VanEck: AI Infrastructure is Not a Bubble, Institutions Disappointed with Layer 1

Matthew Sigel, head of digital asset research at VanEck, stated that it is difficult to view the AI infrastructure rally as a bubble. He analyzed that the cooling of the cryptocurrency market stems from institutional investors' disappointment with major Layer 1 (L1) assets. Sigel explained that AI infrastructure spending is in the construction phase based on private long-term contracts and actual demand, and he did not classify current AI infrastructure investments as a 'bubble.' VanEck noted that AI investment opportunities are shifting from software applications to physical infrastructure. Sigel mentioned that the market has shifted to negatively evaluate stocks with high capital expenditures. He reported that institutional investors are focusing more on corporate chains built by companies like Circle, Stripe, and Robinhood rather than public Layer 1s. The holdings list of VanEck's On-Chain Economy ETF (NODE) includes the VanEck Bitcoin ETF and several companies, indicating that VanEck's investment targets are not limited to individual Layer 1 tokens. The Robinhood chain recently ranked first among major Layer 2s in Layer 1 rent paid to the Ethereum mainnet. On the policy front, the Clarity Act (H.R.3633) is pending in the Senate, and the U.S. Senate is in recess from August 10 to September 11.