Join us for an enlightening discussion on “Liquid Lunch,” powered by CryptoQuant, the forefront leader in on-chain data analytics. In this exclusive webinar, we dive deep into the evolving landscape of cryptocurrency, ETFs, and the anticipation surrounding the 2024 Bitcoin halving.
Featuring Special Guest: Leah Wald, CEO of Valkyrie.
Leah Wald, from Valkyrie, brings her expertise to the table, sharing invaluable insights on Bitcoin, ETFs, and the critical role of on-chain data analytics in today’s crypto market. Discover Leah’s unique perspective on the future of Bitcoin mining, the significance of the upcoming halving events, and how Valkyrie is navigating the crypto ecosystem.
Key Highlights:
– Introduction to CryptoQuant’s pivotal role in crypto adoption and analytics.
– In-depth analysis of miner activity, Bitcoin selling trends, and the impact on the market.
– Exploration of Bitcoin holding patterns among leading companies and their strategic implications.
– Discussion on transaction fees, miner revenue, and the outlook for Bitcoin post-ETF launch.
– Future predictions for Bitcoin mining and the strategic planning for 2024 and 2028 halvings.
– Insights into Valkyrie’s approach towards ETFs and the importance of diversifying custodians.
– The significance of educational initiatives in bridging the gap between traditional finance and crypto.
Why You Should Watch:
Whether you’re a seasoned trader, a crypto enthusiast, or new to the blockchain world, this webinar offers a comprehensive overview of the current state and future prospects of cryptocurrency. Leah Wald and the CryptoQuant team provide a rare glimpse into the analytical and strategic considerations that are shaping the future of Bitcoin and the wider crypto market.
Don’t miss out on this opportunity to gain actionable insights and deepen your understanding of the crypto space. Subscribe to our channel for more updates on cryptocurrency trends, analysis, and expert discussions.
Timestamps:
00:00 – Introduction
01:24 – On-Chain Data Analytics Overview
08:40 – Miner Activity and Selling Trends
11:57 – Leah Wald’s Background
17:46 – ETF Launch & Holdings
32:03 – Barriers to Entry and Bitcoin Narrative
37:36 – Ethereum ETFs
38:59 – Analysing Fund Assets
39:52 – CryptoQuant’s Data Insights
42:20 – Inscriptions
46:47 – Valkyrie Acquisition
47:25 – Closing Remarks and Future Collaborations
For more information and to access in-depth crypto analytics, visit https://cryptoquant.com/. To learn more about Valkyrie’s innovative approach to cryptocurrency investment, check out Valkyrie’s website.
Connect with Us:
CryptoQuant Twitter: @cryptoquant_com
Valkyrie Twitter: @ValkyrieFunds
#bitcoin #ETFs #CryptoQuant #Valkyrie #OnChainAnalytics #CryptoMining #BitcoinHalving #Cryptocurrency
Welcome everybody back to Liquid Lunch powered by crypto Quant the leader in onchain data analytics and a platform to help uh the adoption of crypto worldwide and today I am super excited about our guest Leah Wald from Valkyrie um she’s going to be with us today we’re going to be talking on chain
Data analytics Leah welcome to the program thank you for joining us this morning got a cool shirt on you maybe want to show the guests real quick well it’s uh it’s awesome being on a beach with you guys this morning I I didn’t think that you know I’d be at the ocean
At 9:00 am in the morning so this is a a great morning thank you so much for having me on sorry it is uh kind of an old school menol space sh I thought it was appropriate for today love it I love it the OG Bitcoin Vibe and then of
Course we also have the CEO of crypto Quant key young welcome key how are you sir very good how are you good morning doing good good and then of course we have Julio our our major our main Quant um research guy who’s going to be uh going through some onchain data
Analytics this morning so we’ll start with that and then we’ll get into some um some details about Valkyrie about Leah’s crypto journey and and see all that exciting stuff um after that so Julio you want to start us off and maybe get into the report yeah sure uh thank
You um this is a report that we um wrote this week um so and here we we were discussing um the minor activity and and how how miners are doing Bitcoin Miners and so we start with looking at what they’re doing in terms of selling and so we’re tracking now these um minor
Selling to OTC uh desks and so you can see uh that you know they they mainly did some selling on November December that’s when we saw like that Spike but so far this year we we we haven’t really seen any meaningful selling for for miners of course there they’re always
Selling right because they need to pay for operating expenses but when there’s this type of spikes I think that they um try to to manage their treasury right and maybe get a little bit of a little bit of extra extra cash right and so right now so far this year even even
With prices uh declining after um the ETF launch we really hadn’t seen any any you know big spikes on on on my ERS selling uh through OTC desk so this tracks mostly um you know those uh big companies right uh big companies big miners that sell through OTC de and so
Even looking at the the companies um activities and holdings on chain that we we’re tracking uh you can see that for example this is just an example marathon and Riot uh their Holdings over over time uh increasing actually right so this uh companies uh really holding holding more and more Bitcoin so we’re
We’re not really seeing some selling from from from these companies um and that’s you know I wanted to discuss this because uh you know it’s it’s remarkable right that some of these miners are aren’t selling uh even after we’ve seen their profits um decrease so far this
Year uh I would say because mostly and we’re going to see that uh hit uh because fees fees were really high on November December right and then this year they have come come down significantly and so this is a a metric that we use to track that like uh the
Revenue of miners how is it growing and also about comparing that to the mining difficulty which is like like a proxy for Mining cost and so we’re comparing the growth of these two two um metrics and and and building this new new metric that track that and you can
See here like right now after after after the fees decrease um we see that there are miners are been being extremely underpaid right now but that’s why I wanted to point out that this remarkable that we’re not seeing actually a lot of selling from Miners and yeah this was because um
Transactions have also decreased so far this year we have you know a lot of transaction activity uh on November December due to inscriptions to vc20 tokens mean and now they have come down uh significantly so transactions are down and you can see that um why do we
Do we say that it’s because of lower inscription on vc20 token activity just look at these um transactions by type of address and so the inscriptions and the B20 tokens will use stab rout which is this this um uh purple line and so that that also has come down right so yeah we
We we are seeing that like a less activity from from that from that uh point and uh the impact on fees is really evident here in this in this one um so you can see daily fees is the line the purple line and then the um
Addresses that use stop rout are the the bars and you can see also you know this spiking fees when inscription and bc20 token activity also spiked now it has come down significantly like uh fees have come down from this high uh on daily fees around almost 600 Bitcoin in
One day more than or 90% down for to right now uh maybe around 50 53 uh daily daily total fees so uh really meaningful declining fees and and for for miners of course it impacts Miners and that’s what we we’re seeing here um and just the end
Just a couple of charts about price um we were saying this I mean this we published this yesterday right and so how how the the sell pressure for for prices the downward pressure for prices was um declining easing as as um the profit margins for Traders basically are
Now around Euro so we had a a really high unrealized profits for Traders um uh at the at the end of the last year and at the beginning of this year and then as prices corrected those those profit margins um went to zero and this
Is when we say that there’s um less less uh downward pressure now for for prices because there’s um less uh profits to to to be realized right to to be made by selling so and then we also we saw this this this morning like uh Bitcoin prices
Uh increasing right and and we we can see this uh as also how um demand for Bitcoin in the US with the with the coinbase premium it also was approaching zero right so there’s like um just a better demand in the US to to for
Bitcoin in the in the in the last few weeks right and the last few days actually we this is approaching zero so so yeah basically what we published this week just talking about miners about how they’re doing um in terms of fees and transaction activity on the network and
Then just a little bit of of um you know how how prices um downward pressure was it has been easy actually yeah amazing um and so if you guys would like access to This research go ahead and sign up for an account at crypto.com if you’re an institution please reach
Out to us uh we definitely can help you set up trials to get access to our API to pull all this data and use it in your own models and so um awesome report there’s a lot of exciting things happening with the miners this week we’ve got cleanspark acquiring some new
Uh facilities that’s going to increase their revenue by about 15% I think we’ve got the hash rate and the difficulty going absolutely insane I think there’s another adjustment coming up for like a 133% adjustment up and then we’ve got you know just uh we’ve got ocean mining right we’ve got the new transparent
Ocean mining that um they found another block I think that’s their 10th one they finally found and so lots of exciting things happening um happening there Leah did you want to comment on any of that stuff yeah I I I mean Julio that was fantastic I think just one addition to
You know mining that we’re looking at is also core scientific you know coming back onto stage and looking at what you know they’ve just announced for production operations updates um I think it was a few days ago and just generally I think everybody here you know how do
We think that these miners are preparing for the having um not just 20124 but I actually want to know how miners are thinking about 2024 2028 you know how are you preparing now since there’s such a you know um ramp up period for for these minors especially from the
Hardware perspective so um yeah that’s that’s also what we’re looking at we’re excited you know to be able to follow core again too and then key any any comments on the mining activity or any of I I think miners are um they’re not heavily selling right now especially for
Us miners if you see their um onchain wallets and their reserves so um HH rate is increasing and they’re holding um they’re waiting for selling Bitcoin after the hobby not like not right now it’s not the right price for them yeah nice so yeah and so after the having
Right instead of 900 Bitcoin per day it’ll be 450 Bitcoin per day so the selling pressure will definitely come down I believe I think the uh the cost to produce one Bitcoin right now energy wise is around I think you said 33k last time we talked so I think it’s still
Around that that realm and so they’re still in profit but they’re sitting waiting for the having maybe we’ll get an all-time high before that uh we’ll see we only have a couple months here to go but uh anyways let’s get into the interview today Leah we are super
Excited to have you it’s an honor to have you as a guest here today um and what’s great about you is you’re not like a typical Finance bro Finance gal right Wall Street gal you are actually um like an OG like crypto bitcoiner like this is so this is cool because you come
From a different realm no like kudos to you like we we appreciate that and we want to support people that have been in it a while and really truly understand the technology and what it can do for us as humans and and and for for a better
World and so maybe give us a just a quick 40,000 foot view of like your intro into crypto how you found it and what like turned you maybe into like maybe a maxi or something definitely and that that was very sweet of you thank you so much and and actually uh before I
Do that just stepping back that um we’ve had a great relationship with key sorry putting you on the spot in crypto Quant um since both companies launched we kind of launched at the same time we came out with a big report together when we were both you know wearing too many hats as
Founders and trying to figure it all out together and and crypto Quan has always been a a great partner um and they were the first you know data service that we used and um so great long relationship with crypto Quant since since key and I were crazed Founders back in the day um
So Garrett thank you so much um you know the question’s always tough of When you entered Bitcoin right you know there’s the question of when did you enter as a fulltime career when did you know you really dive in and you know try to make that happen and when did you learn about
Bitcoin and and start realizing the importance of the pillars um around what Bitcoin means for Society for the financial future future for financial sovereignty as well as this absolutely incredible Democratic asset you know potentially I actually think it’s the most democratic asset that’s ever existed in history anyone can buy
There’s a Marketplace that’s you know very true and that we can check with onchain metrics um I originally learned about uh Bitcoin when I was working um in the subsaharan Africa region of the world Bank there was a project at the time called empa if people are familiar
Which was the first SMS based micro Finance system and it worked great it was piloted in Kenya it was bought by Vodafone it was seamless at that time it was 2009 so obviously heard about Bitcoin a little later but when I learned about Bitcoin sure makes sense I saw this work
I saw you know how this technology is seamless and then I learned you know a bit more about the principles of Bitcoin especially unconfiscatable ility um and for me it made total sense um so that was kind of the use case that My Lens was always on it was actually where all
My passion was as well uh did a lot of work in International Development so um still following all those projects that are trying to work in the developing World um going full-time was around 2016 17 with Lucid investment strategies which was uh a Bitcoin ra that was specialized in uh actually investing in
Gbtc as well as teaching about investing in Bitcoin spot uh for our discretionary accounts um and we you know had a YouTube channel as you do back then uh and taught a lot of ta my former partner came up with a couple theories technical indicators hyperwave uh San system
Consensio Etc so very much started in the TA Maxi world that’s uh how I grew up in this industry if you will um charting like John Nash and you know being a crazed person and back then as we all remember it was a different game on how you conduct did technical
Analysis there was just so uh many different Dynamics in that time period than there are today in many ways it was easier to use ta uh because you didn’t have fundamental analysis uh that you could really work off of um now you have such a pleora of data especially with companies like crypto
Quant Etc that that it’s just changed which has been really cool to watch after Lucid I met Stephen mcer who’s my co-founder at Valkyrie and we set up Valkyrie in August of 2020 and uh it’s been Off to the Races ever since awesome love that story and love your path and
Uh we appreciate what you’re doing for the for the ecosystem in the space and so as we lean into that like why Valkyrie right I think a lot of us know about the World War II plot of what Valkyrie was based upon and so is there
Any relation to that like it’s a cool name it was a cool movie what what where did the name come from and it’s a cool name right like you know so tell us kind of the the the idea behind that well so it’s based on the Norse goddesses and
Warriors but every one in a thousand people like you do equate it to the World War II plot to assassinate Hitler I’m happy that it was on the the good side of History it was an unsuccessful plot but you’re one of like one in a thousand that go that direction rather
Than you know the Marvel character of the you know the female Warrior totally bogarted that one yeah I’ll take it it was the right side of History just you know unsuccessful Mission but sure um the thought process was was more on the female warriors uh Stephen and I have Norwegian yeah
Norwegian blood thrown you know flowing through us and uh love mythology I absolutely love mythology it’s almost to a pathetic realm my dog’s name is Thor and my daughter’s name is Athena so there you go um but okay uh Valkyries are very interesting um um figures um they’re really Arbiters of
Truth and Justice on the battlefield so they were um supposedly well it’s mythology but they would take the righteous Warriors to valala which is the most amazing place ever because it was a long haul where you eat and drink and other things um but they were the
Ones that decided who was allowed to come up um who was just uh who deserved that so we like um that theme of providing Justice and looking into the ecosystem and you know creating creating products that um were good rather than just junk in anything
Um so that’s kind of where it came from awesome and that’s so great because you’re putting the metaphysical inside of your actual product which gives it power I believe too in the spiritual sense and so um you are a true like warrior princess in this in this realm
And so um no it’s really cool to see and understand that perspective because I think it gives a lot more context to what you’re doing what your mission is what your calling is um and I love that I absolutely love that story because it really um I think resonates with not
Only us but a lot of bitcoiners as well and so I have a small stash that I’m taking with me when I pass to you know pay for my ticket to Valhalla so yeah I have a certain stash that is going to the Grave with me so I can punch my
Ticket to Valhalla when I’m when I’m when I’m ready to go right yeah I mean just for me uh a question will be now after the launch of the ETFs I mean how how how how your impression what been your impression of how the things are
Going with the ETF launches and you know how much capital is coming to this new products and what’s your your perspective on that extremely successful I think that there was a very naive understanding that the launch equates with mooning which is very silly and there’s a couple reasons why
Um the way that the ETFs were approved and then launched was in such quick succession that many of the platforms where allocators buy from haven’t even conducted due diligence yet so that comes next right so actually in the United States those large money allocators who want to buy actually
Can’t yet right so that’s all going through the process you can buy you know and and it makes headlines whether it’s Morgan Stanley Etc you can buy through a self-directed but but until that you know those dbqs and those platforms get comfortable the larger money actually is
Waiting a little bit on the sideline so I think that that’s a huge opportunity and something that everybody needs to understand and with that said the inflows have have been remarkable um the fact that black Rock’s in the game fideli has been in the game but now with
The product Etc there’s no small amount of capital with billions of dollars that have already gone into these projects so I mean it it extraordinarily successful again I don’t think the metric of success needs to be that it h $150,000 on launch that that’s very silly and
Artificial to me uh also as we’re all following gbtc hasn’t shaken out yet so there’s a lot of disagreement if you will in the price activity in the market I think right now until we find some sort of stability not just with the outflows but also who’s going to
Continue to hold gbtc it’s obviously still held in a lot of Estates bankruptcy Estates so there also is just some artificial holding until a strategy can you know come about from some of these larger holders as well as International holders um so I think that until that stabilizes we’re not going to
Find the pure price discovery that we need to have that healthy market and Healthy Growth and then compound that with obviously the having coming up and you know how could you not be bullish but I think that they’ve been very successful what’s successful um to note is that there’s been no operational
Issues knock on wood but there hasn’t these are new products uh using us rails using us companies that are you know totally uh new Plumbing for an ETF in the United States right so I don’t think it can be you know understated how important it is that these you know ETFs
Across the board all of ours have been performing without a hitch they’ve been trading really well the spreads have been really tight and again the the the movements to in from the APS and the custodians and everything has has actually been going really well so I
Would Mark that as a huge success as well that from you know day one until February 8th and going on you know us issuers are moving forward with Innovations and changes and you know uh pivots that only make these stronger as an example Valkyrie just added a second
Custodian bito so right now we have two custodians for our product um and I think that we’ll see other issuers make advances that will make their products even stronger well and uh and that’s just a great thing so very successful I think yeah just uh you know to add on
That the Holdings of those um ETFs are now approaching for example mro strategy Holdings you know so it’s you know compare that you know mro strategy has been um buying uh since I think 2020 right it’s a it’s the company but in just a some days there’s been a that
Amount of demand from this um new ETFs right so it’s just to put it in perspective in terms of how much money has come to to to bitcoin yeah yeah it’s huge it’s huge I have questions for you guys too when you’re done out there go for
It um well this is off the UTF so just you know shut me up at any time but uh if I could ask a couple questions so Julio you um showed that really interesting chart of the coinbase premium uh crypto Quan obviously and key being based in Korea uh what’s most
Notable right now is having that kimchi premium back um what are your guys’s thoughts generally on seeing those two premiums what’s going to happen in Korea are we going to see the ARB that we used to see are those Dynamics concerning for you at all uh or just interesting while
You’re trying to figure out you know how they shake out so um I can answer that question for Korean premium it’s basically from retail investors Korean prohibits you know joining um crypto for institutional institutional investors uh institutional investors basically cannot open a corporate account on cring exchanges so and we have very strong
Capital control um that’s why there’s a pretty big discre discrepancies um when when it comes to price um and I think um still quean markets are altcoin driven uh if you see the volume dist distribution it’s it’s mainly altcoins not Bitcoin and ethereum um but still we believe there’s going to be huge
Opportunities um for ETF issuers um Ian fund managers and as big biggest s Management firms they’re trying to buy Bitcoin ETFs and then the government like prohibit prohibited the to buy it a month ago uh I think it’s going to be you know uh they’re going to
Be the government will allow to buy uh ETFs sooner or later I think I have a question actually some says you know spot Bitcoin ETF is not good for Bitcoin for the future you know not your not your coins whatever many narratives out there um so why uh can you explain why
Spot Bitcoin ETFs are good for Bitcoin ethereum in the long term yeah I uh semi disagree I personally hold Bitcoin I’m not going to tell anyone on what Hardware wallets I will throw out some that I recommend but I think that whomever wants to hold their own keys
Should hold their own keys I think that we’re looking at two very different things and I I you know think that a lot of participants in the market uh are making that distinction that you know the ETFs you’re you know you’re you’re holding it through your brokerage you
Know Etc it’s not not your keys is not your coin that is very different than when it first came out um which was Trace mayor back in I want to say 2018 when the exchanges were blowing up right and quadrio was happening and all these different things so keeping your
Key you know your coins on those exchanges and there was a lot of rehypothecation was very different I think that the ETFs were again it’s being audited every single day um and you’re using you know verified custodians coinbase is a very you know reputable company in bito and you’re
Using cold storage for people that want the ETFs I think those are very interesting end of the day if you want to custody your own Bitcoin you custody your own Bitcoin that’s wonderful I do it myself as well um so I think that it’s only a net positive for Bitcoin
Again because I I the purpose of these ETFs is a rapper for people who can’t buy spot right so if you’re providing this opportunity for allocators to actually gain access to bitcoin which does have underlying spots so positive positive for the ecosystem that’s wonderful they could not use a ledger at
A lot of these institutions and Banks to hold a billion worth of bitcoin right that’s just never going to happen and that’s why the ETFs are beautiful so I would say net positive because both participants or all participants can do what they want and that’s the Bitcoin
Way right is you do what you want to do um but I I do also I will say want to see some of these Hardware providers get a little more sophisticated as well and I think that there’s still a lot of issues I will shout out I think that
Cold card is a great one I think coin does great job I think blockstream does a great job but I do think some of the more mainstream ones actually have issues uh and that’s more dangerous than the ETFs if new retail participants come in and have a hardware malfunction which
I have had on Ledger before and it had to be forensically found and moved and we may all have those experiences back in the day that can’t happen right so I actually think on the native Solutions there’s a lot of advances that need to be made or a lot of retail investors
Need to be more informed on which solutions to use rather than just the most marketable brands um the ETFs I think again I I you know I’m diverging a little bit key on your topic but I I’m very passionate about this because there different buyers there’s different
Opportunities and um if we want to teach everybody to hodal with their own Keys we actually all of us need to do a better job of education on that too more Technical and as a followup to that question um you know as bitcoiners right we like to have verification of that and
So you know bitwise has agreed to kind of showcase their public address and you know people worry about rehypothecation uh does Valkyrie have any plans to like show proof of reserves and what is your thoughts on rehypothecation if people aren’t allowed to maybe verify like the Bitcoin um you
Know that some of these ETF providers are saying they have yeah so um it’s more nuanced and no we do not plan as of right now due to the current security measures to publish the address let’s talk about it in a few months as of right now we don’t believe that that’s
Actually secure and if a lot of people saw and I I love fitwise folks you know shout out Hunter and Matt um but they did receive tips that can be a little difficult when it comes to fund accounting makes things tiny bit Messier so right now things are clean what uh
Participants and audience should know is again this is being verified by Auditors every single day right uh we’re working with US Bank a lot of the other issuers are working with Bank of New York melon every day the fund admin needs to verify in Cold Storage that everything is
Actually there so uh there should be um some trust in the system that it’s being verified by multiple counter parties every single day there is no rehypothecation allowed I would not see this as block five Voyager even many of the crypto exchanges that blew up especially in Korea you’re in a country
Where Lots blew up um where you really didn’t have any visibility and no one was able to have visibility these are you know the most established traditional Finance firms maybe in the planet including dtcc and other Regulators that are actually verifying every single day so as of now we don’t
Think that’s a secure method what we are focused on is diversification of custodians and ensuring that our wallets are secure as bitcoiners we know that actually having more than one wallet is important all of us know that right and even if you’re using a cold custody it’s common practice that you’d have multiple
Wallets to ensure that if there was an issue you know you you you have that um that uh risk management strategy so we don’t believe that’s a good strategy um you know all of us can do different things but Valkyrie we don’t believe that’s safe awesome I think it’s great
That you guys are um diversifying your custodians which is also helpful so I think that’s kudos to you guys understanding the space that you want to diversify the custodians and make sure that you guys are are tolerating that risk and managing it well thank you appreciate it the attack Vector can come
From The Exchange rather than the issuer I think all of us come in the space from an obsc perspective understands that there are a lot of attack vectors and a lot of that has always come from simple things like spoofing um really is a powerful uh attack method much more than
You know 51% attacks uh those used to be the case on chains but um for something like custody the simple things that you don’t think of can actually you know be most dangerous so it’s not just trusting you know in the issuer it’s trusting in the obsc of the exchanges and that’s
Also why having one wallet on one custodian you know we think is a little uh concerning but obviously we have a lot of confidence in in coin bases and we’ve done extensive due diligence as had you know the rest of the ises um but we’ve done a annoyed
Them a lot on technical deep Dives to to feel confident what is the biggest totle for uh spot ETF markets and how valky is so uh is solving the problem some says I’ve talk with some issuers ETF issuers they said narrative is the biggest problem you know um if you want to
Persuade fund managers um we need narratives like the biggest narratives what’s the narrative for Bitcoin right now um and fund managers they’re just looking at the correlation stuff um back in the day not not right now I like was last year I think Um for for now I I’m not sure like uh what What’s the biggest priority for you and what’s the interest for fund managers your clients yeah so I get it I think your question is um previously what were the barriers to entry to buy from these larger allocators for the bco
Need yeah I think that that’s that’s a great question um I think that notoriously as we all know it was around oh bitcoin’s too volatile um I don’t understand is it really an inflation hedge that’s what you’re telling me but I’m not seeing that store value versus means and payment I’m hearing both
Narrative to your point about narratives um you know though and then I don’t know where to buy it right um there was always the Bitcoin Futures ETFs and that made huge strides you know BTO launched with a billion dollars AUM uh we had a very nice opening as well um but then
You know we entered a bare Market we got punched with black eyes from industry participants and it became you know a an afterthought of should you know fund managers actually be allocating to this you know small n asset that potentially has more dangers than advantages I think it’s important for
The audience to understand that an Raa a registered investment advisor let’s take that segment which is an important segment in the United States is assessing all options they you know whether they are being pushed by their financial advisor clients financial advisers to raas you know or the CIO to
Buy on behalf of that client they are assessing every opportunity they must um so whether it’s real estate or fixed income what’s happening with treasuries what’s happening with the S&P what is this bio maybe they’re experts in Farmer micro caps right so education I think is still the most important that’s why I’m
So bullish that black rock has boots on the ground and so do these other Invesco notoriously has always had a very impressive distribution Army as well and only by getting boots on the ground as well as explaining you know this asset helping oras and allocators get more comfortable
That’s when we’re really going to be seeing you know very impressive and interesting healthy flows I think that large allocators may be there uh due to previous conversations and now they have this vehicle and you are seeing that with these you know where the AUM stands today across all the across all the
Products but if we’re talking about meaningful consistent chunks and that’s both buying and selling creations and redemptions you do want to see both you know sides of the volume I think it’s it’s only through educating and therefore the narrative I think that’s important is the number go
Up narrative um which is proving to be true um so I think that that is still going to be the most important narrative for allocators which it is because they’re fiduciaries so as a fiduciary they cannot ignore an asset that has this amount of price appreciation and
Now shows that it’s in a wrapper that is secure and that they’re able to buy so as much as I’d love that it was around Financial sovereignty around the pillars of uh Financial truth and all these different things if I’m being obnoxious and plastic to what I know most of these
Fund U managers care about it’s the fact that um we’ve seen such exponential growth and therefore with this rapper they know how to trade it so I do think the metric of success for that narrative will be this year um if we don’t have a very successful having and it doesn’t go
The way that we’ve said there will be adjustments made and they should again as a fiduciary they cannot just buy Bitcoin if it’s in a bare Market they cannot just hold Bitcoin if it’s in a bare Market they do need to rebalance accordingly um it is also important to
Note that um risk parameters are also very tight and set by a lot of fund manager managers and asset managers so sometimes you can blow through a risk parameter with such price appreciation that managers will actually need to downsize even though that asset is doing great it’s doing too well so there are
Some interesting dynamics that we’ll see um a long way of answering your question key there has been a lot of negative narratives I think that the most important narrative now is just those growth statistics that we’ve seen uh I think that a lot of the managers are assessing the market seeing how things
Play out they don’t need to go quickly right and so they probably won’t and that’s fine and I think at the end of the year um when we’re all back on the beach together it’ll be it’ll be interesting to see um you know where we’re at and if they did buy based on
That thesis well they do say if you do not take the orange pill you will take the orange suppository and um you get the price you deserve so you know this is an asset look you can no longer ignore and I think you know um that’s showcasing today and it’ll be even more
Apparent um you know when the number does go up eventually and so um you we’ve got some other questions for you you know we love that your ticker is Burr right money printer go Burr and so it’s like a as a true bitcoiner right you understand um you know what the
Federal Reserve is doing and and that’s probably another discussion but um maybe tell us do you guys have any plans to uh maybe list an ethereum ETF an eth ETF is that is there any things in the works for that I know some some different companies are starting to to do that
What is your thoughts on that yeah I’m going to be so obnoxious and say that you’ll know when uh when it hits the market publicly but I can’t uh comment on our filing but I will say that despite being a Bitcoin Maxi you know true and and with my heart I do believe
Or I should say I believe that that Bitcoin is an asset to itself it is its own project and I see other projects in in a variety of Lights some are doing very interesting things but I bifurcate how I see both of them uh some of the other altcoin projects and of course
Ethereum are very interesting I do think that there’s going to be a lot of strides made uh on that front um from a spot to other um varieties around ethereum in Europe you see staking uh EFS Etc so there’s a lot of interesting work to be made um but at you’ll see
When things become public with Valkyrie just following up on you know talk about education for the fund managers right um do you think that part of that education is to show them how to analyze these new asset maybe they don’t know how to analyze it uh you know what to look for
When trying to analyze it where’s the the data for this new asset you think that I mean do you think that it’s a it’s a really important thing to do with with fund managers and and you know allocators 100% And I think that’s why your work is so important because you’re
Assisting with the fundamental analysis and what’s been lacking for traditional Finance throughout the years is having fa uh fit into what they’re used to seeing and therefore being able to make that assessment accordingly so I I completely agree with you Julio um fundamental analysis often rules the roost in traditional Finance over
Technical analysis which I think is kind of funky right now on how things are playing out so yes I completely agree it’s through education on what’s uh actually happening on the protocol why it matters uh deciphering it um that’s really going to get to that comfortable point for the alligators I
Agree and a follow up on that can you maybe give us your favorite crypto Quant feature or why you like our data and what’s so great about us that’s a hard question for her because um had researchers research and researchers they’ve been using our platform but maybe not Le right what you
Say no I I I mean it it is a tough one I think that everything you guys do is great I think your dashboard has a really Sleek UI uh I love that everything is very Community oriented about crypto Quant um so you know the other data providers it’s very much rote
Data and you guys provide that as well but I think that you know when you go to the dashboard you see the tweets from different people and what not even just your you know your team um so I feel a um a social aspect That Matters to
Bitcoin and also you know it’s nice to see what other people are saying um coming from that ta World in way too many Telegram and Discord and everything chat it was always actually very helpful to have my own hypothesis and thesis pushed back on and see other people’s
Work um so I really like that function um and then other than that again kind of when you know key and I were starting out 2020 there just wasn’t great onchain data glass node was out and a couple others um but I really liked what crypto Quant was doing for
Onchain metrics and especially minor flows um that’s always been something that I always watched very specifically um TA of course I felt much more comfortable with but um there’s no small emphasis to play on miners especially back then and when things were migrating out of China uh
Later a year later and just all those Dynamic and new countries were setting up Min Fields with different electricity usages so um I would say Gary putting me on the spot um that I’ve always really liked the work you guys do on minor flows good answer though right I
Got I mean it’s like you know I’m blushing I I like obviously a cheerleader over here we had to throw some questions at you a little challenging here um no and we appreciate that and so what do you think is um you know what’s your thoughts on like tokenomics right like tokenizing um
Equities uh inscriptions um and then also like being an asset that’s traded 24 hours a day fitting that into kind of the Wall Street like uh system like how is that going to maybe change you think maybe they will move to a 24 hours a day
Type system a lot of questions in there but maybe just maybe give us your thoughts on some of that stuff yeah so I’ll take my first stab but this is definitely your guys’s area of expertise so I’d love to crowdsource this answer as well um I think that we’re still a
Ways from seeing tokenization of real world assets obviously it’s a high priority for most of the traditional Finance Banks it’s always been um you know some of the largest asset managers it’s the Holy Grail to be able to take a a liquid portfolio like a real estate
Portfolio and make it liquid right it’s like whoa yes please right um but I think that we’re not there I I think that you know major steps are being made uh you see it in reports with City and bony and uh Bank of New York melon and
Others but the actual uh onboarding and usage of those platforms is much more sophisticated than I think it sounds um and there which is great that we’ve been able to distill it into making it sound as simple as buying a token you know or relating it to derivative or
Fractionalization but um it’s not that simple as we all know and until it’s more simplistic it’s on a blockchain and rails that uh you know traditional Finance or investors feel comfortable with wallets Etc I I think we’re years out um as for your but what what are you
Guys thinking here and yeah would love to hear your thoughts on inscriptions and ordinals since you guys are watching that all day I’ll go I’ll go first but I believe tokenomics will be the future of um the entire Equity system because you know we are dealing with naked shorts we
Are dealing with um you know counterparties um taking advantage of equities like the GameStop Fiasco like the Robin Hood okay and so people need to own their own assets so they’re not being leveraged or not being gambled with and so I I believe very strongly in toomics to where the individuals the
Powers return back to them through owning their own assets owning their own stock certificates right and so um I think that really changes the game of the rent Seekers and the um corruption that we’re trying to deal with and so I’m I’m really bullish on tokenomics on bitcoin specifically um and inscriptions
And stuff you know hey it’s great it’s a free you know it’s kind of a free world you kind do what you want with it um I think it’s a waste of Satoshi and I think there’s going to be some rug pulls there but um hey everybody deserves a
Rug they um they need so by the way I do agree with you I I think that I’m um you know reading maybe too many traditional Finance reports on what they’re trying to do on tokenization of real world assets and portfolios that it’s making me a little
Concerned but I do agree with you for Simplicity there’s already simple methods of doing that that have been out for a very long time even block strein came out with you know a uh Asset Management platform on liquid like four years ago um so you’re you’re absolutely
Right I think um I was thinking one thing but in its Simplicity I I I agree and I think that there’s already some programs that are already there for people who are a little more crypto native yeah there is an approved protocol from Patrick burn called um t0o
And some of the other stuff that was approved by finra and the SEC now that has you know not really come to infruition yet but we’ll see what happens as we move into that future um but no I’m super bullish on it and um yeah I don’t know Julio key you guys
Have any thoughts on the tokenomics for me I think that what is really good or would be really good is to have the opportunity for people to trade on like different venues uh because with cryptocurrencies I mean for example Bitcoin you can trade in coinbase or or on other exchanges Finance whatever but
If you want to trade on um like a stock it’s only trading in like one venue right so it’s a like a monopoly in that sense and so maybe with with tokenizing um other assets then there can be more more Vues to trade with and
It’s uh um people will have a choice you know to trade in in whatever they they want or or whatever they want right and so that’s a that’s a for me that’s the an upside of that democratization exactly yeah I came across a news that V uh acquired by coin
Shares recently uh congrats uh so uh just just want to know like backgrounds on this acquisition um I can’t speak much to it it’s actually going through the process right now what was announced is that that they exercise their option to acquire valkyrie’s ETF business um I
Will say that they’re lovely classy and the whole team has really enjoyed getting to know them um so but you’ll see more when it’s public but as of right now it’s still going through that transaction awesome awesome well I want to keep I want to be respectful of your
Time Le you youve been a great guest you’ve been a lot of fun uh everybody out there that’s been watching this go get an account at crypto quant.com go check us out and also go check out the valkyrie spot Bitcoin ETF right the ticker is bur BR
Rrr and have faith in knowing that like you are actually supporting a real Bitcoin OG that understands the ecosystem so if you are a holder a self custodial holder and you have some money in you know the traditional Finance world like look look up Valkyries bot Bitcoin ETF um and have confidence
Knowing that you have a warrior princess at your side that will fight for you for your entry to Valhalla okay and so um yeah I know Leo you were a great guest this was a ton of fun um anything you want to point out about the valkyrie
Specific Bitcoin ETF that you guys um you know are kind of like you know maybe um want to showcase real quick to to tell everybody about yeah and and guys thanks again for having me today this is a really fun morning um nothing particularly on our ETF but um kind of
Crowdsourcing a question here that if there’s any research you want us to do with crypto Quant um you know any specific topics that you know uh that everybody thinks that we should be diving into and any unique topics that you think that any of us haven’t thought
About diving into um you know would love to do that would love to to spin out more pieces especially together um so that’s that’s all I got it’s all I got but it’s been great having on awesome well uh we appreciate you we appreciate what you’re doing and um I guess that is
So long for now so we will catch you later everybody see you
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