Grayscale Highlights Crypto Expansion, Compares Bitcoin (BTC) and Ethereum (ETH) Growth to Canada’s Stock Market Surge

• Grayscale Investments recently drew parallels between the growth of the crypto market and the Canadian equity market, highlighting the rising market capitalization of cryptocurrencies.
• The crypto market cap has surged remarkably, even overtaking U.S. high-yield corporate bonds and global inflation-linked bonds.
• Grayscale’s index reveals insights into the performance of the Canadian market’s large and mid-cap segments.

Grayscale Investments highlights the significant growth of the crypto market, comparing it to the Canadian equity market. The crypto market cap has seen a remarkable surge, even surpassing U.S. high-yield corporate bonds and global inflation-linked bonds.

Grayscale Draws Parallels Between Crypto and Canadian Equity Market

Grayscale Investments, one of the world’s largest crypto asset management companies, has recently drawn parallels between the burgeoning growth of crypto and the Canadian equity market. In its statement shared on May 11, the crypto asset management firm also put crypto and USD-denominated EM (Emerging markets) bonds in the same league, setting off waves across the broader crypto industry.

Unprecedented Levels in Crypto Market Capitalization

According to the chart shared by Grayscale Investments, the crypto market capitalization, including stablecoins, has risen to unprecedented levels over the past few years. Initially topping the Japanese financial equities as of 2018, evaluating over $500 billion, the market cap has continued to rise gradually. By 2021, the crypto market capitalization overtook U.S. high-yield corporate bonds, assessing over $1,500 billion. Subsequently, in 2022 and 2024, the total crypto market capitalization overtook USD-denominated EM bonds, Canadian equity markets, and even global inflation-linked bonds, topping the $2,500 billion mark.

Grayscale’s Index: A Deeper Dive

Grayscale stated that the Bloomberg Global Inflation Linked Index gauges the investment-grade, government inflation-linked debt from 12 other developed market countries. On the other hand, the MSCI Canada Index is designed to measure the performance of the Canadian market’s large and mid-cap segments. With 87 constituents, the index wraps approximately 85% of Canada’s free float-adjusted market capitalization.

Conclusion

The data presented by Grayscale Investments underscores the worldwide rising adoption of digital assets. The remarkable surge in the crypto market cap, which has even surpassed U.S. high-yield corporate bonds and global inflation-linked bonds, highlights the potential and growth of the crypto market. As the crypto industry continues to evolve, it will be interesting to see how these trends develop in the future.