The rise of private markets is challenging traditional public market investing. Historically, investments in US equities through index funds have offered reliable returns, averaging 8.5% annually since 1928. However, a study revealed that a mere 4% of stocks generated all net returns from 1926 to 2019, making it difficult for average investors to benefit from market gains without picking the right stocks. Many promising companies such as OpenAI and SpaceX remain private, withholding potential gains from public investors. In response, platforms like Republic are beginning to offer tokenized shares of private companies, allowing retail investors to gain exposure to these traditionally inaccessible markets. While this innovation may seem appealing, it brings risks, as tokenized shares do not guarantee equity ownership and present counterparty risks. With over $300 million in reservations already, the move to incorporate private markets signals a growing concern for public investors keen to diversify their portfolios in a changing financial landscape.

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