November 22, 2024
“Something Massive Is Coming… It’ll SHATTER ALL RECORDS” – Matt Hougan
 #Finance

“Something Massive Is Coming… It’ll SHATTER ALL RECORDS” – Matt Hougan #Finance


particularly Bitcoin is ultimately a financial asset and so if it if you want it to function as a financial asset you need all the things that Finance people do the other the biggest

mistake the most important people mistake I think 90% of people in Crypto are making is that they don’t realize that #1a73e8; text-decoration: none;">ETFs are multi-year stories so usually in an ETF it really struggles to get any Assets in its first six months or its first year or its first two years and hits its stride in years three four five six seven and eight if you look at the Gold ETF

when it launched everyone was excited the best performing ETF of all time year one was the smallest year I think maybe it ever had until it had a negative year it had eight years of ascending flows the recent surge in bitcoin’s price has highlighted the growing role of

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Cryptocurrency in the financial World particularly with the emergence of exchange traded funds none;">ETFs focused on digital Assets like Bitcoin these Bitcoin ETFs have quickly gained traction accumulating billions in Assets and setting new records

compared to traditional Financial products as bitcoin’s value climbs more investors are seeking exposure through these ETFs incorporating digital Assets into their

Portfolios despite concerns about volatility and risk Matt hugan a leading expert in Crypto text-decoration: none;">ETFs and financial technology discusses the common expectation for Rapid success with new ETFs in the color: #1a73e8; text-decoration: none;">Crypto industry while traditional ETFs often take years to reach their full potential the introduction of Bitcoin

style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs has sparked strong interest among mainstream investors Bitcoin straightforward narrative as digital gold and its well-established Valuation model make it a compelling investment Choice especially during

times of price growth as digital Assets continue to gain acceptance Bitcoin ETFs represent a long-term growth opportunity with the potential to further integrate

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Cryptocurrencies into the financial mainstream the recent price increase only reinforces the momentum signaling that the market is beginning to embrace these Innovative Financial products watch

clips from the interview to hear more about Matt Hogan’s perspective don’t forget to like this CashNews.co subscribe to the channel and enable post notifications for more updates and in-depth content thanks for joining us once again enjoy the CashNews.co the most successful ETF launch

prior to these was the q’s the NASDAQ 100 Q’s which launched in the 1999 Tech bubble right perfect timing and gathered five billion do in Assets and the Bitcoin ETFs

are up to 20 the year’s not over uh I think that number could go up significantly after we get past the election so maybe we end at 25 plus billion so that’s not just beating it that’s like shattering the record right it’s not even close close investors were very eager to

gain exposure to this asset class the ETFs came off with an incredible offering from a price perspective and that’s just a perfect combination and to see 20 it’s going to be 25 it

could be more than that billion dollars in their first year um yeah it’s just a grand slam I think there are two factors at work so the first is I think there were a lot of nonbiased investors in eth E the grayscale product right because once the Bitcoin product converted we knew everyone

knew we would eventually get an ethereum ETF now we got it faster than we thought but everyone knew that would happen and so I think a lot of the Assets that were in eth at that point were people arbitraging the discount in that market and those just rotated out when we switched

over to an ETF if you look at the the the individual ETFs they’re doing quite well right uh I Shares is above a billion dollars at bitwise we’re around $300 million

$300 million in three months in an ETF is like one of the 50 fastest growing ETFs of all time right so so doing just fine from that perspective but I think a lot of money rotated out of uh eth

and the Arbitrage play the other factor is that it was just too soon I mean I said this before the ETF launched it would have been better to launch those products in January or February of 2025 people are still getting their hands around Bitcoin and their hands around

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto and accepting Crypto as an asset class once you have to have a complicated

conversation about how Bitcoin is different from ethereum with a financial advisor that’s like a many month conversation it would have been better to have more time for Bitcoin to season before we got eth but you know look I think we’ll look back in a couple years and there’ll be

1020 billion dollar in ethereum ETFs and everyone will be happy I think eth is still finding its exact place in the world when we talk about Bitcoin we talk about it as sort of filling the same

role as gold but in a digital format and that’s a beautiful simple narrative I think it’s accurate I think a lot of people are concerned about Fiat debasement I think a lot of people concerned about hedging against Inflation um I think a lot of people think monetary

authorities are out of control and so Bitcoin sells easily into that also has an easy Valuation metric right you can look at the market for gold you can look at the market for other stores of value and you can arrive at a value Valuation Target for Bitcoin so

that’s easy when we talk about ethereum you know what you’re talking about is a public computer we talk about it as a new platform on which you can build applications that can change the world right so just like iOS is a centralized platform on which applications like uber are built

ethereum is a decentralized platform on which applications are built the beauty for institutional investors if you look at the killer apps in Crypto outside of money they’re all built on

primarily ethereum stable coins are an absolute killer app that institutional investors can understand the majority of stable coins are issued on ethereum tokenization is a killer app that institutional investors are more excited about than the reality in the market but it’s still a big idea

and all of that or most of that is being built on ethereum even when you get to sort of individual applications a lot of them resolve to ethereum as well right polym Market built on polygon But resolves ultimately into the ethereum ecosystem so when you talk about this new application sort of new

application layer on which killer apps are built I think that appeals to institutional investors but it’s a more complex story right and it’s a more complex Valuation case and it’s newer so I think it will inherently take more time Matt hugan underscores the

notable success of Bitcoin ETFs which have amassed 20 billion significantly exceeding the $5 billion raised by the NASDAQ 100 Q’s during its 1999 launch with projections to reach $25

billion this represents a substantial milestone for Bitcoin ETFs in contrast ethereum none;">ETFs initially dominated by arbitrageurs experienced asset rotation following Bitcoin ETF launches despite this ETFs like iShares and bitwise are performing well

hugan however argues that ethereum ETFs may have been introduced prematurely as the market is still adjusting to bitcoin Matt hugan highlights two misconceptions about

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs especially in Crypto First Investors Focus too much on daily ETF flows which can be

misleading due to timing discrepancies he recommends looking at weekly or monthly flows for a clearer picture second he stresses that ETFs are long-term Investments typically

taking years to reach full potential he cites the gold etf’s gradual growth and predicts similar trends for Crypto #1a73e8; text-decoration: none;">ETFs hugan views ETF growth as a steady staircase rather than an immediate Spike let’s go back to the interview and watch more Clips to gain insights from Matt hugan I would say there are two there are two different sides of the spectrum um one is the

obsession with daily flows is completely wrong because the way authoriz participants work um the flows that you see reported in ETF today may have come in yesterday may have come in the day before maybe coming in two days from now right there’s not a like a one for one exact alignment of when

an end investor wants exposure to X and when you see a flow uh posted on the board and because people don’t understand the plumbing of that they overly focus on daily flows my advice would be like look at weekly flows look at monthly flows monthly flows really smooth that out you get a feel

for where people are going daily flows like I don’t know we had $100 million in R ETF the other day and then we had zero it wasn’t that there was Zero demand it’s that APS are averaging it out um so that’s one mistake the other the biggest mistake the most important people

mistake I think 90% of people in Crypto are making is that they don’t realize that none;">ETFs are multi-year stories so usually in an ETF it really struggles to get any Assets in its first six months or its first year or its first two years and it hits its stride in years three four five six seven and eight if you look at the Gold ETF when it launched

everyone was excited the best performing ETF of all time year one was the smallest year I think maybe it ever had until it had a negative year it had eight years of ascending flows the reason I bring that up is I’ve High degree of confidence that flows in 2025 will be bigger than Flows In

2024 and then I have a high degree of confidence that flows in 2026 will be bigger than 2025 the reason for that is it’s still getting turned on at Morgan Stanley it’s still getting turned on at Wells Fargo people are still studying it it’s moving into the mainstream so the

biggest mistake I think people make is like imagining that we’re on this this oneoff rocket ship that then lands it’s actually no this is a staircase right that’s the way every ETF almost ever has worked Maybe This Time It’s Different different who knows but my bet is that

we’re on that staircase and we’re going to look back in a few years at like oh wasn’t 2024 cute I mean the first thing to remind traditional investors is that like Bitcoin is not like a virus if you add 1% Bitcoin to your Portfolio uh you can lose 1% of your money

it doesn’t infect the other 99% nothing terrible happens you buy it and you wake up the next morning and you’re just the same as you always were um we we love this study it it’s looking at what happens when you add one 2 and a half 5% Bitcoin to a 6040 stock and bond

Portfolio and I think this really teaches you an important thing so I would look at the two and a half percent line that’s sort of the um the average bitwise client allocation and what you see here is that adding just two and a half% Bitcoin to a traditional

Portfolio significantly boosts your uh your overall return right uh you know 50% over this time period it boosts it multiple percents over a onee or threeyear period and then the important thing is it does that without increasing the standard deviation right your standard deviation

goes from 10.25 to 10.58 and the reason for that is something that everyone knows which is Bitcoin has low correlations to stocks and Bonds and when you put a low correlated asset and rebalance it in a Portfolio um it leads to higher risk adjusted returns with no

real impact on volatility you can see here yeah the correlations we have from our quarterly report the US Equity correlation is below 0.5 which means it’s still low that’s actually elevated from where it usually is it’s usually below 0.25 but even at 0 49

it’s still so much lower than the correlation between most Assets meanwhile as bitcoin’s price hovers around the $69,000 mark optimism surrounding altcoins is rising Bitcoin has shown resilience in testing key resistance levels which has led many traders to anticipate

significant gains in altcoins this optimism extends to Cryptocurrencies such as salana ethereum and enac coin which may see upward Trends if Bitcoin continues its upward trajectory

ethereum’s current trend is a topic of interest for analysts with the Cryptocurrency needing to hold above 0.046 Bitcoin to prevent fur declines recent consolidation hints at a potential

reversal if ethereum can break through its descending trend line This critical support level is being closely monitored by Traders who believe it will play a crucial role in ethereum’s price movement in the coming weeks meanwhile salana is maintaining its Competitive Edge against ethereum

with a current value of $158 the strength of its Network and active Community is boosting investor confidence Market analysts point to a Breakout from a descending wedge pattern with potential Target prices for salana set at $19.6 and possibly higher if salana maintains its momentum it may reach

further price targets of $162 and $188 in conclusion bitcoin’s recent surge is enhancing prospects for altcoins with analysts predicting favorable conditions for Cryptocurrencies like

ethereum salana and enac coin there is growing optimism that altcoins will continue to experience price peaks in the near future as we wrap up what are your thoughts on the growing role of none;">Cryptocurrency ETFs in the financial world do you think digital Assets like Bitcoin and ethereum will continue to reshape traditional Investment

Strategies or will more time be needed for full integration please share your thoughts in the comments below share this CashNews.co and hit your thumbs on the like button thanks for watching and don’t forget to subscribe

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