Islington Consultants

Tokenized Funds — BCG, Aptos Ascend & Invesco "The Third Revolution in Asset Management Decoded Amid all the hype over Generative AI, interest in distributed ledger technologies (DLT) seems to have waned over recent months. But in the financial services industry, DLT-based solutions are attracting increasing levels of interest. Through an innovation called fund tokenization, the technology’s many advantages are finding a new home in the asset management space, where they can boost value creation, increase transparency, and streamline transaction processing. When combined with smart contracts, which automate various aspects of business logic, it’s clear why market participants are eager to participate. As DLT use cases proliferate, banks are ramping up initiatives aimed at enhancing efficiency in markets from cross-border payments to fixed income. But fund tokenization – which we call the third revolution in asset management – offers the potential to create billions of dollars of value for both financial institution and end investors. In late 2024, tokenized funds had garnered more than US$2 billion in assets under management (AUM), with one manager raising significant sums in just a few months – and at higher-than-average fees. This reflects a pattern of growing investor demand, particularly from virtual asset owners (i.e., holders of crypto) such as crypto foundations. Over the coming period, we expect demand to continue rising, especially when regulated on-chain money (such as regulated stablecoin), tokenized deposit, and central bank digital currency (CBDC) projects materialize." Available here: https://lnkd.in/e-rAUmFW Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #digitalassets #crypto #cryptocurrency #tokenizedfunds #tokenization #bitcoin #ethereum #btc # eth

Bitcoin’s Evolving Role as an Alternative Investment — Fidelity Digital Assets "Understanding where bitcoin can fit in a portfolio Bitcoin is many things to many people—why someone chooses to hold bitcoin depends on their individual circumstances, views of what bitcoin is today, and what it could become. Historically, such debates have revolved around whether the bitcoin token is a store of value, medium of exchange, alternative asset, a combination of these functions, or none of the above. We believe that as the ecosystem matures, Bitcoin could simultaneously serve multiple functions—either foundationally or through incremental layers. One of the fascinating things about Bitcoin is that its success is not predicated on serving a singular purpose." Available here: https://lnkd.in/eaitg3X5 Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #digitalassets #crypto #cryptocurrency #bitcoin #ethereum #btc # eth

State of Crypto Report 2024 — a16zcrypto (Andreessen Horowitz) "New data on swing states, stablecoins, AI, builder energy, and more Key takeaways: - Crypto activity and usage hit all-time highs  - Crypto has become a key political issue ahead of the U.S. election - Stablecoins have found product-market fit - Infrastructure improvements have increased capacity and drastically reduced transaction costs - DeFi remains popular — and it’s growing - Crypto could solve some of AI’s most pressing challenges - More scalable infrastructure has unlocked new onchain applications" Available here: https://lnkd.in/gdyBPEEp Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #digitalassets #crypto #cryptocurrency #bitcoin #ethereum #btc # eth #pwc

Our third annual FinAccelerate program begins next Tuesday, October 22. We look forward to welcoming these 25 cohort companies to our offices in San Francisco and Silicon Valley next week: • Boosted.ai • CollateralEdge • CRiskCo Inc. • EarthAngel Projects • ESHE Pay • FraudShield • Graphio • GreenEarthX Inc. • Indicio • Kolio by Immutable Insight • Ligo Network • LuxePay LLC • LZero Analytics • Nomyx • Patlytics • SLVR • Strategic Global Advisors • Sustainable Bitcoin Protocol \(SBP\) • Tadaima • TaxbotGPT • Testudo • Web3Firewall • Xendible • Xenios Blockchain Group • Zoniqx #Fintech #DeFi #FinAccelerate

Annual Global Crypto Hedge Fund Report — PWC "Hedge funds accelerate digital asset investments as regulatory clarity and ETF launches boost confidence. ... Key findings: - Digital asset investments rise as regulatory clarity and ETFs boost confidence: Nearly half (47%) of traditional hedge funds surveyed this year have exposure to digital assets, up from 29% in 2023 and 37% in 2022, driven by increased regulatory clarity and the launch of spot cryptocurrency ETFs in Asia and the U.S. Among those already invested, 67% plan to maintain the same level of capital employed while the remaining 33% plan to invest more capital by the end of 2024. - More sophisticated investment strategies, shifting to derivatives: There has been a notable shift towards derivative trading in digital assets by traditional hedge funds, with its use rising to 58% in 2024 (up from 38% in 2023), while spot trading dropped to 25% this year after peaking at 69% last year. This signals growing sophistication in hedge fund strategies. - Growing interest in tokenization despite regulatory challenges: Interest in fund tokenization is also growing, with 33% of hedge fund respondents either committed to or exploring tokenization, compared to around a quarter of traditional hedge funds last year. Among digital asset focused hedge funds, 12% are already investing in tokenized assets, although regulatory challenges remain the biggest hurdle to wider adoption. -  - Rising institutional client demand: 43% of traditional hedge funds—whether invested or not in digital assets—are seeing increased interest from institutional clients. Currently, family offices and high-net-worth individuals (HNWIs) remain the largest investor categories in digital asset focused hedge funds, followed by fund of funds. - Hedge fund sector remains cautious: Despite the industry’s growth, many traditional hedge fund managers remain hesitant, with 76% of those not currently invested in digital assets unlikely to enter the space within the next three years, up from 54% in 2023. The top barrier to entering the market, cited by 38% of traditional hedge funds not invested is the exclusion of digital assets from investment mandates, rising from fourth place last year. While regulatory uncertainty remains a key concern, it has eased somewhat due to the adoption of clearer regulatory frameworks like the EU’s MiCA." Available here: https://lnkd.in/gAJNTrBJ Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #digitalassets #crypto #cryptocurrency #bitcoin #ethereum #btc # eth #pwc

The Digital Asset Investable Universe — Galaxy "The digital asset market is transforming the global financial system and reshaping traditional concepts of value, investment, and ownership. From the pioneering days of Bitcoin to the rapidly evolving world of Ethereum, the scope of digital assets has expanded far beyond tokens. Today, they include a diverse array of startups, publicly traded stocks, ETFs, and other investment products. ... 1. A Framework for Understanding the Digital Asset Universe 2. Market Trends and Adoption Drivers 3. Reasons and Barriers to Investing 4. How to Think About Asset Allocation 5. The Role of Risk Management 6. A Breakdown of Four Investment Verticals 7. Galaxy’s Role Across All Verticals" Available here: https://lnkd.in/gNnUUb4n Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #digitalassets #crypto #cryptocurrency #bitcoin #ethereum #btc # eth #galaxy

Bitcoin: A Unique Diversifier — Blackrock "- Investors considering allocating to bitcoin are grappling with how to analyze it relative to traditional financial assets, given bitcoin’s unique properties and limited history. - Bitcoin, with its high volatility, is obviously a “risky” asset on a standalone basis. However, most of the risk and potential return drivers bitcoin faces are fundamentally different from traditional “risky” assets, making it unfitting for most traditional finance frameworks – including the “risk on” vs. “risk off” framework employed by some macro commentators. - Bitcoin’s nature as a scarce, non-sovereign, decentralized global asset has caused some investors to consider it as a flight to safety option in times of fear and around certain geopolitically disruptive events. - Over the long term, bitcoin’s adoption trajectory is likely to be driven by the intensity of concerns over global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability. This is the inverse of the relationship that is generally attributed to traditional “risk assets” with respect to such forces." Available here: https://lnkd.in/gdqx_YDV Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #bitcoin #btc #digitalassets #blackrock

AI: To buy, or not to buy, that is the question — Goldman Sachs Research "The introduction of transformative technologies typically attracts growing investor interest as well as significant capital and new competition. As enthusiasm builds and stock prices increase, the sum of individual company valuations can overstate the total potential aggregate returns; often a bubble develops and bursts. Historically, investors over-focus on the originators, understate the impact of competition and overstate the returns on capital invested by the early innovators. At the same time, investors tend to underestimate the growth of new entrants to the industry that can piggyback off the capex of others, enabling them to generate new products and services. Valuations often also understate the opportunities that can accrue in the non-technology industries that can leverage the technology to generate higher returns in existing, as well as in new, product categories. In our view, the technology sector is not in a bubble and is likely to continue to dominate returns. However, concentration risks are high and investors should look to diversify exposure to improve risk-adjusted returns while also gaining access to potential winners in smaller technology companies and other parts of the market, including in the old economy, which will enjoy the growth of more infrastructure spend." Available here: https://lnkd.in/dWyHuh8g Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #ai #artificialintelligence #technology #gs #goldmansachs #research 

Islington Consultants are humbled and honoured to receive one of the 2024 SME Greater London Enterprise Awards. We are proud and excited that our hard work and undivided dedication to help our clients develop and implement their strategy and achieve their goals has been recognised by this reward. Thank you to SME News, our clients, partners, friends and everybody involved for making this possible. https://lnkd.in/envSxXmN

Stablecoins: The Emerging Market Story — Castle Island Ventures and Brevan Howard Digital "Who uses stablecoins? What are they used for? Are they just a collateral type and settlement medium for crypto traders, or something more?  Even as stablecoins have become a breakout success, these questions have plagued the policy debate. Many still believe that stablecoins, however impressive the numbers may be, are limited to crypto use cases. We all know that the metrics are strong and climbing. The supply of stablecoins in the aggregate is around $170 billion. They settle trillions of dollars worth of value every year. Around 20 million addresses onchain make a stablecoin transaction every month. Over 120 million addresses onchain hold a nonzero stablecoin balance. These numbers indicate that stablecoins are a serious parallel financial infrastructure – having started at near zero just five years ago" Available here: https://lnkd.in/emSMKZJD Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of Islington Consultants. Islington Consultants does not provide legal, tax or investment advice and does not endorse the authors of this report. Readers should do their own research and seek advice before taking any action. #crypto #digitalassets #stablecoins #eth # etc #usdc #usdt