The Hurdle Rate Podcast Episode 38 - The Incentives Are Aligned
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Dec 2, 2025 Vanguard's move to offer crypto ETFs opens up exciting new avenues for institutional investors. The discussion about MicroStrategy's new USD reserve reveals how it bolsters credit ratings and dividend coverage. Foundational metrics for Bitcoin's performance paint a picture of its long-term potential amid macroeconomic shifts. Insights on generational interest in Bitcoin highlight its growing appeal as a viable alternative for wealth preservation. Overall, the conversation buzzes with optimism for increased Bitcoin adoption.
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Institutional Incentives Are Aligned
- Vanguard opening access to crypto ETFs shows institutional incentives shift toward Bitcoin.
- BlackRock's revenue from Bitcoin ETFs pressures other firms to offer similar products.
Access Trumps Migration Friction
- Vanguard adding ETF access can unlock significant pent-up demand from customers who stayed put.
- Many investors avoid moving brokerages, so on-platform access matters for inflows.
Cash Reserve Changes Credit Narrative
- MicroStrategy's USD reserve reframes credit risk by providing explicit dividend coverage.
- The reserve forces rating agencies and markets to reassess their previous zero-credit assumptions.