00:00So talk to us about why this specific blend, 75% the S&P...
00:05500 and 25% Bitcoin.
00:08Thank you, Katie. Sure.
00:10In 2024, when this launched, Bitcoin had an up year and it's...
00:15instead of 25% in the S&P 500...
00:20BBB did 39%, so you got an extra 14%.
00:25By having the blend, conversely, last year when Bitcoin had a down year instead of being down...
00:307%, BBB was up over 10%, so the methodology...
00:35is sitting there for investors that are Bitcoin hesitant, crypto hesitant.
00:39They know it's...
00:40they know it's an asset class they need to jump into, but they needed a better structure, a little...
00:45safer structure, more familiar for them to jump in.
00:47I think the first people into Bitcoin...
00:50came in over the last 15 years, plus years, and then they didn't care that it was an unregulated...
00:55market.
00:56Last year, the regulated people came in and now you have the Bitcoin hesitant.
01:00So...
01:00that's the reason for the 75-25 methodology is just to provide...
01:05a more stable base, but you have the crypto power.
01:08It's like a starter investment for people.
01:10who are, you know, just exploring crypto.
01:12Why Bitcoin futures and not Bitcoin itself?
01:15as the 25%?
01:17You know, we are converting to...
01:20spot next week on this product, so we are moving over to spot it.
01:25initially, we didn't want to take the custody risks.
01:27We felt like there was a lot of...
01:29uh...
01:30single...
01:31single...
01:32uh...
01:33company risk with Coinbase having the vast...
01:35majority of all the coins, and we didn't mind the tracking error from...
01:40from the futures market.
01:42But...
01:43as we move forward and as we're launching...
01:45four new ETFs are scheduled to launch shortly here with the same 75-25 methodology.
01:50uh...
01:51we decided...
01:52as a company...
01:53we wanted to move to the spot...
01:54space...
01:55and not have to worry about the tracking error from the futures.
01:58And so you think about when you launched...
02:00this ETF at the end of 2023, it was a much different world when it comes to...
02:05you know, the average investor's socialization, education, and acceptance of...
02:10crypto...
02:11now, in 2026, just the start of 2026, do you think that there's...
02:15still a need for this fund to...
02:17sort of...
02:18you know, have this...
02:19sort of hand-holding...
02:20type...
02:21relationship with people getting this crypto exposure?
02:23Sure...
02:24we're still...
02:25not so early...
02:26I think...
02:27uh...
02:28if you look at...
02:29if you look at the...
02:30Wall Street in terms of 100...
02:30about $3 trillion...
02:31about $3 trillion...
02:32has come into the crypto space...
02:34so essentially...
02:35you have...
02:36you have...
02:37you have...
02:3897 million...
02:3997 trillion dollars...
02:40that are still sitting there...
02:40and there's a good chunk of that money that's going to continue to migrate into...
02:45the crypto space...
02:46so...
02:47I think...
02:48they...
02:49they're the Bitcoin hesitant...
02:50and...
02:50and...
02:51actually...
02:52the third wave...
02:53I...
02:54I see the first two waves as...
02:55as being the unregulated...
02:55the regulated wave...
02:56the regulated wave...
02:57and now that third wave...
02:58is the...
02:59the Bitcoin hesitant...
03:00which I think...
03:00a majority of those...
03:01happen to be...
03:02financial advisors...
03:03who...
03:04take a little bit longer...
03:05to warm...
03:05come up to a new asset class...
03:06but their gatekeepers are $30 trillion in assets...
03:08so...
03:09I think...
03:10from a food...
03:10fiduciary risk standpoint...
03:11and helping clients...
03:12get in for the long run...
03:13we...
03:14we...
03:15believe Bitcoin...
03:16headed to...
03:17a million dollars...
03:18over the next decade...
03:19so...
03:20that's the long term...
03:20we want...
03:21we want our shareholders...
03:22to be able to...
03:23take...
03:24part in that...
03:25and we think...
03:25we're...
03:26believing in that...
03:27the S&P base...
03:28is the smart play...
03:29to do that...
03:30very quickly...
03:31Michael...
03:32would you consider...
03:33using ether...
03:34like...
03:35launching an ETF...
03:35where...
03:36ether would be...
03:37part of the 25%...
03:38instead of Bitcoin...
03:39yes...
03:40we are...
03:40so we filed...
03:41four new ETFs...
03:42they're set to launch...
03:43shortly here...
03:44which is...
03:45I'm imagining...
03:46why I'm on...
03:45the...
03:46the...
03:47you will see...
03:48we have...
03:4975...
03:5025...
03:51e...
03:5275...
03:5325...
03:54e...
03:5575...
03:56e...
03:5775...
03:58e...
03:5975...
Comments