The chief investment officer at a digital asset investment firm is raising new questions over the future of crypto for one key reason.

Arca CIO Jeff Dorman says he believes Bitcoin (BTC) and many other digital assets are unlikely to see values increase from the explosion in the tokenization of assets.

Dorman warns there may only be a few beneficiaries from the latest big trend in blockchain use cases such as the New York Stock Exchange (NYSE) plan to launch a tokenized securities platform for 24/7 trading and stablecoin-based funding.

Says Dorman,

“Crypto really in an existential crisis now. Everything we thought would happen on blockchain is now happening, but little if any of the value accrues to any stocks or tokens in our ecosystem. Fat protocol thesis is long dead. BTC has nothing to do with ANY of the actual blockchain growth engines: no exposure to growth of stablecoins, decentralized finance (DeFi) or real-world asset (RWA) tokenization.

Continue to think a handful of DeFi tokens, token launchpad companies, and GLXY [Galaxy Digital] stock are the only clear winners from this trend – when all assets are on on-chain, DeFi goes from niche experiment to the full financial plumbing engine.”

However, macro analyst and institutional crypto veteran Dan Tapiero disagrees with Dorman.

“Remarkable how wrong this is.”

In response to Tapiero’s criticism, Dorman double downs on his view.

“Where do you see value accruing from all of the newfound use cases of blockchain? We’re seeing lots of tokenization and heavy adoption of stables and the value is accruing to intermediaries like BlackRock, Securitize and Tether.”

Bitcoin is trading for $88,992 at time of writing, down 1.9% in the last 24 hours.