Gabor Gurbacs, advisor at VanEck, commented on the evolving story of the blockchain industry in 2024, noting significant changes due to recent developments in the crypto space.
“I believe today’s efforts are meaningfully differentiated from the old ‘blockchain this blockchain that’ narratives,” he noted.
VanEck’s Gurbac emphasizes the underestimation of the Blockchain
On
“People also laughed at ETFs. Now it’s a $9 trillion industry.”
The first exchange-traded fund (ETF), SPY, launched in 1993, made history as the first ETF to be listed on a national stock exchange. Today, it remains one of the world’s most actively traded ETFs.
However, he argues that this is what things are starting to look like for the crypto industry in the future, especially with the recent approval of 11 spot Bitcoin ETF applications by the US Securities and Exchange Commission.
“Serious efforts and capital are starting to flow into this area. It is less about blockchains than about rethinking and reforming capital markets,” he says. He indicates that reporting has evolved from simply referring to stories about the possibilities of the blockchain:
“I believe today’s efforts are meaningfully differentiated from the old ‘blockchain this blockchain that’ narratives.”
It’s just the beginning for companies looking to introduce Bitcoin products to the market. On January 12, BeInCrypto reported that Grayscale Investments will apply for a covered call Bitcoin ETF, which will allow investors to generate income from options on the Grayscale Bitcoin Trust (GBTC).
However, Gurbacs further argues against those who question BlackRock CEO Larry Fink’s recent statements regarding tokenization.
“97% of the people laughing at Larry Fink and his comments about tokenization as his next area of focus don’t understand how broken the capital markets are.”
Asset tokenization is the digital representation of physical assets on the blockchain. It offers benefits such as improved transparency. Additionally, access to fractionated assets is simplified by enabling ownership splitting on the blockchain.
Figure 2. Stylized representation of asset tokenization. Source: OECD Going Digital Toolkit
This follows BeInCrypto’s recent reporting that Fink’s vision extends to the idea that ETFs will ultimately transform every asset class. Moreover, the ultimate step is the tokenization of assets.
Read more: What is a Layer-1 Blockchain?
Highlights of Gurbac’s overlooked vision of modern capital markets
Still, Gurbacs argues that recent satisfaction with capital markets could be disrupted by the evolution of spot Bitcoin ETFs and the potential for others in the future.
“People haven’t seriously thought about what modern capital markets should look like for decades,” he says.
Many in the industry are speculating about what story will be next in the crypto world.
Until last year, AI-focused crypto didn’t get much attention. In 2023, however, the spotlight shifted, especially with the rise of generative AI chatbots such as OpenAI’s ChatGPT and Google’s Bard.
