Welcome to the August edition of the COSIMO Verbatim newsletter! This month we’re bringing you the latest industry news, portfolio updates, and a recap of our summer series of blockchain insights. We will also take a look at the inflection point in blockchain and crypto adoption, focusing on institutional embrace and the political landscape.

August Insights

Morgan Stanley Advisors Can Now Present Two Bitcoin ETFs to Certain Clients

BlackRock’s ETHA Becomes First Ethereum ETF to Hit $1B Milestone

Institutional Bitcoin ETF Holders Increase Holdings in Q2

Tokenized Treasury Funds Pass $2B Market Cap

Base’s Onchain Summer: 4M Active Addresses

 

The Inflection Point in Blockchain and Crypto Adoption

Blockchain and crypto technologies are advancing at a pace that surpasses even the rapid growth of the internet during its early years. From 1990 to 2000, the number of internet users surged by 70% annually. Today, blockchain is expanding at an astonishing rate of 137% per year, doubling the internet’s golden-age growth rate. This unprecedented acceleration reflects a broader shift as digital finance and commerce move into a new paradigm. The increasing launches of digital assets, the rise of decentralized protocols, the proliferation of Web3 tokenized platforms, and expanding institutional and legislative support all signal that blockchain is not just growing but is now at a critical inflection point. The narrative is clear: digital commerce is becoming the cornerstone of our future, offering unprecedented benefits in speed, cost, security, and efficiency, and signaling a transformative leap comparable to the internet’s early revolution.

Institutional Embrace: From ETFs to Tokenization

Institutional interest in blockchain and crypto is accelerating, with landmark developments such as the introduction of cryptocurrency ETFs and the rise of tokenization projects. Notably, BlackRock's Ethereum ETF recently surpassed $1 billion in net inflows, signaling robust investor confidence. This is complemented by the growing market cap of tokenized treasury funds, which has now exceeded $2 billion, showcasing the increasing integration of blockchain technology into traditional financial systems .

Key financial figures, including Larry Fink, Stanley Druckenmiller, and Ray Dalio, who were once skeptical of blockchain crypto, have begun to embrace its potential. Fink, the CEO of BlackRock, has described ETFs as “step one in the technological revolution in the financial markets,” with step two being “the tokenization of every financial asset.” Their shifting perspectives underscore a broader trend where the value proposition of blockchain—offering faster, cheaper, and more secure financial solutions—is becoming increasingly recognized.

Influential Voices: From Skepticism to Support

The evolution in the views of prominent financial leaders has been remarkable. Larry Fink’s acknowledgment of crypto’s potential marks a significant departure from his earlier skepticism, and Stanley Druckenmiller acknowledging Bitcoin’s importance as a store of value, reflects his belief in their long-term value. Ray Dalio, who once dismissed Bitcoin as a bubble, now sees it as a viable store of value alongside gold. These shifts in perspective are not merely personal but signal a broader acceptance of blockchain technology within the financial community .

Political Stance: A Shifting Landscape in the US

As blockchain and crypto gain traction in the financial sector, they are also becoming increasingly relevant in political discourse. The current US presidential campaigns reflect a stark contrast in approaches to crypto regulation. While the Biden administration has been criticized for its adversarial stance, with limited references to digital assets in official platforms, the Republican Party has openly supported the industry. Former President Donald Trump, now a vocal advocate, has promised to make the United States a global leader in crypto if re-elected, emphasizing the need for regulatory clarity and pro-business policies.

On the other hand, Vice President Kamala Harris’s campaign has initiated efforts to reset relations with the crypto industry, signaling a potential shift in the Democratic Party’s approach. This outreach suggests that both sides of the political spectrum are recognizing the growing importance of blockchain and crypto, albeit with differing visions for its future .

The Future of Blockchain and Crypto at a Crossroads

The intersection of institutional adoption and shifting political perspectives marks a critical juncture for blockchain and crypto. As the technology continues to mature, its integration into global finance and policy frameworks will likely accelerate, driving further innovation and adoption. The future of blockchain and crypto is not just about technology but about redefining the very foundations of finance and commerce.

 

Portfolio Updates

Archax, the only FCA-regulated digital asset platform, and Ripple have taken a significant step forward in their partnership by announcing an expanded collaboration aimed at bringing tokenized real-world assets (RWAs) to the XRP Ledger (XRPL). More here.

Hedera, a leading Proof of Stake (POS) blockchain platform, announced its membership with the International Institute of Finance (IIF), closing the gap between blockchain technology and traditional finance. More here.

Uphold, the cloud-based digital wallet and trading platform, has announced a partnership with cross-border payment platform dLocal, who specialize in high-growth regions, to merge dLocal’s payment processing capabilities with Uphold’s financial services to improve access to financial solutions in emerging markets. More here.

 

Blockchain Insights Summer Series

Our Summer Series of Blockchain Insights continues to deliver thought-provoking content for our crypto-curious community. This series has been our way of keeping you informed and inspired with the latest and greatest in blockchain and crypto. We've covered insightful podcasts, must-read articles, and more, ensuring your blockchain journey is as vibrant as ever.

So far in the series, we've explored:

A podcast episode from The Scoop by The Block featuring Arca's CIO, Jeff Dorman. He discusses why Wall Street should market Ethereum as the crypto 'app store' and how this narrative could drive more investment flows.

An episode of the Defactor podcast called "Marketing an RWA Ecosystem." In this conversation, Sebastiaan Opschoorand Adam Bouktila delve into the challenges and strategies of marketing specifically for RWA.

An episode from Hedera Hashgraph podcast titled "The Digital Economy: Not Just a Future Promise; It's a Current Opportunity." Zenobia G., from Hashgraph, and Xiang Xu, from Mondelēz International discuss how traditional industries are adapting to the modern digital economy.

An episode of the 5 GOATs RWA and Tokenization Podcast: "Exploring the World of Tokenization with Black Manta Capital." Alexander Rapatz, founding partner at Black Manta Capital Partners, shares his journey from corporate finance to blockchain innovation.

An episode of the Casper Association podcast: "The Future of Finance: Blockchain, AI, and Regulatory Challenges." The hosts sit down with Aaron Klein, a senior fellow at The Brookings Institution to explore how blockchain technology and AI are poised to revolutionize financial systems.

An article from Shyft Network titled "𝘡𝘦𝘳𝘰-𝘒𝘯𝘰𝘸𝘭𝘦𝘥𝘨𝘦: 𝘛𝘩𝘦 𝘍𝘶𝘵𝘶𝘳𝘦 𝘰𝘧 𝘔𝘰𝘳𝘦 𝘚𝘦𝘤𝘶𝘳𝘦 𝘢𝘯𝘥 𝘚𝘤𝘢𝘭𝘢𝘣𝘭𝘦 𝘉𝘭𝘰𝘤𝘬𝘤𝘩𝘢𝘪𝘯." The piece discusses how Zero-knowledge technology (ZK) is revolutionizing blockchain by enhancing privacy and scalability. 

An episode of the Blockchain Insider podcast by 11:FS called "𝘏𝘰𝘸 𝘵𝘰 𝘉𝘦𝘤𝘰𝘮𝘦 𝘢 𝘋𝘪𝘨𝘪𝘵𝘢𝘭 𝘊𝘳𝘦𝘢𝘵𝘰𝘳." The discussion offers a captivating look at how blockchain technology is revolutionizing the creative industry.

An episode of the Empire podcast by Blockworks called "Mastering the Psychology of Crypto Cycles." In this conversation, the speakers emphasize the importance of psychological awareness in crypto trading and offer valuable strategies for managing emotions.

As the series wraps up, stay tuned for more insights that will expand your knowledge and spark new ideas.