MARKETS DAILY: Featured Interview | Crypto Outlook With Jeff Dorman, CIO of Arca
Dec 22, 2023
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Jeff Dorman, CIO of Arca, discusses the changing sentiment in crypto markets, the need for a modern diversified portfolio beyond stocks and bonds, and Ethereum's role as a technology and app store. The podcast also explores investor concerns about regulatory risks, the outlook for DeFi, the gaming and NFT sectors, and the emergence of new marketplaces within gaming ecosystems.
Investor sentiment in the crypto market is shifting towards the ecosystem of DeFi, Web3, gaming, and NFTs, indicating a growing interest and increased knowledge among investors.
Bitcoin is being recognized as a diversification tool in investment portfolios, with the introduction of Bitcoin ETFs and the interest from institutional investors suggesting a positive outlook for Bitcoin in 2024.
Deep dives
Shifting Sentiment and Growing Interest in the Crypto Market
Investor sentiment in the crypto market is shifting as more investors are showing interest and reaching out for answers. While media coverage has primarily focused on the fallout of previous years and the rise of select tokens, there is a growing interest in the ecosystem of DeFi, Web3, gaming, and NFTs. Investors are becoming more knowledgeable, asking better questions, and showing a greater understanding of the industry. Education and increased investor sophistication have played a significant role in this shifting sentiment.
The Changing Landscape of Crypto Investors
Crypto investors have evolved over the years from early believers to more sophisticated participants. Unlike before, investors now have a better understanding of the ecosystem and know what they want to invest in. They are asking more informed questions and have become more selective in their investment choices. Additionally, the interest in crypto investments is no longer confined to crypto-native individuals or funds. Traditional finance professionals and institutions are now also considering crypto allocations, which indicates a broader acceptance and understanding of the asset class.
Bitcoin's Outlook for 2024
While Bitcoin has historically been seen as a speculative asset, it is now being viewed in terms of portfolio diversification. Investors are recognizing the need for a modern portfolio that goes beyond the traditional 60/40 allocation. With the correlation between stocks and bonds breaking down, investors are searching for new ways to diversify their portfolios and are considering Bitcoin as part of that solution. The introduction of Bitcoin ETFs and the increasing interest from institutional investors suggest a positive outlook for Bitcoin in 2024, with the potential for price appreciation and opportunities for Bitcoin miners as well.
Ethereum's Role as a Blockchain App Store and Investment Opportunity
Ethereum is being recognized as a technology-driven platform that serves as an app store for blockchain-based applications. It offers diverse functionalities, from NFTs and DeFi to wrapped Bitcoin and stablecoins. Investors are seeing Ethereum as a representation of the broader blockchain industry and a way to gain exposure to blockchain technology without needing to choose individual tokens. While other layer one and layer two blockchains are receiving significant attention, the value lies in the applications and projects built on these platforms rather than the platforms themselves. As such, the investment potential of blockchain applications within the Ethereum ecosystem is becoming more apparent.
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As the year comes to a close, host Noelle Acheson speaks with guest Jeff Dorman, CIO of Arca, about what the crypto narrative is shaping up to be in 2024.
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Disclaimer:
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This episode was hosted by Noelle Acheson. “Markets Daily” is executive produced by Jared Schwartz and produced and edited by Eleanor Pahl. All original music by Doc Blust and Colin Mealey.