Grayscale Draws Parallel Between Crypto Growth & Canada Stock Market

In a thrilling plot twist, Grayscale Investments, one of the world’s largest crypto asset management companies, has recently taken to X, drawing parallels between the burgeoning growth of crypto and the Canadian equity market. In its statement shared today, May 11, the crypto asset management firm also put crypto and USD-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 comparing crypto market capitalization to that of various other bonds and markets over the past years. Let’s take a deeper dive into this index.

Crypto Market Capitalization Spikes To Unprecedented Levels

According to the chart shared by Grayscale Investments, the crypto market capitalization, including stablecoins, has risen to unprecedented levels over the past few years. Initially topping the Japanese financial equities as of 2018, evaluating over $500 billion, the market cap has continued to rise gradually. Zooming into 2021, the crypto market capitalization overtook U.S. high-yield corporate bonds, assessing over $1,500 billion.

Subsequently, in 2022 and 2024, the total crypto market capitalization overtook USD-denominated EM bonds, Canadian equity markets, and even global inflation-linked bonds, topping the $2,500 billion mark. This data, collectively, has instilled immense optimism in the crypto community, underscoring the worldwide rising adoption of digital assets.

It’s worth noting that the spike in the digital asset market capitalization coincides with this year’s much-touted ‘bull cycle.’ Bitcoin, Ethereum, and numerous altcoins surged in sync as this year kicked off, primarily aligning with the BTC halving frenzy.

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Grayscale’s Index: What’s The Scoop?

Meanwhile, offering disclosure, Grayscale stated that the Bloomberg Global Inflation Linked Index gauges the investment-grade, government inflation-linked debt from 12 other developed market countries.

On the other hand, the MSCI Canada Index is designed to measure the performance of the Canadian market’s large and mid-cap segments. With 87 constituents, the index wraps approximately 85% of Canada’s free float-adjusted market capitalization.

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