Welcome to The Weekly Axis.

We got more adoption from a key money transmitter this week, more ETF’s, and a deep dive on a possible future of personalized portfolio

Axis Updates

Catch up on this week’s big crypto stories.

MoneyGram Embraces Crypto: Introducing Digital Wallets for Global Transactions

Summary: MoneyGram, a prominent money remittance company, has announced its foray into the world of cryptocurrencies by offering digital wallets. This move is significant for several reasons. Firstly, it challenges the traditional remittance industry, which has long been criticized for high fees, by providing a more cost-effective and efficient alternative. MoneyGram's decision to adopt Stellar Lumens (XLM) blockchain technology instead of Ethereum or other popular platforms is also noteworthy. The launch of these wallets has the potential to impact the value of XLM and increase its adoption. With MoneyGram's extensive reach and established customer base, this development could have far-reaching implications for the crypto industry.

Implications for Financial Professionals: The adoption of digital wallets by MoneyGram signals a growing trend towards self-custody and decentralized finance. Financial professionals need to understand the safety and security aspects of wallets and help clients navigate this new landscape. As more financial transactions move onto blockchain networks, advisors must be prepared to assist clients with instant settlement, lower fees, and the integration of crypto assets into their portfolios. This shift also opens up opportunities for additional applications and services built on top of blockchain technology. Financial professionals should stay informed about these developments to provide clients with accurate and relevant advice regarding the safe and secure utilization of crypto assets.

Overall, the entry of a major player like MoneyGram into the crypto space underscores the increasing acceptance and mainstream adoption of cryptocurrencies. Financial professionals who embrace this shift and equip themselves with the necessary knowledge and expertise will be well-positioned to guide their clients through the evolving landscape of digital assets.

Catch up the news here

VanEck, Valkyrie, and others to launch ETH Futures ETFs Monday

Summary: Even with the testimony in front of the House Financial Service Committee, and the delay of the Bitcoin Spot ETF applications, the SEC found time to approve ETH Futures ETFs, VanEck and Valkyrie. Both firms will begin trading the ETFs on Monday, Oct. 2. It was interesting timing, as it might have been done to beat the possible government shutdown. Also interesting because, in the Grayscale case, the judge mentioned there isn’t much difference between a spot ETF and futures ETF. There was talk that the SEC might dis-allow all crypto futures ETFs to fix this inconsistency.

Impact on Financial Professionals: This obviously means, first, that there is now a way to put ETH exposure into retirement plans, and other brokerage accounts with custodians, RIAs, and B/Ds that are currently not allowing crypto. It also tells us the SEC isn’t going to take away all crypto futures ETFs right now. This along with the delay in the spot ETFs tells us the SEC may be looking for other reasons to deny spot BTC applications. We can also make an educated guess that, once a BTC spot ETF is approved, and ETH spot ETF will be approved shortly thereafter.

Catch up on the news here

Deep Dive

The Future of Investing: Hyper-Personalized Portfolios with AI and Blockchain

Summary: The concept of hyper-personalized portfolios, driven by blockchain technology and AI, is discussed in this podcast episode. The host explains that blockchain, such as Ethereum, is a decentralized database that can potentially store public stocks and assets. Tokenizing assets, like real estate funds, allows for increased efficiency and transparency in managing and tracking investments. The host envisions a future where AI and robo-advisors can analyze an individual's situation, including their income sources and geographical location, to create portfolios tailored to their specific needs and risk profiles. This hyper-personalization is made possible by the transparency and transferability of assets on the blockchain. The host believes that this evolution is not far off, as companies like BlackRock and the London Stock Exchange are already exploring blockchain technology.

Impact on Financial Professionals: Financial professionals, including financial advisors and CPAs, need to stay informed about the potential impact of blockchain and AI on portfolio management. The adoption of hyper-personalized portfolios could revolutionize the way advisors approach investment strategies. They will need to understand how to navigate tokenized assets and leverage AI tools to analyze client data and create customized portfolios. This shift towards hyper-personalization will require financial professionals to adapt their practices and embrace new technologies. By staying ahead of these developments, advisors and CPAs can better serve their clients and provide tailored investment solutions that align with their clients' unique circumstances and goals.

If you have any question or topics you would like to see addressed, please send to [email protected]

Thanks for reading.

Have a fantastic weekend.

— Adam

Week of Sept. 25, 2023