The Inside Story of the Bitcoin ETF Race With Matt Hougan, Trading the Hateful Eight, Goldman and Morgan Report
Jan 17, 2024
01:35:50
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Bitwise CIO, Matt Hougan, shares insights on the Bitcoin ETF approval process. Topics discussed include despised Nasdaq stocks, financial earnings reports, the evolution of Bitwise Asset Management, the labeling and perception of cryptocurrencies, marketing strategies for Bitcoin ETFs, Grayscale's financial struggles, comparisons between Bitcoin ETFs and brokerage accounts, increasing disagreement among forecasters for 10-year interest rates, AI device R1 and Vision Pro, Apple's new product, profitability of buying more AMD stock, and analyzing the spike in VIX and its impact on stock volatility.
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Quick takeaways
Goldman Sachs and Morgan Stanley are focusing on asset and wealth management, despite challenges in the low interest rate environment.
Morgan Stanley's Q4 earnings showed the growth of the wealth management division, targeting $10 trillion in assets.
The recent spike in VIX and 10-year Treasury yield suggests potential market volatility.
Deep dives
Goldman Sachs Q4 earnings: Progress after a tough year
Goldman Sachs reported Q4 earnings that showed progress after a tough year. While investment banking and trading revenue were down, the asset and wealth management division saw a 23% increase in revenue. The CEO emphasized a narrowing of strategic focus and moving away from non-core businesses. However, investment banking fees and trading activity still have room for improvement.
Morgan Stanley Q4 earnings: Transition to new CEO Ted Pick
Morgan Stanley's Q4 earnings marked the transition to new CEO Ted Pick after James Gorman's retirement. The quarter showed the continued growth of the wealth management division and the target to reach $10 trillion in assets. However, the wealth management revenue was flat year over year, reflecting challenges in an environment of low interest rates and high cash levels among clients. The stock price faced a decline due to lower-than-expected margins in the wealth management business.
The future of banking and the growing importance of asset and wealth management
Both Goldman Sachs and Morgan Stanley are shifting their focus towards asset and wealth management, reflecting the growing importance and profitability of these divisions. They are seeing increasing asset inflows and are targeting higher margins. However, the low interest rate environment and high cash levels among clients present challenges in maximizing profitability. Wealth management is expected to continue to play a significant role in both banks' strategies going forward.
AMD's stock price has seen a significant increase since December
AMD's stock price has risen 25% since December 7th, demonstrating the importance of not doubting a stock when it shows strong gains.
The VIX and 10-year Treasury yield are worth monitoring
The recent spike in the VIX, accompanied by an increase in the 10-year Treasury yield, suggests that volatility may return to the market. Investors should keep an eye on these indicators as they could impact stock market performance.
On this episode of TCAF Tuesday, Josh Brown and Michael Batnick are joined by Bitwise CIO, Matt Hougan, to get a behind the scenes view of the Bitcoin ETF approval process. Then, on an all-new episode of What Are Your Thoughts, the guys discuss: the Barron's Roundtable, financials reporting, stocks for 2024, AMD, Virtual Reality, and much more!
Thanks to Public for sponsoring this episode. Go to https://public.com/compound to lock in a 5.1% yield on your cash.
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