfolio around that change.
Over the last nine months, crypto assets have grown exponentially, growing from an aggregate market cap of less than one trillion dollars to over US$2.5 trillion. While the staggering rally has been exciting, the price is actually the least exciting thing about crypto assets. Investor positioning highlights individuals favouring technology and a global, distributed, digital financial system.
We summarize the trend for crypto using a framework we call the 3Ds - digitization, driverless banking, and distribution. Taken together, these three trends are fundamentally changing our global financial infrastructure, the profitability of our financial institutions, and the very fabric of our capital markets.
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