Key Takeaways
- • Grayscale head of research Zach Pandl says Ethereum, Solana and BNB Chain "are not a consensus trade" among crypto-native investors, who are chasing Zcash and Hyperliquid instead.
- • Pandl expects trillions of dollars in assets to move on-chain, with almost all of that activity requiring a smart contract platform, including tokenized real-world assets, stablecoins and tokenized bank deposits.
- • Grayscale estimates Bitcoin bottomed near $58,000 at the end of June, with prices recovering despite a Fed rate increase, rising long-term bond yields and the failure of the CLARITY Act.
- • Pandl does not expect another Fed rate hike this month, though one more increase in December is possible, and says Bitcoin can absorb one to three small hikes.
- • Pandl credits the CFTC with progress on rules that would let firms use perpetual futures platforms such as Hyperliquid to hedge balance sheets or run carry trades.
Summary
Grayscale's head of research, Zach Pandl, argues that the larger opportunity in crypto may lie in large smart contract networks that crypto-native traders are overlooking. According to the Cryptonews.net report, Pandl said Ethereum, Solana and BNB Chain "are not a consensus trade" among crypto natives right now, and advised investors to "don't sleep on the classics." He described the three networks as having "an absolute key role to play in a crypto portfolio."
Pandl's case rests on traditional finance moving on-chain. He expects trillions of dollars in assets to migrate on-chain, and said almost all of that activity will need a smart contract platform, including tokenized real-world assets, stablecoins and tokenized bank deposits. He said many crypto-native investors are instead buying privacy tokens and revenue-generating projects while overlooking core infrastructure.
On Zcash, for which Grayscale offers investment products, Pandl remains positive. He argued that crypto has exported innovations such as stablecoins and perpetual futures to Wall Street, and now needs to import financial privacy from traditional finance. He expects Zcash to keep gaining share among privacy-focused currencies and expects privacy tools to spread to smart contract platforms, stablecoins and perpetual futures markets, calling privacy "a huge part of the next cycle."
Pandl said perpetual futures will become a standard instrument for both institutional and retail traders, pointing to Grayscale's Hyperliquid ETF for US investors as evidence of demand. For firms like Grayscale, he said the open questions are regulatory, namely whether they can use these platforms to hedge balance sheets or run carry trades, and he credited the CFTC with making progress on those rules.
Pandl's broader market view is constructive. Grayscale estimates Bitcoin bottomed near $58,000 at the end of June, and prices have recovered despite mixed news, including a Federal Reserve rate increase, rising long-term bond yields and the failure of the CLARITY Act to pass. He read that resilience as a sign crypto was oversold over the summer, and said institutional clients buying Bitcoin and Ethereum ETFs still view them as long-term portfolio diversifiers. He linked part of the summer sell-off to pressure on Stretch (STRC), the preferred product issued by Strategy, which peaked around Bitcoin's late-June low and has eased as STRC moved back toward its $100 target price.
On rates, Pandl does not expect another Fed hike this month, calling a pre-election hike "a bit bold," though one more increase in December is possible. He said Bitcoin can absorb one to three small hikes, since tightening on the scale of the 500 basis points seen in 2022 and 2023 is not expected. He attributed higher rates to heavy borrowing by both the government and private companies funding the AI buildout.
Pandl's case rests on traditional finance moving on-chain. He expects trillions of dollars in assets to migrate on-chain, and said almost all of that activity will need a smart contract platform, including tokenized real-world assets, stablecoins and tokenized bank deposits. He said many crypto-native investors are instead buying privacy tokens and revenue-generating projects while overlooking core infrastructure.
On Zcash, for which Grayscale offers investment products, Pandl remains positive. He argued that crypto has exported innovations such as stablecoins and perpetual futures to Wall Street, and now needs to import financial privacy from traditional finance. He expects Zcash to keep gaining share among privacy-focused currencies and expects privacy tools to spread to smart contract platforms, stablecoins and perpetual futures markets, calling privacy "a huge part of the next cycle."
Pandl said perpetual futures will become a standard instrument for both institutional and retail traders, pointing to Grayscale's Hyperliquid ETF for US investors as evidence of demand. For firms like Grayscale, he said the open questions are regulatory, namely whether they can use these platforms to hedge balance sheets or run carry trades, and he credited the CFTC with making progress on those rules.
Pandl's broader market view is constructive. Grayscale estimates Bitcoin bottomed near $58,000 at the end of June, and prices have recovered despite mixed news, including a Federal Reserve rate increase, rising long-term bond yields and the failure of the CLARITY Act to pass. He read that resilience as a sign crypto was oversold over the summer, and said institutional clients buying Bitcoin and Ethereum ETFs still view them as long-term portfolio diversifiers. He linked part of the summer sell-off to pressure on Stretch (STRC), the preferred product issued by Strategy, which peaked around Bitcoin's late-June low and has eased as STRC moved back toward its $100 target price.
On rates, Pandl does not expect another Fed hike this month, calling a pre-election hike "a bit bold," though one more increase in December is possible. He said Bitcoin can absorb one to three small hikes, since tightening on the scale of the 500 basis points seen in 2022 and 2023 is not expected. He attributed higher rates to heavy borrowing by both the government and private companies funding the AI buildout.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.