"Patience is a Super Power" - "The Money is in the waiting"
Showing posts with label GRT. Show all posts
Showing posts with label GRT. Show all posts

Tuesday, September 9, 2025

Tokenization of real word assets is real and increasing. Here's why Bitcoin's younger brothers and sisters might be the best bets

 


Ed Note: 
The recent $8.5 Billion investment by Jack Ma, co-founder of Alibaba Group and Yunfeng Capital, into the tokenization of energy assets, could be a major trigger for more institutional money to flow into the crypto space. Here I have laid out my thoughts on how retail investors might begin to position themselves.

Here is a Simplified Investment Report: Ethereum & Tokenization (2025)

1. Why Ethereum Matters

  • Ethereum is the #1 blockchain for tokenization, which means turning real-world assets like stocks, real estate, gold, or U.S. Treasuries into blockchain-based tokens.

  • Over half of all tokenized assets (≈57%) live on Ethereum or its Layer-2 rollups.

  • Big institutions (BlackRock, JPMorgan, Société Générale, HSBC) are already launching tokenized funds, bonds, and stablecoins on Ethereum.

  • Key upgrades (like EIP-4844 and “Layer 2” solutions) make Ethereum faster and cheaper, boosting adoption.

2. Key Complementary Players (Ed note: we are long ETH & GRT at present)

  • Chainlink (LINK): Provides the real-world data feeds (prices, interest rates, stock data) needed for tokenization.


  • Ondo Finance (ONDO): Specializes in tokenized Treasuries and funds.


  • The Graph (GRT): Helps apps search and index blockchain data.


  • Stablecoins (USDC, tokenized cash): The “dollars” of the system, critical for liquidity.

3. Price Outlook (2–4 Years)

  • Bull Case: If regulation is clear and institutions keep piling in, ETH could grow 3–5x by 2029.

  • Base Case: ETH grows steadily with tokenization adoption, outpacing Bitcoin in institutional use.

  • Bear Case: If regulators slow adoption, or competitors (Solana, private chains) gain share, ETH’s growth may lag.

4. Risks

  • Regulation: Some countries may prefer private blockchains over public Ethereum.

  • Competition: Solana, Avalanche, and consortium chains could take market share.

  • Fees & UX: If Ethereum’s scaling isn’t fast enough, it could frustrate users.

5. Investment Options for Retail Investors

Direct Crypto Exposure

  • Buy Ethereum (ETH) directly through a crypto exchange or regulated ETF.

ETFs – Best Picks (as of 2025)

For U.S. Investors:

  • iShares Ethereum Trust (ETHA) – BlackRock’s spot ETH ETF (low fees, safest bet).

  • Grayscale Ethereum Trust (ETHE) – Established but higher fees.

  • Bitwise Web3 ETF (BWEB) – Broader exposure to tokenization, DeFi, and blockchain infra (includes LINK, Coinbase, etc.).

For Canadian Investors:

  • Purpose Ether ETF (ETHH or ETHH.B) – First-mover, strong liquidity, CAD and USD versions.

  • CI Galaxy Ethereum ETF (ETHX or ETHX.B) – Low-fee ETH exposure, hedged/unhedged versions.

  • Evolve Ether ETF (ETHR) – Another strong spot ETH fund.

📌 Tip: Canadians can buy U.S. ETFs like ETHA if they want U.S. dollar exposure, but Canadian spot ETFs (ETHH, ETHX) are simpler for tax reporting.

6. Simple Portfolio Ideas

  • Conservative Tokenization Exposure:
    70% Ethereum ETF (ETHA or ETHH) + 30% diversified blockchain ETF (BWEB or similar).

  • Balanced Exposure:
    50% Ethereum ETF + 25% Chainlink/infra exposure (via BWEB) + 25% Bitcoin ETF (hedge).

  • Aggressive Play:
    70% Ethereum ETF + 20% Ondo/DeFi tokens + 10% high-risk smaller plays (The Graph, Stellar, etc.).

✅ Bottom Line:
For retail investors, Ethereum is the “core bet” on tokenization. Pairing ETH ETFs with diversified blockchain ETFs gives balanced exposure. Canadians have strong ETF choices with Purpose (ETHH) and CI Galaxy (ETHX), while U.S. investors should look at BlackRock’s ETHA as the anchor holding.

here’s a very simplified tokenization-focused model portfolio for retail investors, with three styles: Conservative, Balanced, and Aggressive.

Tokenization ETF.s (2025)

🟦 Conservative (low risk, steady growth)

  • 70% Ethereum ETF

    • U.S.: ETHA (BlackRock)

    • Canada: ETHH (Purpose) or 

    • ETHX.B (CI Galaxy) (Ed note: My preference-low MER)

  • 30% Blockchain ETF

    • U.S.: BWEB (Bitwise Web3 ETF)

    • Canada: HBLK (Harvest Blockchain ETF)

🟩 Balanced (moderate risk / reward)

  • 50% Ethereum ETF

  • 25% Blockchain ETF

  • 25% Bitcoin ETF (hedge & diversification)

    • U.S.: IBIT (BlackRock Bitcoin Trust)

    • Canada: BTCC (Purpose Bitcoin ETF)

🟥 Aggressive (higher risk / higher upside)

  • 70% Ethereum ETF

  • 20% Blockchain ETF (for exposure to Chainlink, Coinbase, Ondo, etc.)

  • 10% Small-cap tokens (Ondo, The Graph, Stellar — bought via exchanges, not ETFs)

✅ Key Takeaway:

  • Conservative = safer ETFs only

  • Balanced = mix ETH, BTC, and blockchain ETFs

  • Aggressive = heavy ETH + smaller high-risk tokens

    Here is a deeper dive:

    • Thesis: Ethereum is the default infrastructure layer for tokenized assets—money funds, Treasuries, stablecoins, and compliant security tokens—thanks to its developer density, standards, tooling, and institutional integrations. Multiple competing chains and private ledgers are growing, but most high-profile RWA initiatives still anchor to Ethereum or its L2s. PR NewswireCoinDeskRWA.xyz

    Technology & roadmap (why ETH is the “infrastructure play”)

    • Standards & tooling: ERC-20/721/4626/3643 underpin fungible tokens, NFTs, vaults, and compliant securities—widely adopted by issuers and custodians. Interoperability/market data via Chainlink CCIP & oracles is already piloted with DTCC for on-chain mutual fund data (Smart NAV). DTCC+1

    • Throughput & cost:

      • Dencun / EIP-4844 (Mar 2024) added “blob” data for rollups, slashing L2 costs and laying the path to full danksharding. KuCoinEIP-4844

      • Pectra (May 7, 2025) improved UX (wallet/account features) and staking flexibility; part of a steady cadence to scale L2s while preserving security. KrakenFidelity Digital Assets

    • Liquidity gravity: ETH hosts the deepest DeFi, stablecoin, and tokenized fund liquidity, a flywheel for issuance/secondary trading of RWAs. Recent data shows Ethereum’s stablecoin base at ~57% market share and at all-time highs, supporting settlement rails for tokenized assets. Cointelegraph

    Institutional adoption (who’s building on it)

    • Asset managers: BlackRock’s BUIDL, issued via Securitize, surpassed $1B AUM in year one and has expanded beyond Ethereum to several chains—yet Ethereum (and L2s) remain its core venues. PR NewswireCoinDesk

    • Market infrastructure: DTCC’s Smart NAV pilot with Chainlink demonstrated on-chain distribution of fund data—an enabling primitive for tokenized funds at scale. DTCC+1

    • Banks: Société Générale-Forge launched USD CoinVertible (USDCV) and EURCV on Ethereum & Solana with BNY Mellon as reserve custodian—pointing to regulated stablecoin rails for settlement/collateral. HSBC is active in tokenized gold. JPMorgan’s Onyx/TCN industrializes tokenized collateral (MMF shares, etc.). ReutersSG Forge+1CoinDeskHSBCJ.P. Morgan

    • Funds flow: Tokenized Treasuries/money-market funds surged ~80% YTD to $7.4B in 2025, with major programs from BlackRock, Franklin Templeton, Janus Henderson Anemoy—a big part of which runs on Ethereum/L2 rails. Financial Times

    • Scale elsewhere (context): Jack Ma’s Ant Digital is tokenizing ~$8.5B in Chinese energy assets on AntChain (private). It underscores global momentum—and highlights that some RWAs may live on permissioned ledgers even as liquidity seeks public chains. Cointelegraph

    Market position in tokenization

    • Share & totals: Public-chain RWAs on-chain sit around $27–28B (incl. stablecoins far larger), with Ethereum the leading venue for issuance, liquidity, and tooling—despite rising competition from Solana, Avalanche, private chains. RWA.xyz

    • Use cases that fit ETH best right now: tokenized MMFs/Treasuries, fund share registries, compliant security tokens, and institution-grade stablecoins for settlement and collateral. Wall Street JournalFranklin Templeton

    Complementary tokens for the tokenization push (diversifiers)

    • Chainlink (LINK): price oracles, Proof-of-Reserve, and CCIP cross-chain messaging used in the DTCC pilot and multiple tokenized funds. DTCC+1

    • Ondo (ONDO): tokenized Treasuries/money-market strategies (e.g., OUSG) have become a category leader integrated with DeFi on Ethereum/L2s. Ondo Finance+1

    • The Graph (GRT): indexing/query layer used by many RWA dashboards and apps. RWA.xyz

    • Regulated stablecoins: SG-Forge’s USDCV/EURCV (ETH/Solana) and institutional stablecoin initiatives from banks—key settlement media for RWA rails. ReutersSG Forge

    ETH price & 2–4 year outlook (scenarios, not advice)

    Starting point (today): see live price above. Macro: ETH underperformed in 2025 vs BTC/SOL as investors rotated to faster L1s; Pectra improved UX but didn’t instantly re-rate ETH. Still, structural tailwinds (tokenized funds, stablecoins, L2 growth) support a medium-term case. MarketWatch

    Key drivers (2025–2029):

    1. RWA growth: If tokenized MMFs/bonds scale from $7.4B → $50–200B, liquidity/fees accrue to ETH/L2s and DeFi collateral loops deepen. Financial Times

    2. L2 economics: Post-Dencun fee compression + L2 maturation (shared sequencing, data availability) expand throughput without sacrificing security. KuCoin

    3. Institutional rails: DTCC-style data, bank stablecoins, and custodial support reduce operational risk and improve capital efficiency on public chains. DTCC

    Scenario map (high level):

    • Base case: ETH tracks crypto beta with modest multiple expansion as RWA rails compound; gradual outperformance vs L1 peers on liquidity depth.

    • Bull case: RWA penetration accelerates; ETH/L2s become default venues for tokenized funds, with bank stablecoins native to ETH; staking + fee revenue re-rates ETH’s “cash-flow optionality.”

    • Bear case: Regulatory fragmentation pushes RWAs to private/permissioned chains; Solana/others capture most low-cost issuance; ETH remains strong but less levered to tokenization.

    (This is not investment advice; scenarios reflect uncertainties in rates, regulation, and tech execution.)

    Risks

    • Regulatory bifurcation: Banks/funds could prefer permissioned chains (e.g., AntChain, Onyx), constraining public-chain liquidity. CointelegraphJ.P. Morgan

    • Throughput competition: High-TPS L1s attract some RWA issuers; multi-chain BUIDL shows institutions will diversify venues. CoinDesk

    • Fee/UX headwinds: If L2 UX or data-availability costs don’t improve as fast as rivals’, app migration risk rises. MarketWatch

    Portfolio framing (if you want focused tokenization exposure)

    • Core: ETH (infrastructure beta to RWAs).

    • Picks & shovels: LINK (data/interop).

    • Applications: ONDO (tokenized Treasuries).

    • Settlement rails: regulated bank stablecoins (e.g., SG-Forge’s USDCV/EURCV where accessible to institutions). Ondo FinanceReuters

    What to watch next

    • Growth of tokenized MMFs/Treasuries (RWA dashboards). RWA.xyz

    • Bank and fund issuers launching ETH-native stablecoins/funds (Goldman/BNY program scale-up). Wall Street Journal

    • L2 roadmaps & post-Pectra improvements (rollup costs, DA layers). KuCoin

    • ED Note:

    • Besides owning ETH, BTC and GRT, I also own one of the mentioned ETFs in my personal, tax free investment account!


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Friday, July 11, 2025

We now own four Cryptos, BTC, ETH SOL and GRT, and have placed some others on our watch list!

 


Investment/Business Report: Crypto Markets Outlook (2025)

🧭 Executive Summary

The crypto market is transitioning into a new phase characterized by real-world asset (RWA) tokenization, institutional adoption, and scalable infrastructure for decentralized applications. This evolution marks a shift from speculative narratives toward utility-driven and enterprise-aligned use cases. The “Tokenization of Everything” thesis — where physical, financial, and intellectual assets are digitized on-chain — is emerging as the dominant macro-theme for the next cycle.

This report presents 10 crypto assets best positioned to benefit from these dynamics, balancing growth potential, infrastructure importance, and institutional traction.

🌍 Macro Market Drivers

  • Tokenization of Real-World Assets (RWA): Projected to become a $16 trillion market by 2030 (Boston Consulting Group).

  • Institutional Participation: BlackRock, Fidelity, Franklin Templeton, JPMorgan, Visa, and others are actively piloting blockchain-based products.

  • Layer-1 Evolution: Faster, cheaper, and modular chains are competing with Ethereum, driving innovation.

  • AI & Blockchain Integration: Projects like NEAR and The Graph are working on decentralized infrastructure for AI data and logic.

  • Regulatory Trends: U.S., Europe, and Asia are moving toward regulated digital asset frameworks, unlocking institutional engagement.

🔝 Top 10 Crypto Assets (2025 Outlook)

1. Ethereum (ETH)



  • Role: Smart contract layer for DeFi, NFTs, RWA tokenization

  • Key Use Case: Tokenization platforms (e.g. BlackRock’s BUIDL), CBDCs, Layer-2 ecosystems (Arbitrum, Optimism)

  • Institutional Involvement:

    • BlackRock, Fidelity, JPMorgan Onyx, Franklin Templeton

  • Why Invest: Still the dominant L1 with the broadest developer, DeFi, and institutional base. EIP-4844 brings major scalability improvements.

2. Chainlink (LINK)

  • Role: Oracle and interoperability layer for smart contracts

  • Key Use Case: Pricing tokenized RWAs, data feeds, Cross-Chain Interoperability Protocol (CCIP)

  • Institutional Involvement:

    • Partners with Swift, DTCC, ANZ Bank, BNP Paribas, Google Cloud

  • Why Invest: Core infrastructure for tokenized finance. LINK’s staking and new product launches (e.g. Transporter) are boosting adoption.

3. Solana (SOL)

  • Role: High-speed, low-fee smart contract blockchain

  • Key Use Case: Consumer apps, DePIN, DeFi, NFTs

  • Institutional Involvement:

    • Visa, Shopify, Circle, Jump Trading

  • Why Invest: Fast, cost-effective chain gaining real-world usage. Breakpoint 2024 events show surging dev and corporate interest.

4. Avalanche (AVAX)

  • Role: L1 platform with customizable subnets

  • Key Use Case: Institutional tokenization, gaming, DeFi

  • Institutional Involvement:

    • JPMorgan (Onyx), Citi, IntainMARKETS, Deloitte

  • Why Invest: Subnets allow tailored, regulated environments ideal for tokenized financial products and corporate use.

5. NEAR Protocol (NEAR)

  • Role: Chain abstraction and AI-friendly L1

  • Key Use Case: Modular blockchains, decentralized frontends, AI logic hosting

  • Institutional Involvement:

    • Working with EigenLayer, Polygon, Celestia, indirect support via ecosystem VCs

  • Why Invest: Positioned as the OS layer for web3/AI/tokenized applications. Strong dev experience and modular design.

6. Filecoin (FIL)

  • Role: Decentralized storage and compute

  • Key Use Case: RWA metadata, NFT files, enterprise data hosting

  • Institutional Involvement:

    • IBM Filecoin integration, Lockheed Martin research into decentralized comms

  • Why Invest: ToE depends on decentralized storage. FIL is rapidly expanding into compute and retrieval markets.

7. The Graph (GRT)

  • Role: Indexing and querying protocol for blockchain data

  • Key Use Case: Making smart contract and token data searchable and usable

  • Institutional Involvement:

    • Coinbase Ventures, Multicoin Capital, Digital Currency Group

  • Why Invest: Like Google Search for web3. A vital layer for data-driven applications, especially as tokenized systems scale.

8. Bitcoin (BTC)

  • Role: Store of value and collateral layer

  • Key Use Case: Institutional ETFs, RWA tokenization on L2s (e.g., Runes, Stacks)

  • Institutional Involvement:

    • BlackRock, Fidelity, ARK Invest, Grayscale

  • Why Invest: Widespread legitimacy. Tokenized BTC increasingly used as base liquidity in DeFi/RWA applications.

9. Uniswap (UNI)

  • Role: Decentralized exchange protocol

  • Key Use Case: Trading tokenized assets, governance

  • Institutional Involvement:

    • a16z, Paradigm, Pantera Capital

  • Why Invest: Liquidity for tokenized assets will route through DEXs. UNI’s upcoming “fee switch” may unlock revenue sharing.

10. Polkadot (DOT)

  • Role: Modular L1 ecosystem via parachains

  • Key Use Case: Nation-state or enterprise-grade modular chains

  • Institutional Involvement:

    • Web3 Foundation partners, Blockchain Capital, KR1

  • Why Invest: New Agile Coretime system allows flexible, scalable chain use. Relevant for custom asset environments.

📈 Market Summary Outlook

MetricStatus (2025 Proj.)
Institutional Capital InflowRising (led by ETFs, RWAs)
Tokenized Asset DemandAccelerating
Infrastructure MaturityAdvancing rapidly
Retail ParticipationRecovering
RegulationIncreasingly defined in US/EU

🧠 Strategic Takeaway

Investors who want exposure to the future of finance, asset tokenization, and decentralized data layers should favor infrastructure-heavy, enterprise-aligned coins. The top 10 highlighted projects are positioned not only for next-cycle growth but for long-term relevance in a world where everything from stocks, property, AI models, and identity may live on-chain.

ED Note:

For our investment in Solana, we bought shares of what we believe is the "only" Solana ETF available in North America, trading on the TSX as $ - EVOLVE SOLANA ETF C$UNHDG 

I even put some shares in my personal TFSA as I believe Solana is a true dark horse in the race and I expect a good performance, especially since there will be "No management fee" until 2026

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Wednesday, December 4, 2024

"The Graph" (GRT) is often referred to as the "Google of Blockchains" and that is why we've been accumulating this Crypto!

 


Executive Summary

The Graph (GRT) is a decentralized indexing protocol that enables efficient querying of blockchain data, earning it the nickname "the Google of Blockchain." By providing critical infrastructure for decentralized applications (dApps) to access and organize blockchain data, The Graph adds immense value to businesses and the broader crypto market. This report explores The Graph's unique technology, its value proposition, financials, growth prospects, and investor interest, highlighting why it is a pivotal component in the blockchain ecosystem.

Introduction

The rise of blockchain technology and decentralized applications has created a pressing need for efficient data retrieval mechanisms. Traditional methods of querying blockchain data are often inefficient and resource-intensive. The Graph addresses this challenge by offering a decentralized protocol for indexing and querying blockchain data, much like how Google indexes and makes web data searchable. Its native token, GRT, incentivizes network participants and facilitates governance.

Why The Graph is Referred to as "The Google of Blockchain"



  • Efficient Data Indexing and Retrieval: Just as Google revolutionized access to information on the internet by indexing web pages, The Graph revolutionizes access to blockchain data by indexing blockchain events and making them easily queryable.

  • Facilitating Data Searchability: The Graph enables developers to perform complex searches over blockchain data quickly and efficiently, which is crucial for the functionality of dApps that rely on real-time data.

  • Organizing Decentralized Data: Blockchains store vast amounts of data in a decentralized manner. The Graph organizes this data, making it accessible and usable for developers and end-users alike.

  • Empowering Developers: By providing open APIs (subgraphs), The Graph allows developers to build applications that can query blockchain data without setting up complex backend infrastructure, similar to how Google provides tools for web developers.

Unique Technology

  • Decentralized Indexing Protocol: The Graph uses a network of nodes called Indexers that index blockchain data in a decentralized manner, enhancing security, reliability, and censorship resistance.

  • GraphQL Integration: Leveraging GraphQL, The Graph allows developers to craft complex queries that retrieve exactly the data they need, improving efficiency and performance.

  • Subgraphs: Developers create and deploy subgraphs, which are open-source APIs that define how blockchain data is structured and can be queried. This modular approach promotes reusability and collaboration.

  • Incentive Mechanisms: The protocol incentivizes participation through roles like Curators, Indexers, and Delegators, who earn GRT tokens for contributing to the network's performance and reliability.

Value to Businesses

  • Streamlined Development: Businesses can reduce development time and costs by utilizing The Graph's indexing and querying services instead of building their own data retrieval solutions.

  • Real-Time Data Access: Access to real-time blockchain data enables businesses to offer timely and relevant services to their users, enhancing user experience.

  • Scalability: The Graph handles complex data queries off-chain, reducing the load on the main blockchain and allowing businesses to scale their applications more effectively.

  • Cross-Chain Support: By supporting multiple blockchains, The Graph enables businesses to develop interoperable applications that can tap into various blockchain ecosystems.

  • Cost Efficiency: Eliminating the need for centralized servers and databases reduces operational costs and infrastructure overhead.

Value to the Crypto Market



  • Ecosystem Development: The Graph is integral to the functionality of many DeFi platforms, NFT marketplaces, and other dApps, fostering innovation and growth within the crypto ecosystem.

  • Standardization of Data Access: By providing standardized APIs, The Graph simplifies data access across different projects, promoting interoperability and collaboration.

  • Enhanced User Experience: Efficient data retrieval leads to smoother user experiences in dApps, encouraging broader adoption of blockchain technology.

  • Decentralization and Governance: GRT token holders participate in the governance of the protocol, contributing to a decentralized decision-making process that aligns with the ethos of blockchain technology.

Financials

  • Market Capitalization: The Graph has a significant market capitalization, reflecting its adoption and critical role in the blockchain infrastructure.

  • Token Economics: GRT has a total supply capped at 10 billion tokens, with allocations for indexing rewards, curation, delegation, and ecosystem development. The tokenomics are designed to align incentives among network participants.

  • Revenue Streams: Revenue is generated through query fees paid by dApps using the network. These fees are distributed among Indexers, Curators, and Delegators, creating a sustainable economic model.

  • Staking and Rewards: Participants can stake GRT tokens to earn rewards, encouraging active participation in the network's security and efficiency.

Growth and Growth Prospects

  • Increasing Adoption: The number of subgraphs deployed has been growing steadily, with thousands of developers and hundreds of applications utilizing The Graph's services.

  • Multi-Blockchain Expansion: Initially supporting Ethereum, The Graph has expanded to support additional blockchains like Binance Smart Chain, Polygon, and others, broadening its market reach.

  • Strategic Partnerships: Collaborations with prominent projects and integration into major platforms enhance The Graph's visibility and adoption.

  • Technological Innovation: Continuous improvements in indexing speeds, query efficiency, and developer tools position The Graph for sustained technological leadership.

  • Ecosystem Grants and Funding: The Graph Foundation provides grants to support ecosystem development, fostering innovation and expanding use cases.

Investor Interest Going Forward


  • Infrastructure Importance: As a foundational layer of the decentralized web, The Graph is positioned as a critical infrastructure project, attracting long-term investor interest.

  • Market Trends Favorable: The growth of DeFi, NFTs, and Web3 applications creates increasing demand for efficient data indexing solutions.

  • Token Utility Drives Demand: The necessity of GRT tokens for network participation and governance ensures ongoing demand.

  • Potential Appreciation: With the expansion of its services and increasing adoption, there is potential for value appreciation of GRT tokens.

  • Risk Factors: Investors should be aware of potential risks, including competition from alternative indexing solutions, regulatory changes, and technological shifts in blockchain protocols.

Conclusion

The Graph (GRT) plays a pivotal role in the blockchain ecosystem by enabling efficient access to decentralized data, earning its reputation as "the Google of Blockchain." Its unique technology addresses a fundamental challenge in the blockchain space, providing significant value to businesses and the crypto market. With strong adoption, expanding capabilities, and a solid financial foundation, The Graph is well-positioned for continued growth. Its role as critical infrastructure in the decentralized web makes it an attractive prospect for investors seeking long-term opportunities in the blockchain sector.

References

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