Reporting live from the Bitcoin (BTC-USD) Investor Day event in New York City, Yahoo Finance's Brad Smith joins Hunter Horsley, co-founder and CEO of Bitwise Asset Management, to discuss traditional He talked about the activities of Bitcoin ETFs as investors become more encouraged to invest in Bitcoin ETFs. Bitwise operates its own Spot His Bitcoin ETF (BITB) and several cryptocurrency industry ETFs (BITC, BITQ, BITW, BTOP).
“Bitwise Bitcoin ETF grew to over $2 billion in assets in two months. It was one of the fastest 25 ETFs to reach $1 billion.” [dollars] “In the ETF's 30-year history, this represents a whole new class of investors who feel like they've heard about Bitcoin for a long time, but will finally be able to participate in it in 2024. Horsley explains. they have access to it. ”
Horsley also commented on Bitcoin price trends and the possibility of the Securities and Exchange Commission (SEC) approving a Spot Ethereum (ETH-USD) ETF.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor's note: This article was written by luke carberry morgan.
video transcript
– Welcome to Yahoo Finance. I would like to add that we have been live since Bitcoin Investor Day, the first Bitcoin Investor Day. And now we're joined by Hunter Horsley, CEO and co-founder of Bitwise Asset Management. I'm glad to be with you.
– It's great to be with you, yeah.
– absolutely. That is, a lively event will be held here today. Expressed in bits. We know Scaramucci, Novogratz and Galaxy were here. Why do you think this meeting of ideas is so important at this time for cryptocurrencies?
– Well, I think so – so Bitwise has been around for over six years and now serves investors all over the country. While many investors are familiar with cryptocurrencies such as Bitcoin, the launch of Bitcoin ETFs was a turning point for the sector. And I think this is a time where a lot of traditional investors finally feel like they can get involved. And events like this are helping make that happen.
– If you think about the recent ETF activity, of course it's a milestone for the industry as a whole. Recently, there has been a gradual outflow. How does your company handle such daily inflows and outflows and, ultimately, what is the selling point for a lot of newcomers who are still trying to figure out if it's a good fit for them? Are you thinking? What is their portfolio?
– Yeah. To be honest, it was amazing to see these Bitcoin ETFs come to market. The Bitcoin ETF was introduced in two months, and its assets have grown to over $2 billion. It is among the 25 fastest ETFs to reach $1 billion in the ETF's 30-year history.
And what it represents is a whole new class of investors who have been hearing about Bitcoin for a long time but feel like they can finally get on board in 2024. they have access to it.
I mostly think of it as similar to a Bitcoin IPO. You may have heard of AI. You've probably heard of OpenAI. But for most people, even though they've heard about it, they can't necessarily invest in what's going on there until OpenAI is published someday. And for many investors, Bitcoin was like that.
In particular, many of our clients who are asset managers and institutional investors are interested. But now you can access it through Bitcoin ETFs like Bitwise Bitcoin ETF. So we saw a huge amount of usage within 9-10 weeks of launch.
– If you look at the stock market, investor sentiment can get a little weary because it's typically tracking declines over perhaps several days or multiple sessions. It may lead you to ask the question, “What is the right deal?” Do I also need to leave my position?
What are the thoughts that we're hearing from some of the people out there right now when we see multi-day slippage in cryptocurrencies?
– Yeah. Yeah. That's a great question. I would say that in our customer base right now, people are pretty optimistic about the prospects for Bitcoin. We have never seen a client actually change their mind or change their position.
Of course, if you zoom out, Bitcoin is up over 40% year-to-date, doing exactly what people expect from this asset class. Last year was a great year. And many of our clients have a long-term outlook. They invest because they have a view of what will happen over a year or multiple years.
– The reason why many of our clients work with Bitwise as specialists in this area is because this area moves so fast and there are weeks when the market has volatility or something is happening that we don't understand. I think. I love being in a space where I have a partner who understands what's going on with me.
However, I doubt there are any truly significant developments behind this week's price action. I think this is typical Bitcoin volatility. And for some investors, that creates an opportunity. However, I don't see any real change in Bitcoin's fundamental opportunity.
– The Bitwise Bitcoin ETF is already on the market. Do you think Ethereum will be next?
– Yeah. So, we've been working at Bitwise for more than six years. We have over 15 investment solutions. We launched crypto assets, an ETF that holds crypto assets. This was the first ETF allowed by the SEC to include a crypto in its name.
We have the largest publicly traded crypto index fund and our role as specialists in this field is to strive to bring opportunities to investors when it becomes possible and when the opportunity is ripe. I made this statement to show that I think that is the case.
So we are also working on an Ethereum ETF.
– How soon can we see it?
– So the SEC has a May 23 deadline to make a decision, which isn't that far away. Right now, if you ask most issuers, they'll tell you it's 50-50 what will happen. However, our approach has always been to be a constructive partner with the SEC in evaluating risks and considerations. So even if it doesn't happen in May, we'll continue to work on it.
– Finally, while you're all here. This is an unusual setup as we enter a Bitcoin halving, where we have an all-time high for Bitcoin and a market cap of cryptocurrencies that is trying to get back there, but Bitcoin has already reached that level. . Perhaps the price movements we might see need to be different, but what does this set?
– Yes, historically, halving has been the focus of the ex-ante because it is a way to reduce new supply, which affects prices in a supply and demand relationship.
If you look at previous halvings, there is usually a bull market regardless of what happened before the halving, and a long bull market after the halving. Investors are trying to factor in or estimate the impact of the halving in advance. But once that happens, it's like starting a stock buyback program.
Investors can get input on it in advance, but once the program starts, companies are buying back their own shares every day, which affects the market. And similarly, the halving will definitely have an impact and I think it will be very constructive for Bitcoin for Bitcoin investors.
– Hunter Horsley, Co-Founder and CEO of Bitwise Asset Management, thank you very much for taking the time.
– absolutely. you're welcome.
