Enterprise Adoption in a Bear Market

In the past week, we have seen three big Web3/Crypto announcements from large enterprises. First, Google has announced that it will accept crypto payments for cloud services, via a partnership with Coinbase. Second, BNY Mellon officially launched its cryptoasset custody business which was announced last year. BNY Mellon, founded by Alexander Hamilton, is the oldest American bank and one of the largest custodians of financial assets in the world. Finally, VISA announced a partnership with FTX to offer crypto payments in Latin America.

Analysis: Enterprise adoption of Web3 should continue and even accelerate in the bear market. There are several reasons for this. First, the market is simply too big to ignore. Second, these initiatives are months if not years in the making and once a big company sets out to do something it is likely to see it through. Third, the technology is increasingly ‘ready for prime time.’ Fourth, the growing popularity of NFTs has moved decision making from technology departments to marketing and head office. Some low-tech NFT initiatives are having outsized business impacts and so others will follow. Finally, the ‘greening’ of Ethereum with the move to proof-of-stake removes the ESG overhang making it easier for consumer facing brands to build in Web3.

Alex recently sat down for an interview in New York with Decrypt Media to discuss the enterprise adoption narrative. Check that out here.

Is the Bottom in for Bitcoin?

In this week’s Quantitative Analysis section (bottom of this newsletter) we re-examine some of our favourite metrics to gauge whether the floor is in for Bitcoin. We conclude that for the patient investor, now is a very attractive entry point to make a Bitcoin allocation and the data supports it. Learn more about the carbon-neutral Ninepoint Bitcoin ETF (BITC.U: TSX).