“3 observations and a chart” on the latest in the digital assets sector
Morgan Stanley becomes first wirehouse bank to allow wealth advisers to recommend BTC ETF – Bitcoin is a part of everyday portfolios
Morgan Stanley, which advises on more than $1.7 trillion of client assets, became the first wirehouse bank to allow its wealth advisers to recommend the BTC ETF for investment. Morgan Stanley’s 15,000 financial advisors are now allowed to solicit eligible clients to purchase two of the Bitcoin ETFs (BlackRock’s IBIT and Fidelity’s FBTC). According to CNBC, the bank “made the move in response to demand from clients and in an attempt to follow an evolving marketplace for digital assets.” We think it is hard to overstate the importance of the endorsement of Bitcoin as an investable asset from major wirehouse banks and asset managers.
California digitizes 42 million car titles – government use case for blockchain
California became the first state to digitize and record car titles on a blockchain. The state recorded more than 42 million car titles on the Avalanche blockchain. Residents will be able to use a secure wallet application to access their car titles. They will be able to transfer car titles in minutes, bypassing the DMV and post office in a process that could take weeks under the old system. We highlight the ongoing development of real world use cases for blockchain technology like a digital distributed ledger that facilitates the fast and secure transfer of assets across the Internet.
Helium Network token rallies on adoption of Helium Mobile wireless phone service – commercial use case for blockchain
HNT, the digital asset token associated with the Helium wireless network, rallied in July and August, surging over 90% on the back of commercial success of the Helium Mobile wireless phone service. The number of Helium Mobile subscribers, or entities using mobile devices or sensors that communicate over the Helium Network, exceeded 100,000 in early July. The tally has increased over 300-fold in one year. Helium uses crypto-incentives to encourage participants to contribute excess wireless bandwidth from their home network into the Helium system to create a robust decentralized wireless network and earn HNT tokens. Helium then offers a low-cost fully functioning wireless network to consumers, like the $20 unlimited wireless plan in a number of cities backstopped by T-Mobile. We highlight a strong example of commercially viable use cases for blockchain technology in facilitating the buildout and operation of critical physical infrastructure.
Chart of the Month – Bitcoin Defends Purchasing Power
Arena Digital Capital Partners is a liquid evergreen fund open to monthly subscriptions. We are always happy to discuss further with you or investors you think may have an interest in the sector. Please reach out to Bill Cline at williamc@arenadigital.capital.
Sincerely,
The Arena Digital Capital Management Team
Michael Schwartz, Michael Prober & William Cline
Arena Digital Capital Management was founded in January 2022 by three experienced traditional finance hedge fund professionals who have been deploying personal capital in the digital asset ecosystem since 2018. The team has managed billions of dollars of capital for high net worth individuals, family offices, and institutions ranging from pension plans and endowments to sovereign wealth funds. We have worked closely with institutional consultants, RIAs, and other advisors in serving their clients.
In May 2022 we launched Arena Digital Capital Partners, with the goal of providing a multi-strategy investment vehicle to access the digital asset ecosystem. Our mandate is to offer broad exposure across the growing digital asset and blockchain sector with an appropriate level of diversification, professional oversight, and manager selection. Our collection of skill sets and our history in the business allows us to understand, assess, and engage with the practitioners of this nascent asset class with a level of diligence required to be responsible stewards of capital. We are happy to periodically share our observations with you.
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