In today’s crypto for advisers newsletter breaks Samantha Bohbot, partner and chief growth manager from Rockawayx decentralized financing, and the differences Bitcoin, Ethereum and Solana bring to this space.
Then Kevin Tam answers questions about institutional investments in crypto -Tfs and noticing some global trends in “Ask an expert.”
– Sarah Morton
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Sectors In addition to Bitcoin: Ethereum, Solana and On-Chain Economies
Bitcoin can dominate the Crypto conversation as the most established digital asset, but today’s landscape offers many compelling opportunities for investors.
Outside of Bitcoin, Blockchain’s use of power, which pleases global users, generates meaningful revenue and grows impressive.
To bring global funding to the chain
Tokenized assets in the real world (Rwas) See issuing and trading of traditional instruments such as shares, bonds, raw materials and alternative assets on blockchains. The benefits of doing it are significant. The settlement of asset trader on the chain is almost immediate; Anyone, wherever can participate (If the issuer allows)And transactions are transparent, making them easier to track and automate.
Today, almost $ 300 billion is in tokenized assets on-chain. The Boston Consulting Group predicts that the market reaches $ 600 billion by the end of the year and $ 19 trillion in 2030. The latest RWA implementations show Blockchain’s potential to transform traditional markets.
In the bridge formation of traditional assets and use on chain, blockchains function as marketplaces with typical “chicken and eggs” dynamics. Issuers will go where the active users are and users are flowing to the place of the new and best products.
Ethereum was the natural starting point. Stableecoins like USDC and USDT first launched there, giving Ethereum the deepest pool of tokenized dollars and most of today’s RWA value on the chain.
Solana is a top competition for RWA activity, and recent launches show blockchain’s potential to quickly transform traditional markets. Kamino Finance, Solana’s leading loan and lending application, allows users to easily borrow against their inventory in Xstocks, Tokenized Shares of Apple, Tesla and other companies. Since Xstocks was launched across Blockchains on June 30, Solana has drawn an average of approx. 93% of the daily trade volume.
On-Chain Stock Token Volume of Blockchain | Source: Dune Analytics
Solana’s dominance in global developer activity and active users (more than double the next chain) Giving it an edge in issuers of assets while successfully boarding them and revealing new on-chain products will reinforce this activity.
More broadly, Defi continues to grow with greater diversity in on-chain products and offers of institutional qualities. Catering for sophisticated portfolios, builders work with products that integrate stableecoins, RWAs and / or yield mechanics to create appeal for different risk improvements.
Ethereum is currently leading the sector with over 94 billion dollars in the total value locked (Tvl) and thousands of protocols. While it is an advantage to preserve the deepest liquidity of the industry, there is more to defi than tvl.
Solana Defi -Protocol’s total value locked (Tvl) recently surpassed about $ 10 billion. In a sign that Tvl reflects real and valuable use, Solana’s applications earn more fee revenue on chain than all other chains together. Thanks to its speed and low cost, Solana has established herself as a defense active trade hub and is consistently leading ether in decentralized exchange (Dex) Trading volumes.
In addition to Bitcoin’s Crypto role as “digital gold”, both Ethereum and Solana Blockchains have emerged as core digital infrastructure, each with different benefits.
Ethereum is the original open computer where builders first coded decentralized applications and basic institutional projects launched.
Solana’s Defi Momentum builds. It is already the most widely used chain in the world and an Arnested for innovative Defi products. Like Ethereum’s original ETH Token, Solana’s Sol offers wide exposure to the ecosystem, which means investors do not have to choose individual application winners; Instead, they can participate in overall growth.
Ethereum and Solana’s long -term success depend on being home to applications that deliver real value and ultimately interfere with older financial systems. If they can pull it off, today’s prices may look like attractive entry points.
– Samantha Bohbot, Partner and Chief of Staff, Rockawayx
Ask an expert
Question: One year into the institutional investments in the Crypto ETFS trend, how does Canadian banks and pension funds approach Bitcoin?
ONE. This quarterly 13F archive reveals that Montreal-based Trans-Canada Capital has made remarkable investments in digital assets. It manages the pension assets for Air Canada as one of the largest business pension plans in the country. The Pension Fund added $ 55 million in a spot Bitcoin ETF.
Institutional adoption of Bitcoin has been accelerated in the past year, driven by clearer regulatory guidance, the launch of spot -TFs and increasing recognition of Bitcoin as a strategic asset. Plan 1 banks in Canada have more than $ 139 million in Bitcoin-stock-transparent funds, emphasizing the growing institutional demand and long-term positioning.
Question: How can institutional accumulation affect Bitcoin’s market dynamics?
ONE. Last year, ETFs bought approximately 500,000 bitcoin, while the network produced 164,250 new bitcoin through its proof-of-work consensus. This means that the ETF demand alone was three times the newly clarified supply. In addition, public and private companies bought 250,000 bitcoins. As governments consider including Bitcoin in their strategic reserves, other devices are investigating the addition of Bitcoin to their corporate chains.
Q. How will Financial Conduct Authority (FCA) Greenlighting retail access to crypto -ethns in the UK speeds up retail and institutional adoption?
ONE. This marks an important moment for crypto products in the retail market as an asset class that reflects a broader shift in Britain’s legislative attitude towards digital assets. It is a complete reversing from a 2020 decision when FCA banned crypto-exchange-traded notes. ETNs must be traded on an FCA-approved exchange of investment. The United Kingdom is moving its approach to crypto as the government is trying to grow the economy and support a digital asset industry and send a strong signal to institutional investors that the United Kingdom is positioning as a competing player in the global crypto market.
– Kevin Tam, Digital Active Research Specialist
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