Grayscale-“Institutional Investors to Replace Retail Investors as Major Holders of Digital Assets”

 

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

Grayscale

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

Important Disclosures:

Communications issued in the UK (ETFs and ETCs)

The content in this document is issued by HANetf Limited (“HANetf”) and approved by Privium Fund Management (UK) Limited (“Privium”). HANetf are an appointed representative of Privium, which is authorised and regulated by the Financial Conduct Authority.). HANetf is registered in England and Wales with registration number 10697042.

Communications issued in the European Economic Area (“EEA”) relating to ETFs

The content in this document is issued by HANetf Management Limited (“HML”) acting in its capacity as management company of HANetf ICAV. HML is authorised and regulated by the Central Bank of Ireland. HML is registered in Ireland with registration number 621172.

Communications issued in the European Economic Area (“EEA”) relating to ETCs

This communication has been prepared for professional investors, but the ETCs and ETFs set out in this communication (“Products”) may be available in some jurisdictions to any investors. Please check with your broker or intermediary that the relevant Product is available in your jurisdiction and suitable for your investment profile.

Past performance is not a reliable indicator of future performance. The price of the Products may vary, and they do not offer a fixed income. This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes. Forward looking statements are subject to certain risks, uncertainties, and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements.

Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. The content of this document is for information purposes and for your internal use only, and does not constitute an investment advice, recommendation, investment research or an offer for sale nor a solicitation of an offer to buy any Product or make any investment. An investment in an exchange traded product is dependent on the performance of the underlying asset class, less costs, but it is not expected to track that performance exactly.

The Products involve numerous risks including among others, general market risks relating to underlying adverse price movements in an Index (for ETFs) or underlying asset class and currency, liquidity, operational, legal, and regulatory risks. In addition, in relation to Cryptocurrency ETCs, these are highly volatile digital assets and performance is unpredictable.

The information contained on this document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of securities in the United States or any province or territory thereof, where none of the Issuers (as defined below) or their Products are authorised or registered for distribution and where no prospectus of any of the Issuers has been filed with any securities commission or regulatory authority.

No document or information on this document should be taken, transmitted, or distributed (directly or indirectly) into the United States. None of the Issuers, nor any securities issued by it, have been or will be registered under the United States Securities Act of 1933 or the Investment Company Act of 1940 or qualified under any applicable state securities statutes.

The Issuers:

1. HANetf ICAV, an open-ended Irish collective asset management vehicle issuing under the terms in the Prospectus and relevant Supplement for the ETF approved by the Central Bank

of Ireland (“CBI”) (“ETF Prospectus”) is the issuer of the ETFs. Investors should read the current version of the ETF Prospectus before investing and should refer to the section of the ETF Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the ETFs. Any decision to invest should be based on the information contained in the ETF Prospectus.

2. HANetf ETC Securities plc, a public limited company incorporated in Ireland, issuing under the terms in the Base Prospectus approved by the Central Bank of Ireland and the final terms of the relevant series (“ETC Securities Documentation”) is the issuer of the precious metals ETCs. Investors should read the latest version of the ETC Securities Documentation before investing and should refer to the section of the Base Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the ETCs. Any decision to invest should be based on the information contained in the ETC Securities Documentation.

3. ETC Issuance GmbH, a limited liability company incorporated under the laws of the Federal Republic of Germany, issuing under the terms in the Prospectus approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) and the final terms (“Cryptocurrency Prospectus”) is the issuer of the ETCM ETCs. Investors should read the latest version of the Cryptocurrency Prospectus before investing and should refer to the section of the Cryptocurrency Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the ETCs contained in the Cryptocurrency Prospectus. Any decision to invest should be based on the information contained in the Cryptocurrency Prospectus.

The ETF Prospectus, ETC Securities Documentation, and Cryptocurrency Prospectus can all be downloaded from www.hanetf.com. The decision and amount to invest in any Product should take into consideration your specific circumstances after seeking independent investment, tax, and legal advice. We do not control and are not responsible for the content of third-party websites.

We believe the information in this document is based on reliable sources, but its accuracy cannot be guaranteed. The views expressed are the views of HANetf at time of publication and may change. Neither Privium nor HANetf is liable for any losses relating to the accuracy, completeness, or use of information in this communication, including any consequential loss.

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.

About HANetf

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

About the author

Brent Dixon is the owner of E-Crypto News and an early adopter of cryptocurrencies. He is a Book editor- that has edited numerous books on Cryptocurrencies. He has been a writer for more than 30 years. Covering everything from Jazz Music to Blockchain Technology. He currently lives with his wife on Miami Beach, Fl.

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