Page 24 - DIY Investor Magazine | Issue 35

INVESTMENT THEME: THE THE DIGITAL ECONOMY
· Oct 2022 24 The digital digital economy is is defined as as the the the the the intersection of of technology digital digital assets and finance Investing in in in in in in in in in in in this theme correlates to the the the the the opportunity of of of investing in in in in in in in in in in in the the the the the Internet in in in in in in in in in in in the the the the the early 2000s Michael Sonnenshein CEO Grayscale Future of of Finance UCITS ETF (GFOF)
DIY Investor Magazine The digital economy is defined as the intersection of reimagining of the global financial system to a a a a a a a new paradigm technology digital assets and finance – these are its three
that harnesses the speed convenience and capabilities of pillars modern financial technology The first technology technology solutions: the leading-edge developments in in technology technology that continue to shape how we live work and play The second digital asset infrastructure: an an an emerging and and growing ecosystem supporting blockchain and and cryptocurrencies The third financial financial foundations: the the players and platforms that underpin the digital economy a a a a a a a a a new generation of financial financial institutions From an investment perspective investing in in in in the digital economy is an infrastructure play not unlike investing in in in in the Internet during the late 1990s and early 2000s At the the time it was was clear the the Internet was was growing and that it it would would be transformational but no one knew how it it would would evolve and what that transformation would ultimately look like That same initial uncertainty currently applies to the digital economy so rather than invest in in in the the uncertainty of its future invest instead in in in in the certainty of its its emergence its its growth and the the fact that it is already re-shaping the the future Michael Sonnenshein CEO of Grayscale Investments an asset manager with a a a a a a product focused on capturing the digital economy economy said ‘the digital economy economy represents a a a a a fundamental
‘INVEST INSTEAD IN IN IN IN THE CERTAINTY OF ITS ITS EMERGENCE ITS ITS GROWTH AND THE FACT THAT IT IS ALREADY RE-SHAPING THE FUTURE’
Our own Grayscale Future of Finance UCITS ETF (GFOF)
is one product that aims to capture these themes in in a a a a single convenient fund but there are many ways for investors to to receive exposure to this global megatrend ’ ‘DISRUPTING TECHNOLOGY AND FINANCE IN IN IN WAYS THAT ARE GENERATING IMMENSE SOCIAL AND ECONOMIC IMPROVEMENTS’
Examples of companies that fall under the digital economy theme include digital asset miners hardware providers exchanges asset managers brokerages payment platforms and others Together these firms are creating greater utility for consumers reshaping business models reorganizing competitive dynamics and redistributing value across industries Digital assets as as perhaps the the most ‘unfamiliar’ group within the the three
pillars is is disrupting technology and finance in in in ways that are generating immense social and economic improvements in in the realm of payments privacy data and more Every investment theme should be considered within the the context of the the macroeconomic environment and the the reality of today’s rising interest rates combined with inflationary pressures has resulted in in global growth coming under pressure Global equity markets experienced a a a a a broad-based downturn that began around the start of 2022 as we continue to face an an ongoing battle with COVID geopolitical conflicts and supply chain issues