#227: A +530% Base Case
In this email:
What is VanEck?
VanEck's latest report on the investment case for Ethereum
Ape of Omaha’s Takeaway
Who is VanEck?
VanEck is an American investment management firm primarily engaged in issuing ETFs.
~$89B under management (as of year-end 2023).
One of the first US asset managers to offer investors access to international markets and gold investing.
VanEck is known for being early adopters of new trends, recently focusing on digital assets.
VanEck's Case for Ethereum
VanEck's digital assets research team has recently updated their model on Ethereum, and here are some points made in their latest report that are indicative of an inflection point in the cryptocurrency’s progress:
Big Tech’s participation will increase in the Ethereum network -- given Ethereum says a dominant player in the smart contract space, a $66B in free cash flow attributable to token holders may amount to ~$22,000 per coin by 2030
The Total Addressable Market (TAM) is now updated to ~$15T, the main sectors being finance, advertising, gaming, infrastructure, and AI.
Ape of Omaha’s Takeaway
Ethereum is simply cost-saving to businesses and users.
Now, that does not necessarily mean that big players like Apple and Google will wholly move their infrastructure over to the Ethereum network.
However, I cannot ignore this one data point:
"Credit card processors and other payment apps like PayPal syphon 1.94% of all payments while Visa charges 1.79-2.43% or more. By contrast, on Ethereum, users pay around 0.001% for a simple transfer.”
💡 Ape of Omaha’s Takeaway:
Players in Big Finance, Big Tech, and Big Data all have obvious benefits to gain by slowly (and conservatively) migrating to Ethereum's network and infrastructure.
To me, that fundamental driving factor is a necessity to support the idea that Ether’s price will be pushed up in the long run — my bullish stance on Ethereum has not changed much since this post from 2022.
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