Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.

2023 Digital Asset Industry Outlook

Arca's industry experts provide their insights and outlook for the new year.

The crypto industry will see an uptick in businesses focused on the core tenets of blockchain: decentralization, transparency, and auditability.

Digital asset adoption will accelerate in areas with underdeveloped financial markets.

Utility with tangible value propositions will drive long-lasting adoption of digital assets.

Digital assets as an asset class will continue to decouple from traditional markets and remain uncorrelated for the foreseeable future.

Blockchain growth will be driven by the onboarding of Web2 and TradFi corporates.

TradFi will start to lose market share to DeFi.

TradFi companies will see more of their employees using professional development plans to learn about blockchain technology.

Universities with top business schools will offer the option for a concentration in blockchain technology.

Governments worldwide will continue to encourage mainstream blockchain adoption by funding and promoting education.

Web2 companies will continue to utilize NFTs to strengthen customer relationships.

An increased focus on transparency, immutability, and analysis will help DeFi gain market share.

The gaming industry will continue implementing Web3 tooling, providing players with enhanced ownership of in-game assets.

TradFi companies will focus on tokenizing traditional assets, especially in private markets.

TradFi internal working groups will evolve into product and development teams that partner with digital asset startups to build blockchain-based products.

A universally accepted institutional stablecoin will be developed and launched.

There will be a more overt distinction between investing in blockchain technology infrastructure, Web3, and cryptocurrencies.

While the market size shrinks during the “crypto winter,” we will continue to see traditional financial services companies announce plans to enter the blockchain ecosystem.

We will see increased regulatory clarity in the U.S., ultimately paving the way for increased corporate issuance, blockchain adoption, and capital allocation.

Interested in learning more about digital assets?

Blog

Fixing Token Valuations: Arca Proposes Adjusted Market Cap Standard

Traditional Markets Are Still on 9-to-5—The World Isn’t

The Rise of Value Investing in the Maturing Digital Assets Market

Arca

Contact Us