Grayscale Names 3 Cryptos That Could Gain From Surging US Debt

Grayscale’s research team links the United States’ rising public debt to potential upside for three digital assets: bitcoin (BTC), ethereum (ETH) and zcash (ZEC). The analysis, authored by head of research Zach Pandl, argues that unchecked debt growth erodes confidence in fiat money and may drive investors toward alternative stores of value.

Why Bitcoin, Ethereum and Zcash?

Bitcoin is highlighted for its fixed supply of 21 million coins and lack of a sovereign issuer, presenting a clear scarcity narrative. Ethereum is noted for its decentralized settlement network, while Zcash combines a Bitcoin‑like structure with optional privacy features.

U.S. Debt Context

On August 18, the Daily Treasury Statement recorded total public debt exceeding $40 trillion for the first time. Treasury officials announced an expansion of long‑term bond buybacks on August 19, doubling the maximum per‑operation size from $2 billion to $4 billion to support liquidity in the 10‑ to 30‑year sectors.

Buybacks retire older securities but do not reduce the overall debt burden. Structural deficits remain, with the Congressional Budget Office projecting a $1.9 trillion deficit for fiscal 2026, rising to $3.1 trillion by 2036. Debt held by the public is expected to climb from 101 % of GDP in 2026 to 120 % by 2036.

Implications for Digital Assets

Grayscale views the debt trajectory as reinforcing a “debasement trade” that could benefit BTC, ETH and ZEC. The firm cites three forces driving bitcoin adoption: persistent fiscal deficits, broader blockchain use cases, and macro‑economic uncertainty.

• Bitcoin’s scarcity argument remains its strongest differentiator.
• Ethereum’s utility as a settlement layer adds functional demand.
• Zcash offers privacy options that may appeal to investors seeking anonymity.