#1341 Research Panel | Fidelity, ARK, VanEck Reveal How They Evaluate Bitcoin
Apr 11, 2024
auto_awesome
Experts from Fidelity, ARK, and VanEck discuss Bitcoin evaluation, ETFs, client demand, and regulation. They analyze crypto industry trends, market outlook, and future of digital assets. Topics include open-source tech, winner-take-all projects, on-chain data analysis, and Bitcoin's impact on global finance. They also explore Bitcoin mining, energy consumption, global implications, and design principles. Perspectives on engineering vs finance, regulation risks, and maintaining Bitcoin's ethos are discussed.
Institutional investors like Fidelity and Van Eck evaluate Bitcoin uniquely, focusing on its security and decentralization compared to other assets.
Bitcoin mining's evolving relationship with energy dynamics, utilizing excess energy capacity and exploring sustainability initiatives for a nuanced understanding.
Deep dives
Evolution of Institutional Interest in Bitcoin and Digital Assets
Major institutions like Van Eck, Fidelity, and Ark Invest have made significant strides in embracing Bitcoin and digital assets. Van Eck, with around $100 billion in assets, actively manages crypto strategies and filed for Bitcoin and Ethereum ETFs. Fidelity Digital Assets, a subsidiary of Fidelity, offers custody solutions and a platform for buying/trading Bitcoin and Ether. ARK Invest, focused on innovation, entered Bitcoin early in 2015 and emphasizes Bitcoin as a new asset class.
Comparison of Bitcoin with Other Cryptocurrencies
When evaluating Bitcoin and other cryptocurrencies, the emphasis lies on assessing Bitcoin separately due to its unique characteristics. Fidelity emphasizes Bitcoin's distinctiveness, highlighting its security and decentralization compared to other digital assets. They stress the need for a different lens to view Bitcoin and how it differs from other assets in the crypto space.
Evaluating Bitcoin Using Fundamental Analysis and On-Chain Data
Traditional valuation models may not directly apply to Bitcoin due to its unique nature. Fidelity focuses on using on-chain data to analyze Bitcoin's fundamentals, economic state, and buyer/seller behavior. By leveraging on-chain data, they aim to evaluate Bitcoin from both long-term and short-term perspectives, providing insights into its economic dynamics and potential price discovery.
Considerations on Bitcoin Mining and Energy Usage
Bitcoin's energy consumption often sparks debates, with differing views on its environmental impact. The narrative shifts towards Bitcoin miners acting as a stabilizing force for energy providers by utilizing excess energy capacity. The evolving relationship between Bitcoin mining and energy dynamics, including new sustainability initiatives, highlights a nuanced approach to understanding Bitcoin's energy utilization.
Chris Kuiper is the Director of Research for Fidelity Digital Assets. Yassine Elmandjra is the Director of Digital Assets at Ark Invest. Matthew Siegel is the Head of Digital Assets Research for Vaneck. Will Clemente is the Co-Founder of Reflexivity Research. This conversation was recorded at Bitcoin Investor Day in New York. In this conversation, they discuss bitcoin evaluation process, bitcoin ETFs, client demand, regulation, crypto industry, and future outlook.
=======================
Core Scientific (NASDAQ: CORZ) is one of the largest public Bitcoin miners and hosting solutions providers for Bitcoin mining in North America. To learn more about Core Scientific, please visit: www.corescientific.com
=======================
In this podcast, we dive into the revolutionary concept of PropyKeys, an application that allows anyone to mint home addresses all over the world on blockchain. PropyKeys.com is a part of the Propy ecosystem, that has a grand mission to make homeownership more affordable and user friendly. We will explore the journey of Propy’s founder and how this innovative technology provides benefits for homeowners, and for the real estate industry. Join us as we discuss the Propy’s latest collaborations, including Coinbase, and its new fun project PropyKeys. X (Twitter): @PropyKeys Website: Mint an address at propykeys.com. dApp: https://dapp.propy.com/
=======================
Pomp writes a daily letter to over 265,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/