Analysis of data compiled by ETC Group shows pension funds in the US and Canada pushing into crypto market aided by supportive regulators, as China slams the door on mining
London, UK - 2 Feb 2022. ETC Group (etc-group.com) has released its latest research on Bitcoin and Ethereum as part of its regular series of market reports. The research, available on its website show
- The Houston Firefighters Relief and Retirement Fund and CDPQ, the second-largest public pension plan in Canada, lead the way with the first US and Canadian public pension fund investments with $25 and $400m invested in crypto assets respectively.
- China’s share of global Bitcoin mining dropped from 75.6% in September 2019 to 0% in August 2021; the US was the biggest beneficiary of displaced miners, with Foundry USA growing its share from 7.7% to 16.5% since October 2021.
- Institutions including Goldman Sachs and JP Morgan reaffirmed their confidence in Bitcoin market growth in 2022 as TP ICAP started trading cryptocurrency derivatives for the first time in January 2022.
- Ethereum NFT sales rocketed by 15,000% while Ethereum DeFi jumped 764% to over $150bn TVL.
The latest research by ETC Group analyses the market performance of Bitcoin and Ethereum as well as providing commentary and analysis on market and technical developments.
Bradley Duke, CEO of ETC Group comments:
In these times of rampant inflation the search for an inflationary hedge has become even more important. Even stable Western economies have joined the likes of Turkey in seeing increasing inflation while Gold, traditionally the go-to store of value in times of economic troubles, has failed not only to attract new investors, but even to maintain its store of value losing around 4% of its value in 2021. As a result we’re seeing more institutions, including pension funds and others pushing into the crypto markets to try to increase their value over the long term. Meanwhile market infrastructure is expanded and strengthened by the involvement of players like TP ICAP. Despite the current leaning bearish market, digital assets are clearly here to stay.
Other highlights from the reports:
- Eastern European and South American governments were the most forward leaning on Bitcoin holding and use; Georgia, Bulgaria and Finland are in the top 5 crypto holding governments while El Salvador became the first country to adopt Bitcoin as legal tender and Brazil is discussing similar legislation.
- NFT sales on Ethereum have skyrocketed by 15,000% year on year. Marketplace Opensea is estimated to control 97% of the NFT market with $14bn of trading volume in 2021.
- US regulators are continuing to grapple with digital assets. In September 2021, Texas became the third state — after Wyoming and Rhode Island — to recognise cryptocurrency under commercial law, while the US federal government continues its discussions of how to regulate the assets.
- The world’s richest asset managers continue to invest heavily in Bitcoin mining, too. $9trn asset manager BlackRock joined Fidelity and Vanguard by taking significant stakes worth a total of $382m in Marathon Digital (NASDAQ:MARA) and Riot Blockchain (NASDAQ:RIOT), two of the largest publicly-traded mining companies.
The full reports, including notes on the research, are available at etc-group.com where anyone can also register to receive future reports as well as ETC Group’s regular market-update #CryptoMinutes.
Cryptocurrencies are highly volatile, and your capital is at risk. Disclaimer: https://bit.ly/etcdisc
Important Information
This publication constitutes a marketing communication and is provided for informational purposes only. It does not constitute investment advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instrument.
This document (which may take the form of a presentation, press release, social media post, blog article, broadcast communication or similar instrument – collectively referred to as a “Document”) is issued by Bitwise Europe GmbH (“BEU” or the “Issuer”) and has been prepared in accordance with applicable laws and regulations, including those relating to financial promotions.
Bitwise Europe GmbH, incorporated under the laws of Germany, is the issuer of the Exchange Traded Products (“ETPs”) referenced in this Document under a base prospectus and the applicable final terms, as supplemented from time to time, approved by the German Federal Financial Supervisory Authority (BaFin). The approval of the prospectus by BaFin relates solely to the completeness, coherence and comprehensibility of the prospectus in accordance with the Prospectus Regulation and does not constitute an endorsement, recommendation or assessment of the merits of the products.
The market analyses, views and scenarios presented reflect the assessment as of the date of publication and are based on information considered reliable. However, no representation or warranty is made as to their accuracy or completeness. Forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Past performance is not a reliable indicator of future results.
Capital at risk. Cryptoassets are highly volatile and involve a high degree of risk. The value of investments in cryptoassets and crypto-linked ETPs may fluctuate significantly, and investors may lose part or all of their invested capital. No capital protection or guaranteed compensation mechanism applies in respect of market losses.
Any investment decision should be made solely on the basis of the relevant base prospectus, the applicable final terms and the key information document, in particular the section entitled “Risk Warning”. The base prospectus, final terms and additional risk information are available at: www.bitwiseinvestments.eu
Access to certain documents may require self-certification regarding your jurisdiction and investor status and may be subject to additional disclaimers and important information.
For further details, please refer to the full disclaimer available at: www.bitwiseinvestments.eu/disclaimer
