Bitcoin Ascent to official status could boost this ETF
Despite much turbulence this year, bitcoin remains the largest cryptocurrency by market capitalization, but it remains far from “official currency” status of any kind.
Much of that has to do with adoption rates, but on the upside for digital asset supporters, there is plenty of room for growth in bitcoin adoption. As the percentage increases, the digital currency’s status will solidify, potentially lending support to other assets as well.
Investors looking to play this trend via equities have several options among exchange-traded funds, including VanEck Digital Transformation ETF (DAPP). DAPP tracks the MVIS Global Digital Assets Equity Index and could be one of the ideal equity plays to capitalize on long-term bitcoin adoption rates and the cryptocurrency’s rise in status.
“And while it is impossible to say exactly when Bitcoin will reach global adoption, the current growth rate suggests that it could happen within the next 23 years. That is, Bitcoin could become an official medium of exchange by 2045. Bankless Times says however, that this is only a prediction and that the actual timeframe may be shorter or longer depending on various factors,” reports Bankless times.
DAPPs are a potentially attractive way for investors to participate in various digital asset adoption and usage trends without having to hold those assets directly. The ETF, which is almost a year and a half old, has 24 stocks – most of which are “crypto-correlated”. Translation: While DAPP doesn’t directly own bitcoin, the fund’s structure positions long-term investors to take advantage of some compelling trends.
“Our research suggests that the world will have adopted Bitcoin payments by 2045, based on data from historical adoption curves. These point to Bitcoin global adoption reaching 65% by that year,” said Bankless times CEO Jonathan Merry.
Global usage of bitcoin could rise to 10% by 2030. Should this forecast prove to be accurate or close to accurate, DAPP holdings like Coinbase (NASDAQ: COIN ), Block (NYSE: SQ ) and the abundance of bitcoin miners will be held by ETFs are credible receivers.
“Bankless Times bases its prediction on a recent Blockware Solutions report on Bitcoin adoption. The latter had made estimates of the cryptoasset’s growth based on the average and weighted average of the historical technology adoption curves. Similarly, Blockware’s survey assessed Bitcoin’s adoption growth,” according to the research firm.
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The opinions and forecasts expressed herein are solely those of Tom Lydon and may not materialize. Information on this website should not be used or construed as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.
