7 out of 10 professional investors forecast institutions will hold 60% of digital assets within seven years
Hardware providers and digital payment sector will be major growth areas
Grayscale Future of Finance UCITS ETF (ticker: GFOF) is listed on select exchanges across Europe
15th June 2022, Institutional investors are set to replace retail investors as the major holders of digital assets, according to new research1 from Grayscale Investments®, the world’s largest digital currency asset manager.2
Its international study found more than 7 out of 10 (71%) of professional investors believe institutions will hold 60% of digital assets within seven years, reversing the current status where institutions hold around 3% of digital assets and retail investors 97%.
The research among professional investors who control $182.5 billion assets under management found almost total agreement that institutions will replace retail investors as the main holders of digital assets – only 4% said it will never happen.
Institutional interest is being driven by a range of factors, the research found, but key drivers include hardware providers such as Canaan which supplies servers and processors for digital mining being able to expand into cloud computing capital expenditure.3
Around three-quarters (71%) of investors believe hardware providers will take a bigger share of the predicted $55 billion spending beyond the digital asset mining industry.4
They also believe the digital payment platform sector will grow strongly – on-chain payment volumes reached $25 trillion across stablecoins, Bitcoin, and Ethereum last year5 but 70% of investors believe they will be worth $30 trillion or more by 2030. One in three (32%) believe it will be worth more than $40 trillion – more than the credit card sector.6
Please remember that past performance is not indicative of future performance.
Grayscale, which conducted the research with fund managers, wealth managers, institutions, and pension funds in the UK, Germany, Italy, France, Switzerland, Denmark, Norway, and Sweden, has recently listed its first European ETF, Grayscale Future of Finance UCITS ETF (ticker: GFOF), on London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra.7 GFOF is also passported for sale across Europe.
“Institutional investment in digital assets is growing rapidly and professional investors expect a dramatic shift by the end of this decade reversing the traditional dominance of digital asset investment by retail investors. Retail investors will remain a very important part of the digital asset investment market but the shift underlines how the investment case is being adopted more widely,” said David LaValle, Global Head of ETFs at Grayscale Investments.
“Millions of people in the UK invest in digital assets either by buying cryptocurrency directly or through investing in ETFs and they will remain very important, but it is interesting to see the forecasts of major institutional interest,” said Hector McNeil, co-CEO, and co-Founder of HANetf, which has worked with Grayscale to bring GFOF to the European market.
GFOF tracks the investment performance of the Bloomberg Grayscale Future of Finance Index and seeks to offer investors exposure to companies at the intersection of finance, technology, and digital assets – companies that are building the digital economy – all through the familiar ETF wrapper.
The Bloomberg Grayscale Future of Finance Index comprises companies representing three “Future of Finance” pillars: 8
· Financial Foundations – asset managers, exchanges, brokerages, and wealth managers involved in the enablement of the digital economy
· Technology Solutions – organizations providing the technology to facilitate the digital economy through data and processing
· Digital Asset Infrastructure – includes companies directly involved in mining, energy management, and activities that power the digital asset ecosystem
Please remember that when you invest in ETFs, your capital is at risk.
Product Information for Grayscale Future of Finance UCITS ETF
Exchange Currency Ticker ISIN
LSE USD GFOF IE000TVPSRI1
LSE GBP GFOP IE000TVPSRI1
Xetra EUR GF0F IE000TVPSRI1
Borsa Italiana EUR GFOF IE000TVPSRI1
GFOF was created in collaboration with HANetf, Europe’s first full services ‘white label’ UCITS ETF issuer.9
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About Grayscale Investments®
Grayscale enables investors to access the digital economy through a family of secure, regulated, and future-forward investment products. Founded in 2013, Grayscale has a proven track record and unrivalled expertise as the world’s largest digital currency asset manager. Investors, advisors, and allocators turn to Grayscale’s private placements, public quotations, and ETFs for single asset, diversified, and thematic exposure. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, MSRB Registered). For more information, please follow @Grayscale or visit grayscale.com.
HANetf is an independent provider of UCITS ETFs, working with asset management companies to bring differentiated, modern, and innovative exposures to European ETF investors. Via our white-label ETF platform, HANetf provides a complete operational, regulatory, distribution and marketing solution for asset managers to launch and manage UCITS ETFs. www.hanetf.com