Eric Golden, an expert in crypto and its overall asset class, joins Jeremy Schwartz on the podcast. They discuss the recent fee war in crypto, criminal use of bitcoin, zero fee ETFs, and the future of the crypto market. Eric shares his thoughts on Ethereum and talks about Canopy, his company's role in digital assets management.
The approval of Bitcoin ETFs is seen as a breakthrough for the traditional investment world and may pave the way for other cryptocurrency ETFs, with Ethereum being the next candidate.
Allocating a small portion of a portfolio, around 1%, to cryptocurrencies like Bitcoin can be a reasonable strategy, but it is crucial to regularly rebalance portfolios due to the high volatility of the cryptocurrency asset class.
Speculations suggest that Ethereum could be the next cryptocurrency to be approved as an ETF, given its market presence and the availability of Ethereum futures, but the timing and approval remain uncertain.
Deep dives
Inflation Reports and Market Activity
The podcast discusses recent inflation reports and market activity. The CPI was slightly higher than expected, while the PPI reversed direction. The shelter index in the CPI increased significantly, accounting for a majority of the overall increase. Oil prices remain firm due to geopolitical tensions. Bank earnings were mixed, with some surprises. The approval of Bitcoin ETFs led to initial buying, but also raised questions about future volatility and its potential impact on the market.
The Approval of Bitcoin ETFs
The podcast highlights the significance of the approval of Bitcoin ETFs. It is seen as a long overdue milestone for the asset class and a breakthrough for the traditional investment world. The discussion includes the potential impact on the markets and the expectations for future adoption and advertising. The approval is expected to pave the way for other cryptocurrency ETFs, with Ethereum being the next candidate.
The Importance of Risk Allocation
The podcast emphasizes the importance of risk allocation and asset diversification when investing in cryptocurrencies. It suggests that allocating a small portion, around 1%, of a portfolio to cryptocurrencies like Bitcoin can be a reasonable strategy. The discussion also mentions the need to rebalance portfolios as the cryptocurrency asset class experiences high volatility.
The Future of Cryptocurrency ETFs
The podcast explores the future of cryptocurrency ETFs beyond Bitcoin. It speculates that Ethereum is likely to be the next candidate for approval as an ETF, given its market presence and the existence of Ethereum futures. However, the timing and approval are uncertain. The podcast also raises questions about how the ETF market will develop further, with a potential consolidation of products and the emergence of dominant players in the space.
Building an Investment Technology Platform
The podcast briefly mentions an upcoming project called Canopy, which aims to develop an investment technology platform for advisors. Canopy plans to provide customizable and tax-individualized portfolios, focusing on multi-asset class strategies. The platform aims to optimize tax management and provide flexibility in asset allocation. Canopy is currently in stealth mode and more details are expected to be revealed in the future.
Show from 01/12/24
Host Jeremy Schwartz begins by asking Professor Siegel about all the new data that has come out this past week. The Prof gives us a breakdown of all this new data stating that the economy keeps moving along positively. Jeremy asks the Prof about the Red Sea attacks and how the Fed should be thinking about raising rates during this time. (13:29 Eric joins Jeremy to talk about the current state of crypto and its overall asset class. He talks about the most recent fee war that occurred and why some brokers are still preventing trades. The two discuss the fear behind the criminal use of bitcoin compared to cash. Eric gives us his thoughts on zero fee ETFs, treating ETFs as if they are companies and whether there will be a large amount of crypto currencies as time goes on. Jeremy asks Eric how advisors should size crypto in their portfolios. Eric comments on Ethereum and the market's anticipation of its growth. Eric dives into Canopy and what the future holds for his company.
Guest: Eric Golden is the founder and CEO of Canopy, a digital assets management platform for RIAs and Family Offices. Before pursuing digital assets full-time, Eric was the Managing Director and Portfolio Manager of Personal Bond Management (PBM) at Fidelity Investments. In this role, Eric created a new business to manage individual bond portfolios at scale. He founded the business in 2015 and launched it to the public in 2017. By March 2021, PBM grew to $18B in assets, across 23,000 clients and executed 2,000 trades per day with a team of only five people.
Learn more about Eric at: https://us.money2020.com/agenda/speakers/eric-golden-s103-78716
Follow Eric on Twitter: @ericgoldenx
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