The Derivative

Portfolios of Power Futures with AMPD ETF’s Tim Kramer

Aug 31, 2023

Join Tim Kramer, seasoned energy and power trader and CEO of CNIC Funds, on a stimulating conversation about electrifying America, the challenges facing renewable energy, creating innovative indices, the dynamic interplay between power and commodities, carbon offset vetting, and the legitimacy of Bitcoin mining on power grids.

01:00:42

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Episode guests

Timothy Kramer

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Quick takeaways

Electricity should be included in inflation-protecting commodity investments due to its importance, inflation potential, and imbalance.

Creating an electricity index and ETF provides a simplified way for investors to gain exposure to the electricity market.

Transparency and collateralization are crucial in the design of the electricity ETF, utilizing exchange-traded futures for efficiency and tracking performance.

ESG trends have an impact on the energy space, with uncertainties surrounding classification and the need for verifiable carbon neutrality.

Deep dives

The Opportunity of Electrification of America

The podcast discusses the opportunity presented by the electrification of America, highlighting the importance, inflation, and imbalance surrounding electricity as a commodity. It emphasizes the potential for electricity to become a significant component of commodity exposure, particularly with the declining consumption of fossil fuels. The correlation between electricity and GDP is examined, with electricity usage expected to be less affected by recessions compared to other commodities. The episode also explores the use of carbon offsets and the necessity to utilize legitimate and exchange-traded offsets for transparency and compliance.

Introduction

2min

Weather, Background, and the Electrification of America

4min

Growing Demand for Electricity and Transition to Electric Vehicles

2min

US Inflation Reduction Act and Its Impact on Electricity and Infrastructure

8min

Economics of Carbon Sequestration and ESG

6min

Electricity Demand and Supply Dynamics

13min

Simplifying Access to the Energy Market

23min

Challenges of Metals for Storage and Battery Capacity

2min

Is electricity a commodity? If not, why not? If so, how do you get exposure with the demand for electricity set to possibly outstrip the world's forthcoming technological advancements. Join us on a high energy episode of The Derivative by RCM Alternatives for an in-depth exploration of "Electrifying America" with Timothy Kramer, a seasoned energy and power trader and CEO of CNIC Funds – the group behind the AMPD electricity ETF. In this stimulating conversation, Kramer sheds light on the difficulties of accessing the power market, why electricity should be part of any inflation-protecting commodity investments, and what the overall landscape looks like for America's electrification journey, unveiling three key pillars: importance, inflation, and imbalance.

From the coming era of all-electric vehicles to the challenges facing renewable energy, Kramer navigates the complexities and opportunities. He also delves into the creation of innovative indices and the dynamic interplay between power and commodities — SEND IT!

Chapters:

00:00-01:53 = Intro

01:54-03:53 = Texas is How Big?

03:54-17:38= The Electrification of America, Power’s Supply/Demand

17:39-23:48= ESG push back & removing carbon = Carbon Neutral

23:49-36:47= Creating an Index- AMPD: Deregulation, power generation & retail providers

36:48-44:12= The power players in the power market

44:13-54:23= Carbon offset vetting and commodity exposure

54:24-01:00:42 = Is Bitcoin mining a legit use on power grids?

From the episode:

The Electrification of America

https://www.cnicfunds.com/

The Kaoboy of convertible Arb with Michael Kao Derivative episode

Super storms, mathematical modeling, and hurricane hunting with Dr. Jeff Masters Derivative episode

Follow along with Timothy on LinkedIn and check out all the links above for more information!

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer

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The Derivative

Portfolios of Power Futures with AMPD ETF’s Tim Kramer

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Opportunity of Electrification of America

Creating an Electricity Index and ETF

Transparency and Collateralization

Impact of ESG Trends and Volatility

Conclusion and Unique Positioning

Introduction of the AMP ETF and Index

Potential Expansion and Future Products

Remember Everything You Learn from Podcasts