America is at significant risk of falling into irrelevance where the potential next big wave of innovation is concerned.
Talent and money is now more and more flowing to Europe and Canada primarily because of the uncompromising attitude of the US government.
The latest example is Galaxy Digital, a financial services and investment management firm focused on digital assets, blockchain tech and the like, founded by Michael Novogratz, the billionaire hedge fund manager.
This is a typical company you would have expect to be listed with much fanfare on Nasdaq, ringing those bells in New York squares.
They are to begin trading this Monday on the Toronto Stock Exchange (TSE) however, not in the American markets.
That’s a sea change and it can have significant long term ramifications for the US economy as its arrogance is driving away talent and that means innovation and that means the future.
Canada has been only too happy to take the opportunity to make itself relevant. We for example didn’t even know Toronto had a stock exchange. Now we do, and now plenty are probably wondering what else is listed there.
The bitcoin ETF, that’s what. An actual ETF. The world’s first if we’re not mistaken, and a decent alternative for many to physically holding bitcoin themselves.
Europe was the first to grab the opportunity, and bitcoin or eth ETPs there are starting to become a competitive field.
It has plenty left to develop. Like managed assets in an ETF. Crypto ones as well as only bitcoin or eth. More risky ones perhaps like all these defi tokens or whatever hot new area. And of course companies themselves. Kraken, Bitstamp, and the list goes on.
There is already a somewhat streamlined market in Europe where a company listed on any European exchange is buyable without more paperwork from anywhere in Europe.
That can be extended to Canada, Switzerland, and others, to create an investment market as big as that, or even bigger than, America’s.
The American government can then keep on shouting at new financial technology despite its clear New York License lessons, a New York that is now bowing in shame for attempting to politicize regulations just as the Securities and Exchanges Commission is doing and apparently the American president himself with his ‘go after bitcoin.’
SEC moreover has a protectionist regime in as far as if you want to buy foreign stocks, you need tons of paperwork, but that affects only Americans.
Europeans and Canadians on the other hand are moving, and as a wise man once said: in the battle between energy and entropy, the one moving wins.