Jan 4, 2022
2021 was a banner year for creative destruction. In Joseph Schumpeter’s economic theory of “creative destruction,” innovation happens from within before moving outward. From Coinbase’s initial public offering (IPO) to Securitize tokenizing funds that track S&P indices1 for the first time, 2021 marked a year of working from within the old system to make something new.
The United States’ public capital markets are the world’s most advanced and regulatorily strict. As the first digital asset exchange to go public in the U.S., Coinbase bolstered the industry’s creative destruction streak. By turning an exchange that used to be perceived by some as a payments gateway for criminals into a publicly traded company, Coinbase effectively legitimized the broader digital asset industry in the public’s eye.
Following the momentum generated by Coinbase’s IPO, ProShares issued the first U.S. bitcoin-futures ETF. Shortly after, other innovative firms like Valkyrie and VanEck were green-lighted to give investors exposure to their own bitcoin-futures ETFs. While public market investors await spot bitcoin ETFs for more direct digital asset exposure, private capital market investors can already enjoy the economic advantages that the underlying technology brings.
In another example of creating change from within, Securitize and S&P partnered to debut the first-ever tokenized funds tracking S&P indices for accredited and institutional investors. The tokenized funds enable investors to focus on emerging themes like cryptocurrency and new economies technologies like artificial intelligence, automation, and robotics. This innovation from within opens the door to more advancements across the burgeoning field of tokenization.
Year in Review
In 2021, we witnessed economic innovations develop from the inside-out. From IPOs to tokenized institutional funds, creative destruction was up front and center. This trend is set to continue as increased regulatory clarity shapes what’s possible in 2022. Companies creating economic disruption from within the current system are poised to potentially outperform.2
The S&P Cryptocurrency Large Cap Ex-MegaCap Index and the S&P Kensho New Economies Composite Index are products of S&P Dow Jones Indices LLC (S&P DJI), and have been licensed for use by Securitize Capital. S&P® and Kensho® are registered trademarks of Standard & Poor’s Financial Services LLC or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Securitize. Securitize’s funds based on the S&P DJI Indices are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, or their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such products.
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