Cryptocurrency a Key Disruptive Innovation
The world of disruptive innovation is constantly evolving, ushering in groundbreaking technologies and reshaping industries. From the rise of cryptocurrencies like Bitcoin to advancements in artificial intelligence and electric vehicles, these innovations are transforming the way we live and do business. While the term “disruptive innovation” may be relatively new, its impact is undeniable.
One key area of disruptive innovation is the cryptocurrency market. According to Todd Rosenbluth, VettaFi head of research, the introduction of spot bitcoin ETFs seems increasingly likely in the near future. While futures-based bitcoin ETFs like the ProShares Bitcoin Strategy ETF (BITO) already exist, the demand for spot-based products is growing. This demand is fueled by investors who prefer to invest in ETFs and want exposure to the crypto market.
VettaFi recently hosted a webcast with Bitwise, discussing the impact of futures on the crypto market. The attendees, predominantly advisors, expressed their plans for allocating capital to cryptocurrencies. Approximately 30% of respondents stated they intended to invest in the asset class within the next 12 months, while 24% planned to do so in more than 12 months. This growing interest signifies a shift in perception as more people educate themselves about cryptocurrencies.
In addition to cryptocurrencies, thematic ETFs focusing on various cutting-edge technologies, such as artificial intelligence, robotics, and online retail, are gaining traction. These strategies offer opportunities for higher returns but also carry risks. Zeno Mercer, VettaFi senior research analyst, emphasizes the steady growth of the crypto market and its potential synergies with AI and blockchain.
Disruptive Innovation Nothing New
Disruptive innovation has always been a part of human history, continually shaping our world and revolutionizing industries. Giants like Blockbuster, Sears, and Kodak faced downfall when they failed to adapt to changing technologies, business models, and consumer behaviors. From the discovery of fire and invention of the wheel to the digital age with personal computers and the internet, disruptive innovation has always been present.
Despite some innovations taking time to gain widespread adoption, the pace of change is accelerating. Consider the internet, which took nearly two decades to become a mainstream tool. Today, smartphones are ubiquitous, and the next generation is growing up with AI technology in their pockets. This raises the question of when personal AI and decentralized cryptocurrencies will become the norm, potentially reshaping the banking and currency landscape.
Redefining Thematic Investing
While the ARK Innovation ETF (ARKK) gained attention as a disruptive technology investment, other funds deserve recognition, such as the iShares Exponential Technologies ETF (XT). Both funds offer different approaches to investing in disruptive technologies, with XT outperforming ARKK since its inception.
In conclusion, the world of disruptive innovation is constantly evolving, ushering in new technologies and transforming industries. Cryptocurrencies, along with thematic ETFs focusing on cutting-edge technologies, provide investors with opportunities for growth and diversification. As we continue to witness the transformative power of disruptive innovation, the potential for even greater advancements is on the horizon.
What is disruptive innovation?
Disruptive innovation refers to the introduction of new technologies or business models that disrupt existing markets, industries, or traditional ways of doing things. These innovations often bring about significant changes and reshape the way we live and work.
What are thematic ETFs?
Thematic ETFs are exchange-traded funds that focus on specific investment themes, such as disruptive technologies (like artificial intelligence or robotics), renewable energy, or e-commerce. These ETFs allow investors to gain exposure to a specific theme or industry rather than investing in individual stocks.
What is a spot bitcoin ETF?
A spot bitcoin ETF is an exchange-traded fund that provides investors with exposure to the actual underlying asset – bitcoin – rather than futures contracts. This allows investors to directly own bitcoin through their investment in the ETF.
What is the significance of disruptive innovation?
Disruptive innovation plays a crucial role in driving progress and shaping the future. It can lead to the creation of new industries, the transformation of existing markets, and the improvement of products and services. Embracing disruptive innovation is essential for businesses and investors to stay competitive and adapt to changing times.