The Scoop: It's time to zoom out

Quick Take

  • Just as investors “zoom out” when short-term charts turn red, let’s take a broader view of the industry as a whole.
  • This column is adapted from The Scoop newsletter.
     
This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group. The views expressed in this column are their own and do not reflect the opinions of their employers. 
 
Summer has come to an end, and while September hasn’t historically been a strong month for crypto, many—including us—were hoping for a more positive start to the final stretch of 2024. The recent jobs report dampened spirits, and the last two weeks of August didn’t fare much better.
 
However, we like to stay optimistic in this newsletter. Just as investors “zoom out” when short-term charts turn red, let’s take a broader view of the industry as a whole.
 
Last week, Laura attended Korea Blockchain Week. While Twitter buzzed with complaints about too many side events spread across distant locations, traffic jams, and community parties lacking a true community feel, the main conference had a strong turnout with high-quality speakers. Laura moderated a panel on the evolving landscape of liquid vs. VC funds with Paola Origel (Hyla Funds), Jack Platts (Hypersphere Ventures), and Kelvin Koh (Spartan Group), highlighting one of 2024's hottest topics.
 
This brings us to the bigger picture. The funds discussed in the panel have weathered two or even three market cycles. For context: back in 2018, only around 50 funds focused primarily on crypto investments. Today, there are over 1,150 globally. To compare, the U.S. alone has about 4,000 registered hedge funds, with approximately 30,000 worldwide.
 
On the venture side, between 2018 and 2023, crypto raised over $72 billion, while general U.S. venture capital raised more than $600 billion in the same period. The balance still tips heavily toward traditional venture capital, but this was also the case in the early days of tech and other industries. Equity remains out of reach for most until it’s publicly traded, and secondary markets are notoriously tricky.
 
While 2024 started with high hopes—especially with the Bitcoin spot ETF and its early performance—the year is shaping up to be more of a transitional period. It’s important not to compare this cycle to previous ones, as the landscape has shifted dramatically.
 
If you're feeling discouraged, taking a break might help, but zooming out to see the long-term trends may offer an even better perspective.
 
The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter, which hits inboxes on Tuesday and Friday mornings.
 
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Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Editor

To contact the editor of this story:
Jason Shubnell at
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