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  • Hivemind Brief 002 | Expanding Horizons: Bitcoin’s Next Chapter, Stablecoin Momentum, + Refik Anadol’s Visionary Work

Hivemind Brief 002 | Expanding Horizons: Bitcoin’s Next Chapter, Stablecoin Momentum, + Refik Anadol’s Visionary Work

November 21, 2024

Welcome to The Hivemind Brief!

In this edition you can expect:

Enjoy and we’ll see you in the next one!

From Richard Skeet, Managing Partner and Head of Research

“In the midst of chaos, there is also opportunity.” — Sun Tzu

The macroeconomic landscape in Q3 and October 2024 presents a mixed picture, heavily influencing the digital asset sector. Globally, markets displayed stark contrasts, with the US economy outperforming other major regions like China, Japan, and the Eurozone, which faced contractions due to tighter monetary policies and sluggish growth. Domestically, signs of consumer fatigue emerged as rising borrowing costs, stagnant real wages, and declining affordability weighed on sentiment. However, U.S. equity markets, led by the S&P 500, showed resilience, posting significant gains despite geopolitical tensions and volatile bond markets.

Key macro trends such as expanding global liquidity and dovish central bank tones provided a supportive backdrop for digital assets. The Federal Reserve's easing measures, coupled with a creeping expectation about the election, created tailwinds for Bitcoin, which continued its ascent as a hedge against fiscal imbalances and economic uncertainty. Bitcoin dominance surged, driven by its positioning as a macroeconomic safe haven, while altcoins struggled amid investor caution and Ethereum's underperformance.

Under the new Republican-led government, digital assets are poised for a potential renaissance. President-elect Donald Trump has outlined a bold vision for the sector, emphasizing regulatory clarity, self-custody rights, and opposition to a Central Bank Digital Currency (CBDC). Proposed initiatives such as a Bitcoin and Crypto Presidential Advisory Council and establishing a strategic Bitcoin reserve reflect a pro-innovation stance. Vice President-elect J.D. Vance's alignment with blockchain adoption further underscores the administration's commitment to fostering a favorable environment for digital assets. These policies could accelerate innovation, attract global capital, and position the U.S. as a blockchain and crypto technology leader, setting a promising stage for the sector's growth, assuming campaign promises are kept. Based on market pricing since the election, market participants seem very willing to believe the promises will become reality.

From Sayuri Ganesarajah, Head of Legal and Compliance

In our last newsletter, we reported on the digital assets sector seeing significant regulatory developments with the approval of ETH ETFs, following the approval of BTC spot ETFs. A few months later, it is difficult to not be very optimistic for the digital assets sector following President-elect’s Donald Trump’s result in the US election (see our most recent legal review post-election here), along with a Republican majority in the Senate and the House of Representatives. In addition, Senator John Thune, who has supported crypto-related bills previously, has just been elected to serve as Senate Majority Leader next year.

President-elect Donald Trump is the first politician to lay out bold and direct plans for the digital assets sector during his campaign, including: (i) the immediate appointment of a Bitcoin and crypto Presidential Advisory Council, tasked with designing regulatory guidance; (ii) the firing of Gary Gensler of the SEC; and (iii) plans for the US to maintain a Bitcoin strategic reserve. We will have to wait to see if these campaign promises will materialise. However, the digital assets sector is no doubt optimistic given President-elect Donald Trump’s very public and very pro-crypto stance – a key example being his speech at the Bitcoin Conference in Nashville earlier this year where he stated that he plans to “ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world”. His campaign promises and pro-crypto stance are only emphasised further by his own family launching a DeFi project, World Liberty Financial; and his own team of associates and advisors taking a firm pro-crypto stance, including Vice President-elect, JD Vance and Robert F Kennedy. All signs point to the upcoming months (and potentially years) being a very opportune time for the digital assets sector.

In the UK, we are seeing developments continue in crypto asset regulation with the Guardian Asset and Wealth Management Industry Group (in conjunction with the FCA) publishing guidance this month on a path to realising the benefits of tokenisaton, particularly the tokenisation of funds. In addition, the government is seeking feedback on draft regulations, "The Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations 2025" which are due to come into force on 1 January 2026, which details areas such as reporting and due diligence requirements for reportable crypto asset service providers.

In line with our previous newsletter, the UK continues to press on with steadily tackling crypto asset regulation, not forgetting MiCA which continues to be implemented across the EU in the next two months. However, it’s fair to say that given the results of the US election earlier this month, and now with the announcement that Chair Gary Gensler is stepping down from the SEC as of 20 January 2025, at least in respect of digital assets, all eyes are firmly on the US.

Bitcoin – More Than Digital Gold 

By Richard Skeet, Managing Partner and Head of Research

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“For over a decade, Bitcoin has captivated the imagination of technologists, investors, and economists. Often referred to as "digital gold," Bitcoin has earned this moniker because of its scarcity, resilience, and role as a hedge against economic uncertainty. However, Bitcoin is far more than just a store of value—it is a programmable, decentralized monetary system capable of evolving to support complex financial applications. With a touch of innovation, a wave of use cases could be unleashed directly on the base layer, the question is whether the excitement of a bull market can enable that outcome. We believe it can.”

Stablecoins: 10 Years of Growth and the Road Ahead 

By Kayla Phillips, Investment Principal

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“This month, Tether celebrates 10 years since the launch of USDT, today’s largest stablecoin with a 67% market share. A decade in the making, stablecoins have ballooned to a $180B market with volumes growing 17% YoY. 

Initially created to provide on-chain liquidity for crypto trading and defi, stablecoins have since become embedded in emerging economies as an inflation hedge and remittance medium and are now being adopted by the largest financial institutions in the world to facilitate efficient global money movement and settlement by ‘moving value at the speed of the Internet.’ We are moving towards a future where stablecoins and blockchains underpin our open, global financial infrastructure.  

This means that stablecoins are approaching the critical mass where they are becoming too big to ignore.”

Inside the Collection: Refik Anadol

Winds of Yawanawá at Scorpios in Mykonos, Greece, 2023.

Last month, we shared an overview of how we approach curation within the Digital Culture Fund. Today, we are excited to launch the first edition of our “Inside the Collection” series, a deeper exploration of the artists and works shaping our collection.

We begin with Refik Anadol, a trailblazer in blending data, machine intelligence, and art to redefine human perception and creativity. In this inaugural edition, we spotlight the two remarkable series in our collection: Synthetic Dreams and Winds of Yawanawá. These works not only showcase Anadol’s innovative approach to art but also underscore the transformative potential of technology as a bridge between the natural world and digital creativity.

Our New Podcast: Total Value Unlocked

Last quarter, we announced the launch of our new podcast, Total Value Unlocked.

We wanted to sit down with the leaders and innovators who are unlocking the full potential of blockchain technology and shaping the future of the internet, and share those conversations with you.

Season one dives into the backbone of web3: protocols.

In each episode, we speak with the minds behind major protocols to uncover what’s driving their success, the challenges they’re facing, and how they’re navigating the wider web3 ecosystem.

So far, we’ve been joined by Muneeb Ali, Co-Creator of Stacks, Lily Liu, President of the Solana Foundation, and John Wu, President of Ava Labs. More incredible guests coming your way soon!

Full episodes can be found on X as well as Spotify and YouTube.

Welcome Emmanuel Vallod as Partner and Head of Ventures

We’re thrilled to officially welcome Emmanuel Vallod to the Hivemind team as Partner and Head of Ventures.

Emmanuel joins us at a pivotal moment as we accelerate our mission to back transformative founders and ideas in the digital asset space. With a long track record spanning Stake Capital, GSR Ventures, and BlackRock, his deep expertise bridges early-stage blockchain investments and leading systematic trading teams.

Emmanuel’s advisory role with Berkeley SkyDeck and his dedication to blockchain education also reflects his commitment to supporting the next wave of innovators in this space.

If you're building on blockchain, we’d love to connect!

Hiring

Open Hivemind Positions:

More roles within our network here!

Event Recap

The past few months have been a whirlwind of connections and in-person events! From making waves in the Asia region—speaking at Korea Blockchain Week and Christie's Art + Tech Summit in Hong Kong, championing start-up pitches at Hong Kong Fintech Week, and hosting side events with key partners—to taking the stage stateside at The Tie’s The Bridge in NYC. We also welcomed Tyler Hobbs into our office to share how we’ve displayed his work and host a special dinner to celebrate the launch of his debut monograph, Order/Disorder. On the investor front, we’ve participated in major events like Super Investor and took the stage at Carmo Companies. It’s been an incredible to share insights and meet folks “on the ground” who are building and investing in the space and we look forward to doing even more in 2025.

Stay tuned on X for live updates on where we’ll be next!

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