The Pomp Podcast Bitcoin Rate of Return: The Only Metric That Matters | Jeff Park
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Aug 25, 2025 In this discussion, Jeff Park, a Partner and Chief Investing Officer of ProCap BTC, dives deep into the vital metrics of Bitcoin investment. He highlights how Bitcoin's volatility isn't just a risk, but a distinctive opportunity for savvy investors. Park elaborates on the necessity of normalizing Bitcoin's rate of return and its implications for institutional adoption. He also explores the shifting landscape of Bitcoin in finance, including the intriguing role of ETFs and strategies for leveraging Bitcoin in treasury operations.
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Volatility Is A Feature, Not A Bug
- Bitcoin's volatility is a designed feature caused by fixed supply and acts as a useful tool when harvested correctly.
- Volatility enables yield generation and risk management rather than being merely a nuisance.
Measure Volatility With Volume And Range
- Close-to-close volatility understates intraday price dispersion; volume matters as much as price for true volatility signals.
- Use range measures like Parkinson volatility to capture full daily motion rather than a single closing point.
Exploit Regional Vol Flows And Derivatives Signals
- Monitor regional derivatives flows and structural behavior to find arbitrage across time zones and instruments.
- Use derivatives transparency (open interest, liquidations) in crypto to anticipate squeezes and liquidity black holes.