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1/ The Index-ification of the Alt Investment Universe.
Who will be the category-defining companies of the alt space?
Thread
below
Check out @GoesAlt post #2 on Substack for what will define category leaders in this space https://altgoesmainstream.substack.com/p/the-indexing-of-the-alt-assets-universe
Who will be the category-defining companies of the alt space?
Thread
belowCheck out @GoesAlt post #2 on Substack for what will define category leaders in this space
https://altgoesmainstream.substack.com/p/the-indexing-of-the-alt-assets-universe
2/ @eladgil recently wrote a great blog post about Index Companies.
Index Companies are critical to the growth of their markets because they are an essential component of market infrastructure
Users need them to transact and Markets need them to establish a data reference.
Index Companies are critical to the growth of their markets because they are an essential component of market infrastructure
Users need them to transact and Markets need them to establish a data reference.
3/ Today's universe of alt asset companies (may not be tomorrow's).
4/ Who will become the defining companies of the alt asset space and what makes Index Companies so different and valuable?
5/ 
They benefit from the growth in their space
Index Companies are growth enablers.
They increase transactions in their space - and as their markets grow in size and scale, Index Companies grow in lockstep.
They benefit from the growth in their spaceIndex Companies are growth enablers.
They increase transactions in their space - and as their markets grow in size and scale, Index Companies grow in lockstep.
6/ They are a critical piece of market infrastructure
They are necessary in order to participate in their market.
To access alt funds? @icapitalnetwork
To access startups as a non-accred investor? @joinrepublic
To manage and track trading cards? @OnlyAltOfficial
They are a critical piece of market infrastructureThey are necessary in order to participate in their market.
To access alt funds?
@icapitalnetwork To access startups as a non-accred investor?
@joinrepublic To manage and track trading cards?
@OnlyAltOfficial
7/ They become the personification or identifier of their space
"Uber here," "Google it." @Uber and @Google are verbs.
When brands become verbs, they become significant because the company becomes synonymous with the category.
They become the personification or identifier of their space"Uber here," "Google it." @Uber and @Google are verbs.
When brands become verbs, they become significant because the company becomes synonymous with the category.
8/ They aggregate liquidity
Many Index Companies enable users to exchange value and become incredibly valuable companies because they:
Aggregate liquidity
Provide the platform for discovery
Create the trusted venue for exchange
Be the place where ppl transact
They aggregate liquidityMany Index Companies enable users to exchange value and become incredibly valuable companies because they:
Aggregate liquidity Provide the platform for discovery Create the trusted venue for exchange Be the place where ppl transact
9/ Data is a feature - and becomes the moat
Companies that own the data own the space.
Data is the enabler for liquidity & institutionalization of a financial asset.
Some of the most successful FinTech co's? Data biz @business, @MSCI_Inc, @IHSMarkit
They make markets go.
Data is a feature - and becomes the moatCompanies that own the data own the space.
Data is the enabler for liquidity & institutionalization of a financial asset.
Some of the most successful FinTech co's? Data biz @business, @MSCI_Inc, @IHSMarkit
They make markets go.
10/ They create community
The FinTech companies of tomorrow will win by creating community.
Millennials and Gen Zs want to be part of movements - and they want to put their money where the movement is.
They create communityThe FinTech companies of tomorrow will win by creating community.
Millennials and Gen Zs want to be part of movements - and they want to put their money where the movement is.
11/ Who are Index Companies in alt assets?
In crypto, the possible Index Company is @coinbase. W/ over 35M customers, they are the onramp for mainstream investors to access crypto.
In alt funds, the possible Index Company is @icapitalnetwork with $65B AUM and hundreds of funds.
In crypto, the possible Index Company is @coinbase. W/ over 35M customers, they are the onramp for mainstream investors to access crypto.
In alt funds, the possible Index Company is @icapitalnetwork with $65B AUM and hundreds of funds.
12/ The financialization of everything = the index-ification of everything?
Index providers in traditional financial markets are incredibly valuable.
Look no further than @MSCI_Inc - over $1.7B in 2020 run rate revenue and 58% EBITDA (!) margin.
Index providers in traditional financial markets are incredibly valuable.
Look no further than @MSCI_Inc - over $1.7B in 2020 run rate revenue and 58% EBITDA (!) margin.
13/ Companies that have the ability to create indexes in their market have the potential to become incredibly valuable.
If the financialization of everything occurs, then we will see a new wave of Index Companies create indexes based on their market position and data advantages
If the financialization of everything occurs, then we will see a new wave of Index Companies create indexes based on their market position and data advantages
14/ Imagine if @indify had an index of artists and people could invest in the top 10 artists on @indify.
Imagine if @SubstackInc had an index of writers and people could invest in the top 10 newsletters on @SubstackInc
Imagine if @SubstackInc had an index of writers and people could invest in the top 10 newsletters on @SubstackInc
15/ ETFs and derivatives on trading cards and writers? Not at all out of the question ...
Once there's index-ification of an asset class, then we can see a path to institutionalization.
Once there's index-ification of an asset class, then we can see a path to institutionalization.
16/ When we have a @Fidelity @stockx ETF or an @InvescoUS @OnlyAltOfficial ETF, we'll know which companies can be the Index Companies in their respective markets - literally and figuratively.
And we'll know that Alt Goes Mainstream.
And we'll know that Alt Goes Mainstream.
