Play

Right Now, Crypto Deserves Your Attention

We think this is a moment to focus on the opportunities in crypto

Consider these significant tailwinds

Macro: Core US Inflation is falling, US Federal Reserve likely to begin a rate cutting cycle soon, US economy appears to be making a soft landing…Bullish for risk assets, including crypto.

ETF Effect: Ethereum (ETH) ETFs are expected to begin trading July 23rd. Bitcoin ETFs have been the most successful ETF launches ever. Despite this, ETH Twitter/X sentiment is at YTD lows according to Kaito. No matter the initial flows into ETH ETFs, we think sponsors have a huge incentive to offer more crypto products. One crypto ETF is novelty, but two is an asset class.

Performance of Largest Tokens vs All Others at an Extreme: 2024 crypto markets, like US equity markets, have been led by the top market caps. Outperformance of the Market Vector Digital Asset 100 market cap weighted index vs equal weighted index is at extreme levels relative to past, reminiscent of the “Magnificent 7″ in equities. But this may be changing. As of yesterday (July 16th), the Russell 2000 Index was +10.3% in 4 days, while the S&P 500 was up <1%. We think a similar reversal is likely in crypto, with smaller tokens taking the lead from here.

Many Tokens Down YTD: While Bitcoin and Ethereum are up over 50% YTD, many tokens are down significantly. Of the top 50* tokens by market cap, only 22 are up YTD—28 are down, with 21 of those down -20% or more. *Excluding stablecoins, exchange tokens, and memecoins