Grayscale Sees New Crypto Opportunities as Bitcoin's Grip Weakens - Cryptonews.net
Crypto asset manager Grayscale reported on Nov. 12 that differences in business models, adoption, and token economics are creating investment opportunities beyond bitcoin.
The crypto asset manager highlighted how business models, adoption rates, and token economics are diverging, creating new investment possibilities beyond bitcoin. Their analysis, published Nov. 12, examined how these differences are expanding the crypto investment landscape.
The research team noted that while common market forces remain powerful, different crypto sectors are becoming less correlated. Over three years, bitcoin explained about half of the differences in how much sector returns rose or fell in the firm's analysis of crypto investment risk.
Performance Shifts
Among the 10 largest non-stablecoin assets, six different cryptocurrencies led quarterly performance over two years, with bitcoin topping none of those quarters. The comparison used data through Nov. 4, based on the FTSE Grayscale Crypto Sectors indexes that group digital assets by function and use case.
As crypto matures, investors have more opportunities to seek differentiated returns through sector and asset selection beyond bitcoin exposure alone.
Token Economics
Grayscale's earnings-based approach examines fees from trading, lending, and other applications, alongside costs and distributions. The analysis considers how buybacks, staking rewards, new issuance, and unlocks affect token supply and value.
Tokenized equities represent another opportunity. In July, Grayscale identified Ethereum, Solana, BNB Chain, Avalanche, and Canton Network as potential beneficiaries of equity tokenization, distinguishing between third-party wrappers and issuer-sponsored shares.
Risk Considerations
Despite bitcoin's lower annualized realized volatility in the mid-40% range as of Oct. 31 (down from triple-digit levels), extreme moves and momentum remain defining characteristics. Lower historical volatility coexists with substantial price risk.
Schwab's analysis shows that even small bitcoin or ether positions can significantly affect overall portfolio performance. Grayscale emphasized that diversification and position sizing address different aspects of exposure within crypto.
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