Markets
Grayscale draws a parallel between the growth of crypto and the Canadian stock market
In an exciting twist in history, Grayscale Investments, one of the largest companies in the world cryptography asset management companies, recently adopted X, drawing parallels between the soaring growth of crypto and the Canadian stock market. In its statement shared today, May 11, the crypto asset management firm also placed crypto and dollar-denominated EM (emerging markets) bonds in the same league, setting off waves across the broader crypto industry.
Grayscale and Bloomberg appear to have shared an index that compares the market capitalization of cryptocurrencies to that of several other securities and markets in recent years. Let’s delve deeper into this index.
Crypto Market Capitalization Reaches Unprecedented Levels
According to the chart shared by Grayscale Investments, crypto market capitalization, including stablecoins, has reached unprecedented levels in recent years. Initially outperforming Japanese financial stocks in 2018, valuing over $500 billion, the market capitalization continued to gradually increase. Fast forward to 2021, the market capitalization of cryptocurrencies has surpassed US high-yield corporate bonds, valued at over $1,500 billion.
Subsequently, in 2022 and 2024, the total crypto market capitalization surpassed US dollar-denominated EM bonds, Canadian equity markets and even global inflation-linked bonds, surpassing the $2.5 billion mark. This data, collectively, has inspired immense optimism in the crypto community, highlighting the growing global adoption of digital assets.
It is important to note that the increase in the market capitalization of digital assets coincides with this year’s much-touted “bull cycle.” BitcoinEthereum and several altcoins emerged in sync earlier this year, mostly aligning with the BTC halving frenzy.
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Grayscale index: what is the result?
However, offering disclosure, Grayscale said the Bloomberg Global Inflation Linked Index measures the investment-grade inflation-linked government debt of 12 other developed market countries.
On the other hand, the MSCI Canada Index is designed to measure the performance of the large and mid-cap segments of the Canadian market. With 87 constituents, the index represents approximately 85% of Canada’s free float-adjusted market capitalization.
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