Latest / The Paul Barron Crypto Show / 21Shares Ethereum ETF Launch️🔥What's Next? CEO INTERVIEW w/Hany Rashwan

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21Shares Ethereum ETF Launch️🔥What's Next? CEO INTERVIEW w/Hany Rashwan · The Paul Barron Crypto Show

• 0:07
  Speaker 1: All right, let's get into ETHTFS today, and we wanted
• 0:10
  Speaker 1: to dive in a little bit deeper, so we thought, hey,
• 0:12
  Speaker 1: let's get one of the asset managers on the show
• 0:14
  Speaker 1: to talk a little bit more into where Ethereum is
• 0:17
  Speaker 1: going as an ETF, what it might look in terms
• 0:20
  Speaker 1: of markets, and also how this may play out in
• 0:22
  Speaker 1: other asset in the game. I think this is gonna
• 0:25
  Speaker 1: be a good one. My name is Paul Barren, Welcome
• 0:27
  Speaker 1: back into tech Path. Joining me today is Haney Raschwan,
• 0:30
  Speaker 1: who is the co founder and CEO over at twenty
• 0:32
  Speaker 1: one Shares. Great to have you on the show.
• 0:33
  Speaker 2: Haney, thanks for having me, Paul.
• 0:36
  Speaker 1: Okay, so let's just go right into it. First of all,
• 0:38
  Speaker 1: what a day. Yesterday was one billion into ethtf's going
• 0:44
  Speaker 1: like crazy. We've started to see a lot of the
• 0:46
  Speaker 1: inflows rolling in. And I think when you look at
• 0:49
  Speaker 1: the market as is right now, and you also look
• 0:52
  Speaker 1: at the anticipation, because everybody's like, well, all right, that
• 0:54
  Speaker 1: was day one, what could it be for the rest?
• 0:57
  Speaker 1: I was just looking at a headline right here, city
• 0:59
  Speaker 1: predict five point four billion in inflows in the six months.
• 1:03
  Speaker 1: I feel like this might be a little bit low,
• 1:05
  Speaker 1: But I'm just gonna I wanted to get your opinion
• 1:07
  Speaker 1: after a billion dollar day, how does this even correlate?
• 1:10
  Speaker 3: The question is, how did you feel about this headline
• 1:13
  Speaker 3: two days ago?
• 1:14
  Speaker 2: Right, Yeah, right, that's a good question. Yeah, I think.
• 1:20
  Speaker 3: Bitcoin the ETF launches that we did earlier this year
• 1:24
  Speaker 3: in January were historic, some of the largest ETF launches
• 1:28
  Speaker 3: in ETF history based on the inflows, and I feel
• 1:32
  Speaker 3: like there was all a confluence of some a ton
• 1:37
  Speaker 3: of very positive events that came about to make that happen.
• 1:41
  Speaker 3: It was done at the right time, the right place,
• 1:45
  Speaker 3: It was the right product.
• 1:46
  Speaker 2: People were clamoring for it.
• 1:48
  Speaker 3: And we genuinely did not think that Ethereum had a
• 1:53
  Speaker 3: lot of the same variables.
• 1:56
  Speaker 2: It's the summer.
• 1:57
  Speaker 3: There's a lot more risk both economically and politically than
• 2:02
  Speaker 3: there was back in January. Things should be muted and
• 2:06
  Speaker 3: stunted quite a bit. And so we've personally felt a
• 2:11
  Speaker 3: little bit blown away with the amount of interest volume,
• 2:16
  Speaker 3: positive sentiment in what is the end of July, which
• 2:21
  Speaker 3: traditionally in the financial world is not a crazy popular
• 2:24
  Speaker 3: time to launch financial products, And so I do think
• 2:29
  Speaker 3: it speaks to how much people are looking for.
• 2:36
  Speaker 2: Investment opportunities.
• 2:37
  Speaker 3: How much people care about crypto, and I think that
• 2:41
  Speaker 3: based on yesterday, probably a little bit on the conservative side,
• 2:48
  Speaker 3: but I would have maybe said I can see it
• 2:52
  Speaker 3: happening at this level just seventy two hours ago.
• 2:55
  Speaker 1: Interesting, Okay, well good. We of course are a channel
• 2:59
  Speaker 1: that looks the technology. We break down a lot of worth.
• 3:02
  Speaker 1: These investments are going from a standpoint of just hey,
• 3:05
  Speaker 1: what is the market capacity? What could potentially be there?
• 3:08
  Speaker 1: You know when you look at a total addressable market
• 3:10
  Speaker 1: in the idea of where tech is going. So it
• 3:14
  Speaker 1: wasn't a surprise to me. I felt like, actually it
• 3:16
  Speaker 1: could have been maybe a little stronger even though, but
• 3:18
  Speaker 1: I would agree with you. I think the seasonality of
• 3:20
  Speaker 1: it probably has some bearing overall. Here's James Safer coming
• 3:23
  Speaker 1: in from Bloomberg first full day eth mistakes are in
• 3:29
  Speaker 1: and they took one hundred and seven million in. There's
• 3:32
  Speaker 1: black Rock coming in. Of course, bit wise kind of
• 3:36
  Speaker 1: led the way here, and you look at the overall
• 3:41
  Speaker 1: roster here, including twenty one shares there, and the potential
• 3:45
  Speaker 1: here for being able to really get this out there
• 3:48
  Speaker 1: in front of asset managers and just in general, I
• 3:50
  Speaker 1: think investors for you guys, what is your next step?
• 3:55
  Speaker 1: What are some of the strategies that you guys are
• 3:57
  Speaker 1: looking to do and get into motion to kind of
• 4:00
  Speaker 1: old on this.
• 4:02
  Speaker 3: Yeah, So to take a step back, twenty one Shares
• 4:05
  Speaker 3: is the world's largest issuer of crypto ETFs. We're also
• 4:09
  Speaker 3: the first issuer we first listed the global first physically
• 4:16
  Speaker 3: back crypto exchange strated product out of Switzerland, out of Zurich,
• 4:19
  Speaker 3: back in twenty eighteen, and we now have about fifty
• 4:23
  Speaker 3: of these things around the globe in Australia and the
• 4:26
  Speaker 3: Middle East and Europe where we're number one, and in
• 4:28
  Speaker 3: the US where based on bitcoin and ethereum we're in
• 4:31
  Speaker 3: third place on an aggregate basis right now. And if
• 4:36
  Speaker 3: you look at our products, fifty ETPs covering all these
• 4:40
  Speaker 3: single assets, stakable assets, thematics indices. We even have a
• 4:45
  Speaker 3: couple of shorts. You can short bitcoin or ethereum using
• 4:48
  Speaker 3: a couple of our ETFs as well. We have some
• 4:51
  Speaker 3: hybrid products with gold and crypto. And I would say
• 4:54
  Speaker 3: that if it's not super obvious with you know, with
• 4:58
  Speaker 3: my accent, we are Americans that were pushed to launch
• 5:03
  Speaker 3: this outside of America at the beginning, because America wasn't
• 5:06
  Speaker 3: ready for this on a regulatory level, and so our
• 5:10
  Speaker 3: ambition is to mirror exactly what we have done outside
• 5:16
  Speaker 3: of the United States. So our ambition is to build
• 5:21
  Speaker 3: bridges into the crypto world that involves dozens and dozens
• 5:24
  Speaker 3: of investible crypto assets.
• 5:27
  Speaker 2: We've already.
• 5:29
  Speaker 3: Started looking at additional assets beyond just ethereum, and it
• 5:33
  Speaker 3: is our hope that a we upgrade these products. Ethereum
• 5:38
  Speaker 3: launched without staking, which we've seen in a few markets
• 5:41
  Speaker 3: before where regulators sometimes get comfortable launching it first without
• 5:45
  Speaker 3: staking and then allowing us to upgrade it later, as
• 5:49
  Speaker 3: well as launching additional assets and additional strategies. And so
• 5:53
  Speaker 3: I would say it's just the beginning, and it does
• 5:56
  Speaker 3: make sense. We've opened several markets globally with bitcoin followed
• 5:59
  Speaker 3: by Ethereum, usually followed by a gush of new listings
• 6:04
  Speaker 3: and new crypto assets.
• 6:06
  Speaker 1: So right now net asset value on CETH I can
• 6:11
  Speaker 1: kind of see it going there. But back to your
• 6:13
  Speaker 1: point is that obviously these are very early days with
• 6:17
  Speaker 1: the ETF just launching, but interesting points that you made
• 6:21
  Speaker 1: in terms of the alternative of the products themselves. So
• 6:24
  Speaker 1: the appetite is clearly there from the investor community, and
• 6:28
  Speaker 1: the likelihood is we're going to see a lot more creativeness,
• 6:32
  Speaker 1: I should say, with a lot of the ASCID managers
• 6:34
  Speaker 1: going into much like what you're talking about with the
• 6:38
  Speaker 1: US getting into a position to where maybe there's some
• 6:41
  Speaker 1: regulatory alignment that could open this up. How much of
• 6:45
  Speaker 1: an impact would that have on you guys really putting
• 6:47
  Speaker 1: the hammer down in terms of new assets coming onto
• 6:50
  Speaker 1: twenty one shares.
• 6:54
  Speaker 2: We're going to constantly be pushing.
• 6:56
  Speaker 3: We're going to be pushing until we get to the
• 6:59
  Speaker 3: same heridy with our other crypto assets that we've seen
• 7:04
  Speaker 3: around the globe, whether with Solana, Ripple, Polygon.
• 7:10
  Speaker 2: Et cetera.
• 7:11
  Speaker 3: We think there's a lot of very very interesting assets.
• 7:14
  Speaker 2: Out there that are investable. I think that.
• 7:19
  Speaker 3: It takes time and people need to realize that it
• 7:22
  Speaker 3: took us a couple of years to move beyond just
• 7:25
  Speaker 3: bitcoin and ethereum the first time we did this, and
• 7:30
  Speaker 3: we have the patience and the experience of going through
• 7:35
  Speaker 3: the same experience. And so America is a new market
• 7:39
  Speaker 3: for us. We are primarily known outside of America given
• 7:43
  Speaker 3: the kind of company that we have built, but America
• 7:46
  Speaker 3: is absolutely something that has been part of the plan
• 7:49
  Speaker 3: since we started this company six or seven years ago,
• 7:51
  Speaker 3: and we're going to invest a ton in it. We
• 7:54
  Speaker 3: have an office open in New York, It has maybe
• 7:58
  Speaker 3: forty to fifty people in it, and we're going to
• 8:00
  Speaker 3: continue investing across both our American staff and our American products.
• 8:05
  Speaker 3: I would say Ethereum is just the beginning, okay.
• 8:08
  Speaker 1: All right, good to know when you look at the fees,
• 8:11
  Speaker 1: because this seems to be a very competitive marketplace right now,
• 8:15
  Speaker 1: and you look at investors coming into Ethereum maybe for
• 8:18
  Speaker 1: the first time, where they could go on to either
• 8:21
  Speaker 1: centralized exchanges or decentralized exchanges and make a trade over
• 8:25
  Speaker 1: there for the core asset versus going into an ETF
• 8:30
  Speaker 1: and having these lower fees.
• 8:31
  Speaker 2: Which is better?
• 8:32
  Speaker 1: Right now?
• 8:33
  Speaker 2: Do you guys?
• 8:33
  Speaker 1: Have you guys done the math on this for investors?
• 8:36
  Speaker 1: So I'm sure to get in that question all the time.
• 8:39
  Speaker 3: So I think that it's a very very very good question,
• 8:44
  Speaker 3: and we get it a lot. You're right, we have
• 8:47
  Speaker 3: to we have to think about who the investor set is.
• 8:51
  Speaker 3: And let me preface this with saying twenty one shares
• 8:55
  Speaker 3: me personally, we have no issues whatsoever with people holding
• 8:59
  Speaker 3: crypto physically, and it makes sense for a lot of
• 9:02
  Speaker 3: people to do so. And in order for the Ethereum
• 9:05
  Speaker 3: network to grow in value and importance, people actually need
• 9:09
  Speaker 3: to use the Ethereum network on a native level. And
• 9:13
  Speaker 3: so it's not that we see these things as competitive,
• 9:16
  Speaker 3: it's that we see the ETFs being the most appropriate
• 9:20
  Speaker 3: rapper for a certain group of people who are very,
• 9:23
  Speaker 3: very important in order for crypto to succeed. Who are
• 9:27
  Speaker 3: these people? A collection? You get retail investors who may
• 9:33
  Speaker 3: not feel technically comfortable enough to set up their own
• 9:37
  Speaker 3: wallets and exchanges. Exchanges sometimes get hacked. You need to
• 9:41
  Speaker 3: really be thinking a lot more about security and be
• 9:44
  Speaker 3: a little bit more savvy on the technical side for
• 9:46
  Speaker 3: you to feel comfortable with that. And so I think again,
• 9:50
  Speaker 3: it depends on what kind of investors, but certainly there
• 9:54
  Speaker 3: are a lot that benefit from the ETF ETP rapper
• 9:58
  Speaker 3: and it all bans the crypto market, which is incredibly
• 10:03
  Speaker 3: positive for all of us.
• 10:04
  Speaker 1: I want to go into the topic of Kathy Wood.
• 10:07
  Speaker 1: Obviously ARC Investment stepped away from the spot ETF with
• 10:11
  Speaker 1: you guys, what was the reason? I guess first, and
• 10:15
  Speaker 1: do you feel like this has a bigger impact on
• 10:18
  Speaker 1: you guys long term, because I would say ARC stamp
• 10:22
  Speaker 1: of approval would be a very positive thing for the market.
• 10:24
  Speaker 1: I feel like it would be, but I wanted to
• 10:26
  Speaker 1: get your input on it.
• 10:29
  Speaker 2: So I can't.
• 10:30
  Speaker 3: I can't speak directly to the motivations of ARC here
• 10:37
  Speaker 3: what I can. What I can say is that based
• 10:41
  Speaker 3: on their public comments, these products are very early. They're
• 10:46
  Speaker 3: not exactly doing a ton of revenues or profits for
• 10:52
  Speaker 3: the time being, and we're very long term believers that
• 10:56
  Speaker 3: they will. But at about twenty one base points, which
• 11:01
  Speaker 3: is roughly where the entire industry is, there isn't actually
• 11:05
  Speaker 3: that much revenue or profits for these products over.
• 11:08
  Speaker 2: The short term.
• 11:11
  Speaker 3: Our relationship with Kathy and with ARC started with a
• 11:16
  Speaker 3: shared love of research. And some people don't know this,
• 11:19
  Speaker 3: but ARC is actually an acronym. It stands for active
• 11:23
  Speaker 3: research knowledge and Kathy's background as an equity researcher, our
• 11:30
  Speaker 3: love for education, as you've mentioned, in research is what
• 11:34
  Speaker 3: brought us together. A lot of their research has been
• 11:36
  Speaker 3: on bitcoin, and again I can't speak to the motivations
• 11:43
  Speaker 3: of why they chose not to pursue this, but at
• 11:46
  Speaker 3: least publicly. The lack of revenues and profits made it
• 11:50
  Speaker 3: seem like this was not perhaps as high a priority
• 11:53
  Speaker 3: item for them, given everything else that they're working on
• 11:57
  Speaker 3: at the firm. From the twenty one shares perspective, regardless
• 12:03
  Speaker 3: of what ARCS priorities are. Like I said, we're the
• 12:07
  Speaker 3: world's largest issuer of these things. We've been doing it
• 12:09
  Speaker 3: for six or seven years, and while we are perhaps
• 12:13
  Speaker 3: a new name in America, it is a market that
• 12:16
  Speaker 3: we've done exceptionally well in with the Bitcoin ETF and
• 12:20
  Speaker 3: one that we intend to continue to invest in. And
• 12:23
  Speaker 3: it may take a little bit while longer again because
• 12:27
  Speaker 3: it's a new muscle that we are training, and we
• 12:29
  Speaker 3: haven't been as active in the market as some of
• 12:32
  Speaker 3: our competitors, but it is absolutely both a market and
• 12:36
  Speaker 3: a product that we intend to continue investing in and
• 12:39
  Speaker 3: bringing additional products to market in as well.
• 12:43
  Speaker 1: Yeah, okay, so I think that's a you know, fair
• 12:47
  Speaker 1: enough answer in the sense of it is early in
• 12:49
  Speaker 1: the in the cycle of how many of these things
• 12:50
  Speaker 1: are going to be going I understand, you know, ARCS position,
• 12:53
  Speaker 1: especially in mainstream you know, on Wall Street obviously, staking
• 12:57
  Speaker 1: is a big topic right now with Ethereum one of
• 13:00
  Speaker 1: the biggest, if not the most staked digital asset out there.
• 13:04
  Speaker 1: A eight of course is active on your fund. If
• 13:07
  Speaker 1: you think about that and the opportunity of staking ETFs,
• 13:10
  Speaker 1: do you feel like that is the next wave coming
• 13:13
  Speaker 1: in for a lot of these digital assets.
• 13:17
  Speaker 3: So I don't know about the order, right I don't
• 13:20
  Speaker 3: know if we list in America an additional crypto acid
• 13:26
  Speaker 3: beyond ethereum first, or make Ethereum a stakable ETF first.
• 13:32
  Speaker 3: I don't know how the timing will shake out on that,
• 13:34
  Speaker 3: But what I can tell you is that our ambition
• 13:38
  Speaker 3: is absolutely to create a staking ETF our customers wanted.
• 13:43
  Speaker 3: I think American investors deserve to have the staking yield.
• 13:47
  Speaker 3: And again from the vantage point of being very active
• 13:53
  Speaker 3: and having massively successful products around the world, we've seen
• 13:56
  Speaker 3: this before. There are a few jurisdictions where we've launched
• 14:02
  Speaker 3: stakable ethereum ETF's first, and there are a couple of
• 14:07
  Speaker 3: jurisdictions where the regulators felt most comfortable first launching Ethereum
• 14:12
  Speaker 3: without staking and other assets without staking, and then over
• 14:16
  Speaker 3: time we've been able to build that in and upgrade
• 14:19
  Speaker 3: the product. And so it's absolutely part of our plans
• 14:23
  Speaker 3: and something that we will continue to lob be for.
• 14:26
  Speaker 3: I don't know when exactly it will happen, but I
• 14:29
  Speaker 3: do think it is a matter of when, not if.
• 14:33
  Speaker 1: Which is easier to sell right now? Is the bitcoin
• 14:35
  Speaker 1: etf easier to sell? Or are you finding people asking
• 14:38
  Speaker 1: about the ETHTF more what seems to be the hot topic.
• 14:43
  Speaker 2: That's an interesting question.
• 14:45
  Speaker 4: So I.
• 14:47
  Speaker 3: Would say that bitcoin certainly has a bigger brand. I
• 14:52
  Speaker 3: think more people have heard of bitcoin. A lot of
• 14:56
  Speaker 3: people associate crypto with bitcoin. It's still a massive amount
• 14:59
  Speaker 3: of the to little crypto market cap, and it's the
• 15:03
  Speaker 3: it's the og, it's it's what started this whole thing.
• 15:10
  Speaker 3: Ethereum is much more interesting on a fundamentals level. And
• 15:16
  Speaker 3: while Bitcoin is this interesting digital gold equivalent, which is
• 15:23
  Speaker 3: insurance against bad fiscal and monetary policy, which is very
• 15:30
  Speaker 3: relevant across the world, and I would argue it's relevant
• 15:34
  Speaker 3: in America as well, but in a different way. Americans
• 15:38
  Speaker 3: love investing in gold, and our fiscal and monetary situation
• 15:43
  Speaker 3: is not quite as dire as it is in other
• 15:46
  Speaker 3: parts of the world, and that still makes sense. Ethereum
• 15:49
  Speaker 3: is actually using the blockchain. Ethereum is actually moving money,
• 15:54
  Speaker 3: building smart contract applications. Ethereum makes revenue as a network
• 16:01
  Speaker 3: from running smart contracts. And so when people think about
• 16:06
  Speaker 3: the promise of crypto, when people think about building a
• 16:09
  Speaker 3: new internet for anything that requires trust, which includes the
• 16:13
  Speaker 3: financial world but includes a lot of other applications as well,
• 16:17
  Speaker 3: they think of smart contract platforms, Ethereum is the single
• 16:20
  Speaker 3: largest one, and this kind of application and others like
• 16:25
  Speaker 3: it will be run on smart contract platforms like Solana,
• 16:29
  Speaker 3: like Ethereum, like all the others, and it's a fundamentally
• 16:33
  Speaker 3: different kind of thesis, still tied to crypto, still tied
• 16:38
  Speaker 3: to blockchain.
• 16:40
  Speaker 2: But we typically we typically see people.
• 16:45
  Speaker 3: Either invest in bitcoin for a gold bug fiscal insurance
• 16:51
  Speaker 3: monetary policy insurance kind of reason, or Ethereum for the
• 16:55
  Speaker 3: pure technological innovation and disruption aspect of it, although obviously
• 17:00
  Speaker 3: given crypto, we sometimes see people invest in both. But
• 17:04
  Speaker 3: I do think it attracts different at least a different
• 17:07
  Speaker 3: thesis for each as.
• 17:09
  Speaker 1: Yeah, well you look at this in comparison of the
• 17:11
  Speaker 1: S and P. I mean, people would look at something
• 17:13
  Speaker 1: like an Nvidia as the ethereum of what we're seeing
• 17:17
  Speaker 1: over here, most innovation versus core stocks within the S
• 17:20
  Speaker 1: and P away from the MAG seven. Then yeah, I
• 17:22
  Speaker 1: could see that being the case very hot right now,
• 17:25
  Speaker 1: even though we've seen a retracement on that on the
• 17:27
  Speaker 1: Mac seven. I think maybe we're going to start to
• 17:30
  Speaker 1: see a little bit of a renaissance here on digital
• 17:32
  Speaker 1: assets moving forward. I was looking at a tweet you
• 17:34
  Speaker 1: guys had Slana caught up with Ethereum in almost every
• 17:37
  Speaker 1: metric user's fees trading volume. There's a close ten billion
• 17:41
  Speaker 1: worth of bitcoin on Ethereum and only eighty six mili
• 17:44
  Speaker 1: on Solana, So why is there such huge descripting of
• 17:46
  Speaker 1: what is needed to close the gap. So this was
• 17:48
  Speaker 1: a big stream that you guys did explain to me
• 17:50
  Speaker 1: a little bit more about Solana and the potential here
• 17:53
  Speaker 1: for an etf Is this one that you feel like
• 17:57
  Speaker 1: could come faster or you feel like Ethereum's going to
• 18:00
  Speaker 1: be kind of the play over the next little bit
• 18:03
  Speaker 1: here before we see something many people are predicting twenty
• 18:06
  Speaker 1: twenty five.
• 18:09
  Speaker 3: It's public news, so it's very clear that we've already
• 18:13
  Speaker 3: published a listing application for Solana, and so it betrays
• 18:18
  Speaker 3: how bullish we are and how we think about that asset.
• 18:24
  Speaker 2: We also have.
• 18:24
  Speaker 3: Listed the world's first Solana etp and the world's largest.
• 18:28
  Speaker 3: We have about a billion dollars in our European Solana products,
• 18:32
  Speaker 3: and so we're very, very familiar with the Solana ecosystem
• 18:36
  Speaker 3: and again quite bullish and early supporters of it. I
• 18:42
  Speaker 3: can't speak to when these things get approved, but I
• 18:47
  Speaker 3: do believe that with respect to Solana, it's partially the
• 18:57
  Speaker 3: same thesis as ethereum. If you believe that blockchain based
• 19:01
  Speaker 3: applications and crypto in general is going to get this
• 19:05
  Speaker 3: renaissance as you've described it, then it's quite conceivable that
• 19:11
  Speaker 3: five years or ten years from now, the smart contract
• 19:15
  Speaker 3: platforms may likely eclipse bitcoin in value, because again bitcoin
• 19:21
  Speaker 3: has a ceiling that is maybe synonymous with gold. If
• 19:24
  Speaker 3: gold is worth about eight trillion dollars you mentioned the
• 19:27
  Speaker 3: Magnificent seven, they're probably worth a little bit more than
• 19:31
  Speaker 3: that technology and generalyster than that. And so I think
• 19:34
  Speaker 3: Solana Ethereum, smart contract platforms in general the very very
• 19:38
  Speaker 3: bright future. We're a core part of it, and we
• 19:41
  Speaker 3: will continue to push that, and we were loving a
• 19:45
  Speaker 3: lot of the innovation that worth seeing on the Salana ecosystem.
• 19:48
  Speaker 3: It's a bit of an upstart, but it does a
• 19:51
  Speaker 3: lot of things much better, and a lot of those
• 19:55
  Speaker 3: things happen to be areas of criticism the theory.
• 20:01
  Speaker 1: That being the case, if you look at just XRP
• 20:04
  Speaker 1: not a security been deemed that, why would we not
• 20:08
  Speaker 1: see maybe because there's no futures needed there? Why not
• 20:12
  Speaker 1: see an XRP maybe go to market much faster here.
• 20:15
  Speaker 1: I'm just thinking about what could be on the move
• 20:17
  Speaker 1: here over the next twelve months. What are your thoughts
• 20:20
  Speaker 1: on that?
• 20:22
  Speaker 3: So, just given our position, Paul, we listed the world's
• 20:27
  Speaker 3: first and have the world's largest ripple ETP, we're bullish
• 20:33
  Speaker 3: on XRP as an asset. We've published a lot of
• 20:35
  Speaker 3: security sorry, a lot of research about it, and we've
• 20:39
  Speaker 3: been comforted by a lot of the court decisions that
• 20:41
  Speaker 3: have come up.
• 20:44
  Speaker 2: On it not being a security.
• 20:47
  Speaker 3: I would say that it's absolutely part of our product
• 20:50
  Speaker 3: vision and ambition globally, not just in America. And part
• 20:57
  Speaker 3: of our thinking was, if you're in being approved, Solana
• 21:03
  Speaker 3: is actually pretty similar in a lot of ways, right,
• 21:06
  Speaker 3: and so sometimes it could be easier to make the
• 21:09
  Speaker 3: case for something that rhymes with what has already been approved,
• 21:14
  Speaker 3: rather than starting from scratch. On a new asset, but
• 21:17
  Speaker 3: it doesn't speak to any broader statement or judgment on
• 21:22
  Speaker 3: rippl xor.
• 21:24
  Speaker 1: Okay, So with all of that, we've got, you know,
• 21:27
  Speaker 1: some things happening within the opportunity here outside of traditional
• 21:33
  Speaker 1: digital assets. This is a clip that goes into, you know,
• 21:39
  Speaker 1: just in gaming in general, and I wanted to kind
• 21:41
  Speaker 1: of get your opinion because I'm wondering if we're going
• 21:43
  Speaker 1: to see some of that kind of movement into the
• 21:45
  Speaker 1: ETF side of things. Let's go to a clip real quick.
• 21:50
  Speaker 4: To approve the creation of Olympic Sports games. Who is
• 21:57
  Speaker 4: in favor of the creation of olyn peak E sports games?
• 22:02
  Speaker 4: Please raise your hand a clear maturity. But again we
• 22:06
  Speaker 4: let go for the ones who do not support the
• 22:12
  Speaker 4: no votes, please no vote no. Then this appears to
• 22:17
  Speaker 4: be correct. Is there an abstention?
• 22:21
  Speaker 3: No?
• 22:21
  Speaker 4: Thank you very much, my dear friends and colleague. With
• 22:26
  Speaker 4: your vote, you have created the Olympic Sports Games. Congratulations
• 22:33
  Speaker 4: and thank you very much.
• 22:36
  Speaker 1: So esports one of the biggest things out there, were,
• 22:39
  Speaker 1: especially in gaming, large growth crypto community very attached to that.
• 22:43
  Speaker 1: Most likely we're going to see tokens pour into that sector.
• 22:47
  Speaker 1: The potential for that, especially as gaming starts to become
• 22:50
  Speaker 1: much more popular, and the major companies that are playing
• 22:53
  Speaker 1: in this, whether it's Sony, Apple, matter, you name it,
• 22:58
  Speaker 1: we could see an explosion in this area.
• 23:00
  Speaker 2: How will you guys.
• 23:01
  Speaker 1: As asset managers start to look at this market going forward?
• 23:05
  Speaker 3: So I'll give you two answers, one personally and one
• 23:09
  Speaker 3: as the twenty one Shares hat that I sometimes wear
• 23:13
  Speaker 3: a lot of the times, where on a personal basis,
• 23:16
  Speaker 3: I'm a computer nerd that grew up playing a lot
• 23:20
  Speaker 3: of these games, the world of Warcrafts and the Ruinscapes
• 23:23
  Speaker 3: and these virtual worlds with virtual currencies, and it's very
• 23:28
  Speaker 3: clear that there's a ton of demand for them. And
• 23:30
  Speaker 3: it's clear that there is a lot of applications for
• 23:34
  Speaker 3: crypto in various ways. On the money part, certainly, but
• 23:38
  Speaker 3: also with respect to identity, with respect to non fungible
• 23:42
  Speaker 3: token NFTs, with respect to ownership, with thinking about that overall,
• 23:48
  Speaker 3: a lot of this will be built on a smart
• 23:50
  Speaker 3: contract platform. Solana, Ethereum, Polygon, Avalanche, etc. Are some of
• 23:57
  Speaker 3: the biggest ones, and so it directly benefits crypto and
• 24:00
  Speaker 3: I find this stuff very exciting. It's part of tech
• 24:04
  Speaker 3: innovation where we don't really know where this is going,
• 24:09
  Speaker 3: but it could go in a number of different ways,
• 24:12
  Speaker 3: and we probably can't predict where it's going, because you know,
• 24:16
  Speaker 3: if I made you predict where we would be in
• 24:20
  Speaker 3: twenty twenty four back in nineteen ninety eight, it's very
• 24:24
  Speaker 3: likely that none of us could have predicted where we
• 24:27
  Speaker 3: are now with Amazon or Uber.
• 24:29
  Speaker 2: Or airnb or anything.
• 24:31
  Speaker 3: And so I'm very, very excited by the innovation, and
• 24:34
  Speaker 3: I think there's a clear set of things that I
• 24:37
  Speaker 3: think crypto can help out with that I can see,
• 24:40
  Speaker 3: and I believe that's a minority of the innovation that
• 24:42
  Speaker 3: we are likely to see. So that's very very exciting.
• 24:45
  Speaker 2: Now with my twenty one shares.
• 24:47
  Speaker 3: Hat, it's a wait and see.
• 24:51
  Speaker 2: So we have a lot of.
• 24:54
  Speaker 3: Rules internally for what kind of assets we list and
• 24:59
  Speaker 3: when we them. We've lifted some assets that have to
• 25:04
  Speaker 3: do with NFT blockchains and things like that. There's a
• 25:09
  Speaker 3: flow blockchain that Crypto kiddies and I believe NBA, top
• 25:13
  Speaker 3: Shot and others have.
• 25:14
  Speaker 2: Been built on.
• 25:16
  Speaker 3: Very excited about those kinds of things, but we list
• 25:19
  Speaker 3: them relatively late in the cycle because we need them
• 25:23
  Speaker 3: to get to a proper level in terms of market
• 25:26
  Speaker 3: cab volume sentiment. They need to have weathered some storms
• 25:31
  Speaker 3: and proven to be investable before we feel comfortable putting
• 25:34
  Speaker 3: them in an ETF wrapper and making it retail and
• 25:37
  Speaker 3: institutional accessible. So we've done it quite a bit with
• 25:41
  Speaker 3: some of these gaming platforms that you can see some
• 25:43
  Speaker 3: of these innovations on. But taking it to a whole
• 25:47
  Speaker 3: other level I think will take a little bit longer.
• 25:51
  Speaker 3: But again, given how excited I am on the innovation,
• 25:54
  Speaker 3: I do think this is yet another example of a
• 25:57
  Speaker 3: F when not if.
• 26:00
  Speaker 1: I think the point here is, you know these adoption cycles,
• 26:03
  Speaker 1: whether you look at the birth of the Internet, mobile social,
• 26:06
  Speaker 1: you know that you get real bell curves in there
• 26:08
  Speaker 1: that we start to see very significant onboarding and acceptance. Gaming,
• 26:14
  Speaker 1: of course, one of the largest, if not the largest,
• 26:16
  Speaker 1: most social interaction in technology that is out there on
• 26:21
  Speaker 1: the planet. Right now, A I could start to garner
• 26:24
  Speaker 1: that kind of level, but right now gaming would pretty
• 26:26
  Speaker 1: much control that. So it'll be interesting to see how
• 26:29
  Speaker 1: this plugs in. But I think you're right, you guys
• 26:32
  Speaker 1: are in the right place at the right time, and
• 26:34
  Speaker 1: the fact that you're you know, very innovative, forward thinking
• 26:37
  Speaker 1: and you're open to where the market flow is going.
• 26:40
  Speaker 1: I think that's very key for ASSA managers like you. So, Hanny,
• 26:44
  Speaker 1: it's been great having you on the show. Thank you
• 26:46
  Speaker 1: so much for coming in today. We appreciate it.
• 26:49
  Speaker 2: Thank you for having me. This was fun, you.
• 26:51
  Speaker 1: Bet all right. So you guys, make sure if you're
• 26:53
  Speaker 1: not in the Diamond Circle right now. It is our
• 26:55
  Speaker 1: own private group where we do additional content, more education,
• 26:58
  Speaker 1: a lot, more analysis of different projects, all sorts of
• 27:01
  Speaker 1: things that we do over there that don't necessarily always
• 27:03
  Speaker 1: make it here on YouTube or within our podcast stream.
• 27:06
  Speaker 1: So make sure and jump into the Diamond Circle. Just
• 27:08
  Speaker 1: click the link down below, and of course follow me
• 27:10
  Speaker 1: out there on x at Paul Baron. We'll catch you
• 27:12
  Speaker 1: next time right here on Techpath