This week on Weighing the Risks we take a closer look at Bitcoin ETFs with Matt Hougan and Hunter Horsley, the CIO and CEO of Bitwise Asset Management respectively. Matt and Hunter bring their unique experience to bear on questions about catalysts for Bitcoin’s growth, Bitcoin “halving,” the pros and cons of owning Bitcoin itself vs. BITB, the tax implications of Bitcoin ETFs and much more. Learn more at orion.com.

Key Takeaways

• [02:28] - How does the team at Bitwise define risk and how do they think that advisors and investors should think about it?
• [04:20] - The current outlook for Bitcoin and what key factors should be considered when valuing Bitcoin.
• [04:50] - Potential catalysts for Bitcoin’s growth in the coming year(s).
• [06:40] - Other than reducing supply, what are some additional talking points around Bitcoin “halving” and why does this happen in the first place?
• [09:20] - How will the Bitcoin ETFs affect the broader ETF industry and how large of a market opportunity might exist for Bitcoin ETFs?
• [11:26] - What sets apart the Bitwise Bitcoin ETF lineup from others?
• [15:30] - What are the tax implications for an ETF of this nature?
• [18:40] - What new strategies or products might Bitwise roll out going forward?
• [21:35] - What are the pros and cons of owning Bitcoin vs. BITB?
• [27:28] - How to approach portfolio sizing and rebalancing with Bitcoin ETFs.
• [33:00] - A few potential market outcomes and how realistic they might be.
• [43:30] - What other risks should investors be thinking about right now?

Quotes

[04:41] - "Historically Bitcoin has had multiple year bull markets, usually three strong years before each pullback. When we look at the market we see a lot of catalysts that would suggest that there is reason for optimism both in the short and long term." ~ Matt Hougan

[15:30] - "Life gets a lot simpler with these Bitcoin ETFs. So, they are technically widely held grantor trusts and you get a 1099 from the brokerage or the custodian, so it’s a really simple story and I think that it is a huge advantage for advisors." ~ Hunter Horsley

Links

• Matt Hougan on Twitter
• Hunter Horsley on Twitter
• “The Final Countdown” by Europe
• “Patience” by Guns N’ Roses
• Bitwise Asset Management
• Crypto Market Quarterly Review (Q4)
• Crypto Library

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• Check Out All of Orion’s Podcasts
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Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.

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