VanEck Uranium and Nuclear ETF · AMEX:NLR
VanEck Uranium and Nuclear ETF — VanEck — Investor Presentation (June 2021)
33 slides from VanEck Uranium and Nuclear ETF's investor presentation, Jun 22, 2021
Slide 1: Ethereum: Bull & Bear Case
June 22, 2021 DIGITAL ASSETS Ethereum: Bull & Bear Case Speaker: Matthew Sigel Head of Digital Assets Research – VanEck Moderator: Kyle DaCruz Director, Digital Asset Product – VanEck
Slide 2: Agenda
What is Ethereum 3 Stablecoins: ETH’s first killer app 15 DeFi & Web 3.0: The Next Killer Apps 22 ETH 2.0: The Supply Side Debate 26
Slide 3: What is Ethereum?
Varitek’ What is Ethereum?
Slide 4: Intro to Ethereum
Ethereum: Bull & Bear Case Intro to Ethereum vaneck.com/digital-assets Ethereum is an open-source blockchain software protocol that enables instant, permissionless 365/24/7 global value transfer. Ethereum threatens Wall Street & Web 2.0 profits — The Ethereum protocol is on pace to generate $18b i
Slide 5: Ethereum = Internet + Banking?
Ethereum: Bull & Bear Case Ethereum = Internet + Banking? vaneck.com/digital-assets What is Ethereum? The world’s computer; a global, open-source platform for decentralized applications Internet money (write code that controls digital value) Ownership stake in code-based Ethereum economy ($330
Slide 6: Ethereum = Internet + Banking Paradigm Shift
Ethereum: Bull & Bear Case Ethereum = Internet + Banking Paradigm Shift vaneck.com/digital-assets People Permissionless individual economies Who? Permissionless Each Financial apps transaction requires Permissionless Each permission Banks liquidity of higher transaction power follows code- Permissio
Slide 7: How big is Ethereum right now?
Ethereum: Bull & Bear Case How big is Ethereum right now? vaneck.com/digital-assets Ethereum’s transaction value and revenues have ballooned Total value of transactions on Ethereum network (annualized) Ethereum revenues (annualized) $4,500,000,000,000 $20,000,000,000 $18,000,000,000 $4,000,000,000,0
Slide 8: Putting banking into perspective
Ethereum: Bull & Bear Case Putting banking into perspective vaneck.com/digital-assets Banking & Payment Industry Revenues Global Banking & Payments Comprise: Global wealth & investable assets $450 $400 $350 $300 3.5% $250 Of GDP Trillions $200 $150 $100 $50 $0 Total Wealth Financial assets non finan
Slide 9: Putting internet into perspective
Ethereum: Bull & Bear Case Putting internet into perspective vaneck.com/digital-assets Top 90 Global Internet Companies FAANMG market cap as % of S&P 500 Revenues: $2.1 trillion 35% 30% 25% 20% 15% 2.2% 10% 5% Of Global GDP 0% FAANGM vs. S&P EPS revisions Market Cap: $11.5 trillion 800 700 # of Revi
Slide 10: Internet vs. Ethereum Take Rates
Ethereum: Bull & Bear Case Internet vs. Ethereum Take Rates vaneck.com/digital-assets Take rates are defined as the ratio between revenues and transaction values Take rates for Ethereum are small compared to established internet companies — Ethereum take rates have been trending lower since Q4 201
Slide 11: Internet vs. Ethereum Sales Growth
Ethereum: Bull & Bear Case Internet vs. Ethereum Sales Growth vaneck.com/digital-assets Sales growth of decentralized finance and Ethereum eclipse that of the global internet Meanwhile, Ethereum remains at a reasonable valuation compared to global internet companies 2021E sales growth Price / 2021
Slide 12: Ethereum vs. Banking
Ethereum: Bull & Bear Case Ethereum vs. Banking vaneck.com/digital-assets Operating costs are substantially lower for DeFi, leading to a higher ROA Operating cost / income ratio for banks Return on Assets, assorted banks 70% 14.00% 60% 12.00% Operation Cost to Income Ratio (%) 50% 10.00% Return on A
Slide 13: Ethereum = triple-point asset?
Ethereum: Bull & Bear Case Ethereum = triple-point asset? vaneck.com/digital-assets Store of Value ETH in Finance The triple point occurs where the solid, liquid, and gas transition curves meet. Staked ETH Gas Capital Asset Consumable Asset Source: David Hoffman Twitter, Chegg (re-printed w/ permiss
Slide 14: Ethereum = triple-point asset?
Ethereum: Bull & Bear Case Ethereum = triple-point asset? vaneck.com/digital-assets Capital Asset Consumable Asset Store of Value You can consume it Produces ongoing & transform it into Cannot be consumed store of value; General another asset, but it nor can it generate valued on net characteristics
Slide 15: Stablecoins
Stablecoins The first killer app on Ethereum
Slide 16: Stablecoins: key building blocks of the Ethereum economy
Ethereum: Bull & Bear Case Stablecoins: key building blocks of the Ethereum economy vaneck.com/digital-assets What is a stablecoin? Stablecoin refers to a range of crypto currencies that are pegged or backed by assets such as fiat, gold, or an algorithm in order to maintain a stable value They o
Slide 17: Stablecoins increase velocity of money
Ethereum: Bull & Bear Case Stablecoins increase velocity of money vaneck.com/digital-assets “Stablecoins were designed to improve capital and operational efficiency across all digital asset marketplaces and they bring about a number of benefits, including 24/7 money movement capability, payments for
Slide 18: Stablecoin history: checkered past gives way to bright future?
Ethereum: Bull & Bear Case Stablecoin history: checkered past gives way to bright future? vaneck.com/digital-assets Source: The Block Research, Coindesk, VanEck. 18
Slide 19: Stablecoin lending chain
Ethereum: Bull & Bear Case Stablecoin lending chain vaneck.com/digital-assets Defi Revenues $400 $350 Ultimate Borrower $300 $250 Millions Trader seeks $200 arbitrage Regulated Counterparties $150 $100 VanEck unsecured 6-25% yield estimates $50 (User) “HODLer” wants Over collateralized loans $- 6%+
Slide 20: What do crypto borrowers want?
Ethereum: Bull & Bear Case What do crypto borrowers want? vaneck.com/digital-assets Exploit arbitrage Growth capital Tax efficiency opportunities (Growing dAPP* ecosystem (keep money on blockchain (highly fragmented market = needs capital to fund vs. converting to fiat) different prices on different
Slide 21: Wide stablecoin array brings diversification benefits
Ethereum: Bull & Bear Case Wide stablecoin array brings diversification benefits vaneck.com/digital-assets Types of stablecoins Stablecoins Non- Fiat- Crypto- Commodity- Collateralized Collateralized Collateralized Collateralized (Algorithmic) - Gemini Dollar - USD Coin - Ampleforth - Digix Examples
Slide 22: DeFi & Web 3.0
DeFi & Web 3.0 The next killer apps on ETH
Slide 23: ETH Demand Case Study: DeFi platforms are very efficient
Ethereum: Bull & Bear Case ETH Demand Case Study: DeFi platforms are very efficient vaneck.com/digital-assets Defi volumes as % of centralized exchange volumes / DEX to CEX Spot Trade Volume % Decentralized financial companies will compete on 25% price / Operating cost / income ratio for banks DEX t
Slide 24: ETH Demand Case Study: Web 3.0 heats up
Ethereum: Bull & Bear Case ETH Demand Case Study: Web 3.0 heats up vaneck.com/digital-assets Decentralized apps set to accelerate w/ ETH 2.0 Diverse use case for smart contracts / # of unique wallets interacting with smart contracts by use case 140 3000 # of Total Decentralized Apps # of New Decentr
Slide 25: Supply-side: ETH 1.0 is too congested
Ethereum: Bull & Bear Case Supply-side: ETH 1.0 is too congested… vaneck.com/digital-assets Ethereum transaction fees now rival that of bitcoin 100% $60 90% $50 80% Average Gas Used/Gas Limit (%) 70% Average Transaction Fee $40 60% 50% $30 40% $20 30% 20% $10 10% 0% $- BTC ETH 25 Source: Coinmetrics
Slide 26: Ethereum: the supply side
Ethereum: the supply side ETH 2.0 launches in July
Slide 27: ...so ETH 2.0 introduces a new model
Ethereum: Bull & Bear Case …so ETH 2.0 introduces a new model vaneck.com/digital-assets Ethereum 2.0 greatly reduces energy consumption compared to its predecessor and various other countries Proof-of-Stake (PoS) Improvements Better energy efficiency (95% lower 140 than ETH 1.0; 99% lower than Bit
Slide 28: ETH 2.0: unanswered questions regarding future supply growth
Ethereum: Bull & Bear Case ETH 2.0: unanswered questions regarding future supply growth vaneck.com/digital-assets Ethereum’s new pricing mechanism brings a deflationary component New Pricing Mechanism on EIP - 1559 25% Gas fees will be “burned” for the benefit of all token-holders (similar to shar
Slide 29: Ethereum: the competitive landscape
Ethereum: Bull & Bear Case Ethereum: the competitive landscape vaneck.com/digital-assets Source; Vaneck. 29
Slide 30: Digital assets content
Ethereum: Bull & Bear Case Digital assets content vaneck.com/digital-assets VanEck is committed to communicating with clients clearly about the opportunities and risks associated with bitcoin and other digital assets Blog Series: June 17th, 2021: Tracking Sovereign Adoption of Bitcoin: A Potential T
Slide 31: Questions?
Varitek’ Questions?
Slide 32: Important Disclosures
Important Disclosures vaneck.com/digital-assets The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time and from time to time. Non-VanEck proprietary information contained herein has been obtained from sources bel
Slide 33: Important Disclosures
Important Disclosures vaneck.com/digital-assets Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies