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Weekly Axis - December 30, 2023

Year End - More 2024 Predictions

Author

Adam Blumberg
December 30, 2023

The Year End Edition. More ETF Watching.

More ETF watching this week, but now it’s getting really fun. Yesterday, most of the players came in with their final applications, after the SEC laid out for the what would need to be included.

We’ll also hit a couple more Bitwise Predictions for 2024, and a Deep Dive into another NFT topic

We’ve already seen fee competition, with Galaxy coming in with no fees for the first 6 months and $5 billion AUM.

So the Bitcoin Spot ETF is going to be approved in a few weeks.

We’ll also hit several more of the Bitwise ETF predictions this week for you.

Let’s go!

Are you ready for the Spot ETFs? Do you know what conversations you’ll have with your clients?

We can help

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Axis News Updates

📉Stablecoins to Overtake Visa? Exploring the Bitwise Prediction for 2024

🔮 2024: The Year of the Stablecoin 

The Bitwise team, led by Ryan Rasmus, predicts that by 2024, stablecoins will surpass Visa in terms of money settled. Imagine that! Stablecoins, which have already grown from zero to a $137 billion market, are set to become the go-to for transactions.

🔍 Why This Matters to You and Your Clients 

The reason behind this shift? An exponential increase in stablecoin transactions. Big players like Visa and PayPal are already integrating stablecoins, recognizing their benefits like instant settlement and lower transaction fees. This isn't just about DeFi enthusiasts anymore; it's going mainstream, and your clients need to be ready for it.

🌍 Global Transactions Made Simple 

Consider the implications for international transactions. Stablecoins are a game-changer, especially in countries with volatile currencies. They offer stability and ease, something we've all been craving in the financial world. Plus, companies like Coinbase are making stablecoin transactions as easy as sending a text.

💼 Advising Clients in a Stablecoin World 

As financial advisors, this is an important shift. Our clients will increasingly deal with stablecoins, whether they're sending money overseas, receiving payments, or making everyday purchases. They'll look to us for guidance on using digital wallets, understanding the risks, and navigating this new digital currency landscape.

📈 The Ripple Effect on Market Values 

Here's where it gets even more interesting for us: The rise in stablecoin transactions will impact the value of various blockchain networks. Remember, more transactions on Ethereum, Polygon, or Solana can mean demand for their native tokens, and possible price moves

👩‍💼 Your Role as a Financial Advisor 

Your role is about to get even more vital. You'll need to educate your clients about stablecoins, help them with security and wallet setup, and advise them on how to balance traditional and digital assets. Plus, you'll need to keep a pulse on how this shift affects the broader financial market.

Bitwise Prediction 7 - Taylor Swift will Launch an NFT Project - but not like you think

This was a fun prediction from Ryan and the Bitwise Team - Taylor Swift will launch an NFT

Taylor Swift and NFTs - More Than Just Music

Picture this: Taylor Swift, the most streamed artist on Spotify in 2023, launching her own NFTs. It's not just about the music anymore. It's about a new way to connect with fans. Spotify is already experimenting with token-gated playlists. Imagine needing a specific NFT to listen to certain tracks. This move by Swift could bring a massive adoption wave to the NFT space. Why? Simply because of her enormous influence.

Beyond the Glam - The Real Deal with NFTs

But here's where it gets even more interesting. It's not just about fandom anymore. It's about real, tangible value. NFTs are stepping beyond the realm of fads and collectibles. We're talking about leveraging them for intellectual property and royalties.

Take the Bored Apes or CryptoPunks, for example. Owning these NFTs could mean getting a share of the revenue if they're used in a cartoon or a series. It's an investment with potential income streams.

What This Means for You, the Financial Advisor

As financial advisors, this opens up a whole new avenue of opportunities and challenges. Imagine your clients owning NFTs that not only offer unique experiences but also act as potential income sources. This shift could redefine how we view memberships and exclusivity in the digital asset space.

The Implications Are Huge

This isn't just limited to music. We're looking at a future where sports teams, airlines, and even coffee giants like Starbucks could use NFTs in their loyalty programs. The implications are massive. As a financial advisor, understanding the value and security of these digital assets becomes crucial.

Your role could evolve into advising clients on NFT investments, understanding the associated risks, and even helping them navigate the secondary market for these tokens.

Deep Dive

🌐Embracing Web3 in Mortgage Processes: How NFTs Can Revolutionize Home Ownership

The Genesis of Crypto and Its Connection to Mortgages

Interestingly, the inception of Bitcoin, which spearheaded the crypto and DeFi movement, was a direct response to the mortgage meltdown. This historical event underscores the deep interconnection between traditional finance and the emerging digital financial landscape.

The Role of Title Insurance in Traditional Mortgages

In a standard mortgage scenario, you're likely familiar with the role of title insurance companies. They ensure the legitimacy of property ownership, safeguarding buyers (like you) against any historical claims on the property. This service, although crucial, comes with a hefty price tag, ranging from $1,000 to $3,000, depending on the home's value.

Introducing NFTs in Property Ownership

Now, let's shift gears to the exciting part – Non-Fungible Tokens (NFTs) in home ownership. NFTs, predominantly known for their association with digital art and collectibles, have a much broader potential. Imagine an NFT representing your ownership in a home. This token would exist on a blockchain, with its ownership reflected in your digital wallet.

How Would This Work?

This NFT, linked to your property, would contain all relevant details about your home. It's not about trading your home like a piece of art on OpenSea; rather, it's about the transparency and ease of tracking ownership and history of the property. Moreover, this NFT could be co-managed by your wallet and the bank's (due to the mortgage), ensuring a seamless transfer process and safeguarding against unauthorized transactions.

The Benefits for Governments and Homeowners

This shift to blockchain-based property records could significantly reduce governmental expenses on database management, redirecting funds to other essential services. For homeowners, it means a more secure, transparent, and efficient way of managing property records and related transactions.

The Future of NFTs in Home Ownership

The future holds immense potential for integrating NFTs with home warranties, renovations, and improvements, creating a comprehensive digital footprint of your home's history. This integration could revolutionize property appraisals, making them more accurate and streamlined.

Final Thoughts

As financial advisors, understanding this evolving landscape is crucial. The integration of Web3 and NFTs in traditional processes like mortgages isn't just a possibility; it's an impending reality. It's our responsibility to stay ahead, comprehend these changes, and guide our clients through this exciting new era of digital finance.

2024 is going to be a banner year for crypto and blockchain adoption, so we’re glad you’re here to get ready for it and help your clients.

Happy New Year!

-Adam and Ron