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Yahoo
25-07-2025
- Business
- Yahoo
Crypto for Advisors: Blockchain and the Music Industry
Blockchain is reshaping industries beyond finance. In this Crypto for Advisors newsletter, we shift focus from traditional investments to explore a disruptive blockchain use case in the music industry. Inder Phull, CEO and Co-Founder of Pixelynx and creator of KOR Protocol, explains how on-chain music rights and royalties are transforming ownership and why this matters for artists and investors. Then, Ronald Elliot Yung from RaveDAO answers questions about these changes and how they impact investments in Ask an Expert. – Unknown block type "divider", specify a component for it in the ` option Remix, Rights & Revenue: Why Onchain Music Infrastructure Is the Future A fundamental shift, redefining how music is protected, managed, and monetized. Introduction: A Broken Symphony The digital revolution has empowered musicians with unprecedented tools to create, collaborate, and reach global audiences. Unfortunately, this rapid evolution has come with its own set of challenges. While the Internet has rewritten the rules of creation, distribution, and consumption, the methods we use to protect and monetize creative content, such as copyright laws, licensing models, and royalty structures, have not kept pace. In this environment, artists struggle to maintain control of their work, with inadequate attribution and a lack of fair compensation. For advisors, you may have clients in the music industry or investors seeking to invest in these assets. Understanding the evolution of this industry could be a strategic advantage as assets move on-chain. The systems that governed the industry were originally designed in a pre-Internet era when the concepts of global digital rights and licences were yet to be considered. We now find ourselves in a situation where TikTok hits are often born from unauthorized samples, AI-generated music is flooding streaming platforms, and artists struggle to make a living. Legal pathways to capitalize on emerging opportunities, such as AI or UGC virality, remain locked behind gatekeepers, legacy contracts, and unclear ownership data. Enter onchain rights infrastructure: a shift that could rewire how we protect, manage, and monetize music. The Problem: Rights Are Fragmented, and Creators Lose There is a reason why music on social media has yet to generate a revenue stream for artists, why the 'Metaverse' lacks music, and why AI is perceived as a threat. Existing copyright systems do not adequately address the complex web of ownership and usage rights associated with modern applications of music, such as remixing or user-generated content on social media platforms. The current complexity costs the industry billions, as this system often leaves creators underpaid and legally vulnerable. Creators are shifting to owner-created content, where they can track the usage of their creations and consumption, and get paid regardless of where their assets are consumed. The Future: Onchain Rights Infrastructure Onchain rights infrastructure redefines the backend of the music industry. It provides rightsholders with undisputed, verifiable ownership of their work, with rights transparently programmed into the registration. This transparency and programmability enable music to move effortlessly across platforms, applications, and media, automatically tracking attribution, verifying provenance, and eliminating the friction of traditional licensing processes. Artists receive payment instantly, and their rights are enforced in real-time. Imagine if every track came with a smart contract, one that listed the rights holders, the ownership percentages, and the licensing terms in code. If you wanted to use the song in a remix, a sync, or a sample, the contract would tell you what's allowed and automatically distribute royalties. That's what on-chain rights infrastructure makes possible. On a blockchain, rights can be: Transparent — anyone can see who owns what Programmable — remix terms, splits, and conditions are encoded Traceable — derivatives and remixes are tracked in real time Compositional — rights become building blocks, not walls If the music industry wants to capitalize on emerging technology and cater to tomorrow's digital consumers, it will need a more agile and forward-looking approach to music rights management and licensing. Onchain rights infrastructure is the answer. Understanding the shift to on-chain rights infrastructure is no longer niche; it's a key part of the future. Whether you're advising IP holders navigating their royalty flows or helping investors explore music IP as an emerging asset class, being fluent in how rights and revenue can be transparently encoded onchain is vital. Just as streaming reshaped consumption models, on-chain infrastructure is reshaping the ownership system; those who understand it early will be best positioned to grow in the evolving digital economy. - Unknown block type "divider", specify a component for it in the ` option Ask an Expert Q. In a world of corporate festivals and algorithm-driven playlists, how can decentralized models enable new music scenes, community leadership, and fan ownership? Music has always thrived in pockets: underground clubs, bedroom producers, DIY scenes. Blockchain now offers a chance to bring these microcultures to the world, placing influence in the hands of those who live the culture, not just those who monetize it. For investors, the upside is early access to untapped cultural capital and the energy of self-organizing communities. Most users still crave experiences, not just technology. No protocol can manufacture authenticity, and it's easy for on-chain 'ownership' to become performative if it's disconnected from what's happening on the ground. The winning models will get the 'local-to-global' flywheel right: using technology to empower people, not just platforms, and ensuring new voices and collectives receive the recognition and support they need before being absorbed by the next algorithmic trend. Q. What persistent problems can blockchain and AI fix in live events, and what's still unsolved for the music economy? Blockchain finally addresses ticket fraud, opaque splits, and the lack of fan ownership in events. On-chain tickets are tamper-proof and traceable, making resale and royalty flows transparent. AI is cutting through noise by personalizing experiences, automating support, and making sense of the huge, messy flood of fan data most venues still ignore. However, technology alone won't solve the music industry's most profound issues. Scene-building, trust, and curation remain deeply human challenges. No blockchain replaces the hustle of earning credibility, or the magic of a local scene bubbling up in defiance of the mainstream. Even the best AI can't spot next year's genre-defining artist without a pulse on culture itself. For investors and advisors, the risk is buying into the illusion that data and automation alone can drive engagement and loyalty. The most compelling opportunities will blend digital tools with real-world understanding, creating systems that empower communities rather than just optimize transactions. Q. What are the blind spots in the current 'Web3 x Music' hype cycle, and where should advisors exercise caution? There's no shortage of pitch decks promising to 'revolutionize' music with tokens and NFTs. But hype alone can't replace authentic connection, or build the grassroots energy that makes festivals last. Advisors should look beyond user counts or Discord noise and ask: Are local communities actually thriving? Is community governance a real process or just a buzzword? Can this model attract and retain both serious talent and loyal fans? The winners will be platforms that treat culture as a living ecosystem, not a quick flip, and that balance on-chain innovation with the off-chain work of building trust. - Unknown block type "divider", specify a component for it in the ` option Keep Reading Charles Schwab CEO says crypto trading is coming soon for clients. President Trump signed the first U.S. cryptocurrency bill into law during 'crypto week'. JP Morgan is planning to offer bitcoin-backed loans. Sign in to access your portfolio
Yahoo
10-07-2025
- Business
- Yahoo
Crypto for Advisors: Advisors, the Final Frontier
Today's Crypto for Advisors newsletter is written by me! Join me as I reflect on the growth of the crypto industry. Then, Kim Klemballa from CoinDesk Indices answers questions on advisors' minds when it comes to pricing and benchmarking the asset class in 'Ask the Expert.' I hope you enjoy our newsletter. Thank you for letting me be your steward. Thanks to all the amazing 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 ways to access the crypto asset class beyond bitcoin. Join Ric Edelman of DACFP, David LaValle of Grayscale Investments and Andrew Baehr of CoinDesk Indices for an informative Webinar on July 16 from 1-2 p.m. ET. Live webinar only. CE credits available. Learn more and register today. – Unknown block type "divider", specify a component for it in the ` option Two years ago, I took on the role of editor for Crypto for Advisors at a pivotal moment. It was mid-2023, and the cryptocurrency industry was in the midst of a deep winter. The collapse of major lending platforms and the implosion of FTX had sent shockwaves through the markets. The U.S. regulatory climate was hostile, marked by enforcement-first tactics, and confidence was shaken. But even then, the undercurrents of something bigger were impossible to ignore. Fast forward to today, and we're standing on the edge of what Bank of America calls a 'once-in-a-millennium transformation.' They're not talking about memes or speculation. They're talking about the reshaping of global financial infrastructure, economic models, and digital ownership — and it's being driven by crypto. An Ode to Bitcoin: The Genesis 'Bitcoin belongs in the same breath as the printing press and artificial intelligence.' — Bank of America: Bitcoin, born in the aftermath of the 2008 financial crisis, created something revolutionary: a decentralized, fixed-supply digital currency. It belonged to no government, no corporation, and no central authority. From there, a movement began. Early adoption saw students tinkering with GPUs, developers building wallets, entrepreneurs launching exchanges, and miners chasing cheap power around the globe. A technological and economic revolution took shape. Today, we're seeing bitcoin ETFs from the world's largest asset managers — BlackRock, Fidelity and Grayscale being the top three by AUM — and even nation-state adoption as countries like the U.S. and UAE race to become global crypto hubs. It's an unparalleled acceleration of financial innovation. The Rise of Ethereum and Smart Contracts Bitcoin sparked the fire, but Ethereum — and the smart contract innovation it introduced — brought utility, programmability, and the ability to tokenize everything: real estate, carbon credits, fine art, identity, equities, and even yield-generating protocols. While Bitcoin and Ethereum dominate headlines, tens of thousands of digital assets exist. And while investing grabs the spotlight, blockchain is quietly transforming supply chains, intellectual property, finance, and more. Public companies are adding crypto to their balance sheets. Over 140 public firms have announced bitcoin reserves. Exchanges like Coinbase and Kraken will offer tokenized equities, while retail platforms like Robinhood expand their crypto products. Access points are multiplying: direct-to-consumer platforms, ETFs (now in the hundreds), tokenized funds, and direct ownership. And the list keeps growing. The Landscape Has Changed — Are You Adopting? Only a handful of advisors were very early adopters but that's slowly evolving. There's broadening recognition of the opportunity — to support clients, protect relationships, and win new business. It's becoming increasingly common to hear from advisors that they are winning clients simply because they're willing to talk about bitcoin. On the other hand, the lack of regulation, prohibitive firm policies, digital assets volatility behavior and overall uncertainty with a new asset class has caused hesitancy. Moreover, advisors have a lot to pay attention to —- and now learning a new — and always changing — asset class is added to the list! Despite all of this, clients want to access digital assets. Recent Coinshares survey data highlights that clients want the help of their advisors and expect them to be knowledgeable in digital assets. More than 80% of the respondents answered that they would be more likely to work with an advisor that offers digital asset guidance, and 78% of non-crypto investors say they'd turn to an advisor if crypto support were available. Notably, almost 90% said they planned to increase their crypto exposure in 2025. A Call to Action Blockchain is an infrastructure, crypto is more than an asset class and the technology extends well beyond investing. The industry is maturing,regulation is advancing andthe world's largest institutions are developing on blockchain. As U.S. Treasury Secretary Scott Bessent said recently, 'Crypto is the most important phenomenon happening in the world today.' You don't need to be a crypto trader or blockchain developer. But if you're a fiduciary — a guide, a planner — you owe it to your clients to understand what's happening. Education is key. In two years of curating this newsletter, I've watched sentiment shift from skepticism to curiosity to strategic integration. And we're just getting started. I'm thrilled to be here with you on your crypto journey. Connect with me for ideas on future topics you'd like to see addressed. - Sarah Morton, chief strategy officer, MeetAmi Innovations Inc. Unknown block type "divider", specify a component for it in the ` option Q. Why is the same digital asset priced differently on each exchange? A. Equities 'plug in' to an exchange, allowing for one, centralized price. Crypto, on the contrary, is 'decentralized.' This means there's not one 'plug' to price a digital asset. While crypto prices are based on supply and demand (as well as other factors), each exchange operates independently and therefore prices can vary between different exchanges. Q. How can I find reliable pricing data for digital assets? A. There are many digital asset index and data providers. Look for pricing that (1) comes from a reputable and trusted provider with a proven track record in digital assets, (2) has a transparent and rules-based approach to construction, and (3) lays out thoughtfully constructed criteria for how the pricing is captured. The index methodology is incredibly important. For example, if selection criteria of an index included 'trading on more than one eligible exchange' with eligibility thoughtfully designed, then in the case of the FTX collapse, FTT (the exchange token of FTX) wouldn't have made it into the index. Thoughtful construction can rule out bad actors. Q. Why are people using bitcoin to measure the entire digital asset landscape? A. While bitcoin now accounts for 65% of the total digital asset market, there were times bitcoin was less than 40% of the market. One asset should not be a benchmark for the entire asset class. Diversification is key for institutional investors to manage volatility and capture broader opportunities. Effective benchmarking must serve multiple constituencies—enabling performance evaluation, supporting investment strategies, and setting industry standards for everyone. Indices such as CoinDesk 5 (CD5), CoinDesk 20 (CD20), CoinDesk 80 (CD80), CoinDesk 100 (CD100) and CoinDesk Memecoin (CDMEME) were constructed to meet the needs of those looking to benchmark, trade and/or invest in the ever-evolving digital asset landscape. - Kim Klemballa, CoinDesk Indices Unknown block type "divider", specify a component for it in the ` option Keep Reading CoinDesk breaks down the June crypto markets and ETF/ETP flows. Brought to you by ETF Express and Trackinsight. Digital Assets: Quarterly Review and Outlook is now available! This report by CoinDesk includes a Q2 recap, Q3 outlook and dive into digital assets dominating headlines. Crypto Insights Group released, 'Mapping Digital Assets in Institutional Portfolios.' This report meets you at the intersection of allocators, fund managers and data. VanEck CEO says more Americans have exposure to bitcoin than gold.
Yahoo
13-06-2025
- Business
- Yahoo
Crypto for Advisors: The Relationship Between Bitcoin and Altcoins
In today's Crypto for Advisors, Gregory Mall, chief investment officer from Lionsoul Global, writes about bitcoin's current rally, and how it historically has and could potentially impact altcoins. Then, Kevin Tam looks at crypto trends, 13-F filings and institutional adoption in Ask an Expert. – Unknown block type "divider", specify a component for it in the ` option On May 22, bitcoin (BTC) marked a historic moment, reaching a new all-time high, briefly surpassing the levels seen earlier this year. While prices have since consolidated, BTC remains within striking distance of its all-time high — a feat achieved despite lingering macro uncertainties, low trading volumes, and general market skepticism. Meanwhile, most altcoins remain far from their respective all-time highs. As of early June, Ethereum (ETH) is still about 20% below its November 2021 peak, and Solana (SOL) sits more than 30% below its former highs. This divergence highlights what some market observers are calling the "most hated rally"—a quiet, low-participation surge in bitcoin that caught many off guard. What Drove the BTC Rally? Three key factors contributed to the recent BTC breakout: Central Bank Optimism: Futures markets suggest that rate cuts from the Federal Reserve are likely in the second half of 2025, with the eurozone even further ahead—now on its seventh consecutive rate cut. This easing backdrop has revived risk appetite across assets, particularly among institutional allocators. With tariff fears in the rearview mirror, the overall inflationary outlook has significantly improved in recent weeks. Institutional Inflows: Spot bitcoin ETFs, approved earlier this year, continue to absorb flows. While daily volumes have tapered from launch-week highs, net inflows have remained consistently positive, particularly from fee-sensitive RIA and private wealth channels. Year to date, cumulative inflows exceed $16 billion, with May recording the largest inflow this year. At the same time, MicroStrategy and other companies have continued to pile corporate treasury assets into bitcoin. Easing Political Risks: Fading tariff tensions and improving global trade sentiment helped stabilize broader markets, allowing risk assets like bitcoin to resume their upward trend. Despite these tailwinds, the rally occurred on relatively thin volumes. BTC Dominance Rising — But History Rhymes Bitcoin dominance — the percentage of total crypto market cap made up by BTC — has now climbed above 54%, up from about 38% in late 2022. Historically, BTC dominance peaks before altcoins begin to outperform. During the 2017 and 2021 cycles, altcoin rallies lagged the BTC all-time highs by two to six months. Source: TradingView If history holds, the rotation from bitcoin into altcoins may already be underway. ether's recent outperformance — posting an 81% rally since its April lows — is a sign that sentiment is starting to spill over from bitcoin to the altcoin market. Altcoin Season Ahead? While the term "altseason" is often thrown around carelessly, there are some real indicators worth watching: Institutional Broadening: Allocators who entered BTC via ETFs are now evaluating broader exposure. Equal-weight or smart beta indexes that offer diversified exposure to Layer 1s, DeFi, and infrastructure tokens are gaining traction. L1 Innovation and Narrative Cycles: Layer 1 ecosystems like Solana, Avalanche, and Near continue to develop real throughput improvements, which are increasingly relevant as user demand for on-chain activity returns. DeFi Resurgence: As of early June 2025, the total value locked in DeFi protocols has surpassed $117 billion, marking a significant recovery from the April slump. According to DeFiLlama, the total value locked across all DeFi pools has increased by 31% since its April lows. Risk Rotation: In traditional markets, as the bull market matures, investors rotate from large caps to small/mid caps. Crypto is no different. Bitcoin may be the starting point, but not the end. A Word of Caution Although there are significant diversification benefits associated with crypto investing, it is also fair to say that crypto is still behaving largely as a risk-on asset class. As highlighted by the latest OECD report, the global economic landscape is becoming increasingly fragile. Heightened trade restrictions, tighter credit conditions, declining business and consumer confidence, and persistent policy uncertainty are all weighing on growth prospects and increasing the risks of a sell-off of speculative assets that includes crypto. Key Takeaways for Advisors Expect Rotation: If prior cycles are a guide, altcoins may lag BTC but tend to rally with a delay. Advisors should consider this when rebalancing portfolios. Diversification Matters: Equal-weight crypto baskets or thematic exposures (e.g., Layer 1s, DeFi) may help capture upside without betting on a single asset. Stay Objective: While price action often drives client interest, fundamentals — from network activity to developer momentum — should remain the north star for allocation decisions. Bitcoin's new all-time high is certainly a milestone. However, it may also be a signal: the next phase of the cycle could belong to the broader crypto asset class. Advisors who understand the timing and mechanics of market rotations are best positioned to guide clients through the next leg. Legal Disclaimer: Information presented, displayed, or otherwise provided is for educational purposes only and should not be construed as investment, legal, or tax advice, or an offer to sell or a solicitation of an offer to buy any interests in a fund or other investment product. Access to the products and services of Lionsoul Global Advisors is subject to eligibility requirements and the definitive terms of documents between potential clients and Lionsoul Global Advisors, as they may be amended from time to time. - Unknown block type "divider", specify a component for it in the ` option Q: One year into the trend, how are Canadian banks and pension funds approaching bitcoin? A: This recent quarters 13F filing reveal that Montreal based Trans-Canada Capital has made notable investments in digital assets. They manage the pension assets for Air Canada, as one of the largest corporate pensions plans Canada. The pension fund added $55 million in spot bitcoin ETF. Institutional adoption of bitcoin has accelerated over the past year, driven by clearer regulatory guidance, the launch of spot ETFs and increasing recognition of bitcoin as a strategic asset. Schedule 1 banks in Canada are holding more than $137 million in bitcoin exchange traded funds, underscoring growing institutional demand and long-term positioning. Q: How might institutional accumulation affect bitcoin's market dynamic? A: Last year ETFs bought approximately 500,000 bitcoin, while the network produced 164,250 new bitcoins through its proof of work consensus. This means ETF demand alone was three times higher than the newly minted supply. Additionally, public and private corporations purchased 250,000 bitcoin. As governments consider including bitcoin in their strategic reserve, other entities are exploring adding bitcoin to their corporate treasury. Q: How will the Financial Conduct Authority (FCA) greenlighting retail access to crypto exchange-traded notes (ETNs) in the UK accelerate the retail & institutional adoption? A: This marks an important moment for in crypto products in the retail market as asset class that reflects a broader shift in the UK's regulatory stance toward digital assets. It is a complete reversal from a 2020 decision when the FCA banned crypto exchange trades notes. ETNs will need to be traded on an FCA-approved investment exchanges. The UK is shifting its approach to crypto as the government seeks to grow the economy and support a digital assets industry. They are sending a strong signal to institutional investors that the UK is positioning itself as a competitor player in the global crypto market. - Kevin Tam Unknown block type "divider", specify a component for it in the ` option The Digital Asset Month in Review for May provides highlights and insights on global crypto ETFs/ETPs. By Joshua de Vos of CoinDesk, in partnership with ETF Express and Trackinsight. Unlike many U.S. States that are creating crypto friendly laws, Connecticut says NO, with the recent bill HB702 that bans the state accepting or investing in crypto. For the first time ever, the price of bitcoin has stayed over $100,000 for 30-days, marking a new milestone for the cryptocurrency. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
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Crypto for Advisors: Breaking Down Solana
In today's Crypto for Advisors, Josh Olszewicz from Canary Capital provides a breakdown of Solana - where it came from, and what's happening with the asset today. Then, Alec Beckman from Psalion answers questions about Solana's history and considerations for investors in Ask an Expert. – Unknown block type "divider", specify a component for it in the ` option Solana has emerged as a formidable player in the blockchain arena, showcasing remarkable resilience in the face of significant challenges. Despite setbacks such as the FTX collapse and network outages, Solana has rebounded impressively, with its native token, SOL, experiencing substantial growth since its lows in late 2022. The platform's appeal lies in its high-speed, low-cost transactions, positioning it as a preferred choice for both developers and users. However, concerns about centralization persist, stemming from the network's reliance on a limited number of validators and high hardware requirements. While Solana operates on a proof-of-stake consensus mechanism, offering scalability and staking yield, the legal classification of the SOL token remains a contentious issue in the United States, with the Securities and Exchange Commission yet to provide definitive guidance. Amid the global disruption of the COVID-19 pandemic, Solana Labs launched the Solana blockchain and its native token, SOL, in March 2020. Backed by leading venture capital firms including a16z, Jump, Multicoin Capital and Polychain Labs, as well as the now-defunct Alameda Research, the platform quickly differentiated itself through high-speed, low-cost transactions, offering a compelling alternative to legacy Layer 1 protocols such as Ethereum (ETH), Binance Smart Chain (BNB) and Tron (TRX). Competing platforms, such as Avalanche (AVAX), Polkadot (DOT), and NEAR Protocol (NEAR), followed later that year, intensifying the race for smart contract dominance. Solana operates on a proof-of-stake consensus mechanism, which allows users to secure the network and participate in governance by staking tokens. Unlike Bitcoin's proof-of-work, proof-of-stake networks such as Solana rely on validators — entities entrusted with maintaining the ledger and processing transactions. Solana's governance is partially influenced by stake-weighted voting, similar to a representative democracy, where the validators with the most staked assets wield the most influence. Solana's early momentum was fueled by endorsements from Sam Bankman-Fried and the now-defunct FTX exchange, which portrayed Solana as a faster and more scalable alternative to Ethereum. Bankman-Fried's entities invested heavily in the ecosystem and built significant infrastructure around it. However, the collapse of FTX and Alameda Research in late 2022 revealed material centralization risks. Both firms held significant positions in SOL, and their bankruptcy triggered a sharp sell-off, raising questions about token distribution and ecosystem resilience. In 2023, Solana faced further scrutiny when the SEC, under Chair Gary Gensler, identified SOL as a potential unregistered security in lawsuits against Binance and Coinbase. Robinhood subsequently delisted SOL, causing the asset to plummet to an extreme low, which was only surpassed by the FTX fallout. Nonetheless, SOL appreciated nearly 700% between October 2023 and March 2024, reflecting robust retail demand and increasing developer activity despite regulatory ambiguity. The regulatory tide began to shift in late 2024. Robinhood relisted SOL in November, citing evolving policy guidance and customer interest. In early 2025, the SEC, under its newly appointed Chair Paul Atkins, dismissed its case against Coinbase and paused proceedings against Binance. While Solana's classification remains unresolved, the industry anticipates a revised framework that could allow blockchain projects to be deemed "sufficiently decentralized," thereby sidestepping securities law constraints. The recent approval of crypto-based ETFs further signals growing regulatory acceptance and may provide a pathway to broader institutional involvement. Despite previous setbacks, Solana has emerged as a leading platform for retail activity, particularly in the fast-growing sectors of meme coins and NFTs. Phantom, a self-custody wallet built for Solana, reported 10 million monthly active users in 2024, more than 850 million transactions, and 24 million mobile app downloads. One notable catalyst was the January 2025 launch of the TRUMP coin, which coincided with SOL reaching an all-time high of nearly $300. Source: Bloomberg Terminal Although network reliability concerns persist, with seven temporary blockchain outages since 2020, Solana consistently ranks among the top blockchains in terms of daily active users, transaction volume, decentralized exchange activity and fee generation. However, in decentralized finance and real-world asset applications, Ethereum remains dominant, with Solana still trailing in key metrics, including total value locked and circulating stablecoins. Source: From an investment perspective, SOL has historically traded as a high-beta asset relative to bitcoin, resembling the behaviour of equities such as Strategy. Since late 2024, some firms have begun replicating the Strategy playbook, raising capital to acquire SOL for their balance sheets. While this may increase short-term demand, long-term efficacy will depend on sustained network adoption, regulatory clarity and institutional trust. - Unknown block type "divider", specify a component for it in the ` option Q. Why are investors interested in Solana? Solana stands out for its high speed, low fees, and growing ecosystem: Performance – Solana can handle up to 65,000 transactions per second with finality in seconds, making it ideal for real-time applications such as trading, gaming, and payments. Cost Efficiency – Fees are consistently under a cent, making it appealing for retail-driven use cases. Ecosystem Growth – Platforms like Jupiter (DeFi) and Helium Mobile (telecom) are expanding real-world use. Big-Name Backing – Partnerships with Visa and Shopify have reinforced Solana's position as a serious layer-1 contender. With a loyal community and strong momentum, Solana has emerged as a high-beta play on blockchain usability and scalability. Q. What should investors watch when evaluating Solana? Investors should keep an eye on both technical and ecosystem fundamentals: Network Stability – Following a history of outages, Solana is introducing Firedancer, a new validator client designed to enhance reliability and throughput. On-Chain Metrics – Daily active users exceed 1 million. DeFi TVL has recently surpassed $4 billion, driven by strong NFT volumes and app usage. Tokenomics – SOL has a declining inflation schedule and high staking participation (~70% of supply is staked). Regulatory Momentum – ETF applications from VanEck and 21Shares are pending, and any U.S. approval would be a significant milestone and create institutional inflows to Solana. Tracking development activity, usage, and upgrades is key to understanding Solana's staying power. Q. What are the biggest risks of investing in Solana? Solana carries high upside potential, but also meaningful risks: Past Instability – The network faced multiple outages between 2021 and 2023, which hurt investor confidence. Stability has improved, but remains under scrutiny. Regulatory Pressure – SOL was mentioned in SEC lawsuits against Coinbase and Binance in 2023 as a possible unregistered security. Centralization Concerns – A significant portion of tokens went to insiders, and the validator set is significantly less decentralized than Ethereum's. Market Volatility – Solana is closely tied to speculative trends, such as memecoins and NFT booms, leading to sharp price fluctuations. Institutional Builds – A significant increase in institutional building is occurring on the Ethereum blockchain. For all its innovation, SOL has risks driven by both fundamentals and narrative momentum. - Unknown block type "divider", specify a component for it in the ` option Stifel Financial Corp. greenlights advisors to invest in bitcoin for clients.. The U.S. SEC Commissioner Peirce confirmed that banks can include crypto services. Discover how nearly 100 crypto exchanges rank on the industry's most trusted risk assessment covering security, regulatory compliance and market quality: CoinDesk's Latest Exchange Benchmark Rankings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
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Crypto for Advisors: Crypto Universe
In today's Crypto for Advisors, Fabian Dori, Chief Investment Officer at Sygnum Bank, explores why crypto is more than just an asset class and looks at the institutional adoption of decentralized finance. Then, Abhishek Pingle, co-founder of Theo, answers questions about how risk-adverse investors can approach decentralized finance and what to look for in Ask an Expert. – Unknown block type "divider", specify a component for it in the ` option Moody's recently warned that public blockchains pose a risk to institutional investors. At the same time, U.S. bitcoin ETFs are drawing billions in inflows. We're seeing the start of a long-awaited shift in institutional adoption. But crypto's real potential lies far beyond passive bitcoin exposure. It's not just an asset class — it's an asset universe, spanning yield-generating strategies, directional plays, and hedge fund-style alpha. Most institutions are only scratching the surface of what's possible. Institutional investors may enhance their risk-return profile by moving beyond a monolithic view of crypto and recognizing three distinct segments: yield-generating strategies, directional investments, and alternative strategies. Like traditional fixed income, yield-generating strategies offer limited market risk with low volatility. Typical strategies range from tokenized money market funds that earn traditional yields to approaches engaging with the decentralized crypto finance ecosystem, which deliver attractive returns without traditional duration or credit risk. These crypto yield strategies may boast attractive Sharpe ratios, rivalling high-yield bonds' risk premia but with different mechanics. For example, returns can be earned from protocol participation, lending and borrowing activities, funding rate arbitrage strategies, and liquidity provisioning. Unlike bonds that face principal erosion in rising rate environments, many crypto yield strategies function largely independently of central bank policy and provide genuine portfolio diversification precisely when it's most needed. However, there is no such thing as a free lunch. Crypto yield strategies entail risks, mainly centered around the maturity and security of the protocols and platforms a strategy engages with. The path to institutional adoption typically follows three distinct approaches aligned with different investor profiles: Risk-averse institutions begin with yield-generating strategies that limit direct market exposure while capturing attractive returns. These entry points enable traditional investors to benefit from the unique yields available in the crypto ecosystem without incurring the volatility associated with directional exposure. Mainstream institutions often adopt a bitcoin-first approach before gradually diversifying into other assets. Starting with bitcoin provides a familiar narrative and established regulatory clarity before expanding into more complex strategies and assets. Sophisticated players like family offices and specialized asset managers explore the entire crypto ecosystem from the outset and build comprehensive strategies that leverage the full range of opportunities across the risk spectrum. Contrary to early industry predictions, tokenization is progressing from liquid assets like stablecoins and money market funds upward, driven by liquidity and familiarity, not promises of democratizing illiquid assets. More complex assets are following suit, revealing a pragmatic adoption curve. Moody's caution about protocol risk exceeding traditional counterparty risk deserves scrutiny. This narrative may deter institutions from crypto's yield layer, yet it highlights only one side of the coin. While blockchain-based assets introduce technical risks, these risks are often transparent and auditable, unlike the potentially opaque risk profiles of counterparties in traditional finance. Smart contracts, for example, offer new levels of transparency. Their code can be audited, stress-tested, and verified independently. This means risk assessment can be conducted with fewer assumptions and greater precision than financial institutions with off-balance-sheet exposures. Major decentralized finance platforms now undergo multiple independent audits and maintain significant insurance reserves. They have, at least partially, mitigated risks in the public blockchain environment that Moody's warned against. While tokenization doesn't eliminate the inherent counterparty risk associated with the underlying assets, blockchain technology provides a more efficient and resilient infrastructure for accessing them. Ultimately, institutional investors should apply traditional investment principles to these novel asset classes while acknowledging the vast array of opportunities within digital assets. The question isn't whether to allocate to crypto but rather which specific segments of the crypto asset universe align with particular portfolio objectives and risk tolerances. Institutional investors are well-positioned to develop tailored allocation strategies that leverage the unique characteristics of different segments of the crypto ecosystem. - Unknown block type "divider", specify a component for it in the ` option Q: What yield-generating strategies are institutions using on-chain today? A: The most promising strategies are delta-neutral, meaning they are neutral to price movements. This includes arbitrage between centralized and decentralized exchanges, capturing funding rates, and short-term lending across fragmented liquidity pools. These generate net yields of 7–15% without wider market exposure. Q: What structural features of DeFi enable more efficient capital deployment compared to traditional finance? A: We like to think of decentralized finance (DeFi) as 'on-chain markets'. On-chain markets unlock capital efficiency by removing intermediaries, enabling programmable strategies, and offering real-time access to on-chain data. Unlike traditional finance, where capital often sits idle due to batch processing, counterparty delays, or opaque systems, on-chain markets provide a world where liquidity can be routed dynamically across protocols based on quantifiable risk and return metrics. Features like composability and permissionless access enable assets to be deployed, rebalanced, or withdrawn in real-time, often with automated safeguards. This architecture supports strategies that are both agile and transparent, particularly important for institutions that optimize across fragmented liquidity pools or manage volatility exposure. Q: How should a risk-averse institution approach yield on-chain? A: Many institutions exploring DeFi take a cautious first step by evaluating stablecoin-based, non-directional strategies, as explained above, that aim to offer consistent yields with limited market exposure. These approaches are often framed around capital preservation and transparency, with infrastructure that supports on-chain risk monitoring, customizable guardrails, and secure custody. For firms seeking yield diversification without the duration risk of traditional fixed income, these strategies are gaining traction as a conservative entry point into on-chain markets. - Abhishek Pingle, co-founder, Theo Unknown block type "divider", specify a component for it in the ` option Bitcoin reached a new all-time high of $111,878 last week. Texas Strategic Bitcoin Reserve Bill passed the legislature and advances to the governor's desk for signature. U.S. Whitehouse Crypto Czar David Sacks said regulation is coming in the crypto space in August.
