Latest / The Paul Barron Crypto Show / Crypto ETF Floodgates Open!🚨Bloomberg Intelligence INTERVIEW🔥

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Crypto ETF Floodgates Open!🚨Bloomberg Intelligence INTERVIEW🔥 · The Paul Barron Crypto Show

0:00
Speaker 1: Let's dive into some topics today around ETFs and also
0:02
Speaker 1: the impact of what happened with the FED yesterday. It's
0:05
Speaker 1: going to be a good one. My name is Paul Barron.
0:07
Speaker 1: Welcome back into the show. I want to thank our sponsor,
0:09
Speaker 1: and that is Coinbase. This is where you guys can
0:10
Speaker 1: get started in crypto. And by the way, if you
0:13
Speaker 1: haven't applied for early access to the coin based credit card,
0:16
Speaker 1: you can do that as well, earning up to four
0:17
Speaker 1: percent back in bitcoin on every purchase.
0:21
Speaker 2: So check it out.
0:22
Speaker 1: You guys can go from there. Listen, we've had James
0:23
Speaker 1: Seyfert on the show before. I wanted to welcome him
0:26
Speaker 1: back in coming in from Bloomberg Intelligence.
0:29
Speaker 2: How are you, James, I'm good.
0:31
Speaker 3: How are you doing, Paul, happy to be back.
0:33
Speaker 2: Yeah, nice to see you.
0:34
Speaker 1: Listen, a lot has happened yesterday with the FED. We're
0:38
Speaker 1: going to break into all of that. Before I dive
0:41
Speaker 1: INTOTO what's happening there, I want to go over to
0:44
Speaker 1: what's going on in DC, and that is this right here.
0:47
Speaker 1: Coinbase CEO Brian Armstrong says he's in DC working to
0:50
Speaker 1: get crypto market structure passed. This, of course, could change
0:53
Speaker 1: things up a lot, and if you look at not
0:57
Speaker 1: only that, and what he just announced yesterday or I
1:00
Speaker 1: guess here early, was that they're getting ready to get
1:03
Speaker 1: into allowing you to earn some more yields on lending
1:07
Speaker 1: your USDC. So a lot of things active right now
1:10
Speaker 1: in the markets. What is your take on how DC
1:14
Speaker 1: is responding to all these new innovations, especially around market structure.
1:20
Speaker 3: Yeah, you know, it's funny. I feel like in the
1:21
Speaker 3: crypto world everyone's screaming that they're moving too slowly, but
1:24
Speaker 3: if like you know how fast things usually work down there,
1:26
Speaker 3: it's like moving really fast. I mean things are moving
1:29
Speaker 3: really quickly. Obviously they're pushing we get the stable coin
1:31
Speaker 3: build a Genius act they went through, they're working on clarity,
1:34
Speaker 3: the big news yesterday with ETFs and the generic listening
1:36
Speaker 3: centers which we're going to get into. I mean, it's
1:40
Speaker 3: moving quickly, and they're moving strongly in the direction that
1:44
Speaker 3: most people in this space would like them to go.
1:46
Speaker 3: So I mean, as far as like normal peoples, are
1:49
Speaker 3: they moving fast. I guess not. I'd spend a few
1:52
Speaker 3: months and not a lot has change, but there's enough
1:54
Speaker 3: changing and things are moving fast enough that people should
1:56
Speaker 3: be very grateful for what's happening right now.
1:59
Speaker 1: It is very bullet I want to play a clip
2:01
Speaker 1: for you. This is Brian Armstrong talking about where he
2:05
Speaker 1: sees the market heading. Obviously this is Coinbase's position. Let's
2:08
Speaker 1: go ahead and play that one.
2:10
Speaker 3: We're trying to do. We're trying to create more economic
2:12
Speaker 3: freedom in the world and update the financial system.
2:14
Speaker 4: At the heart of the debate, banks want to ban
2:16
Speaker 4: crypto exchanges like coinbase from offering rewards to customers. Treasury
2:21
Speaker 4: Department report found six point six trillion could be transferred
2:25
Speaker 4: from bank deposits to stable coins, driven in part by
2:28
Speaker 4: consumers trying to get the best bang for their buck.
2:32
Speaker 4: In JP Morgan chases. Jamie Diamond was also on Capitol
2:35
Speaker 4: Hill yesterday, but he told me that he's not against crypto,
2:38
Speaker 4: and so what banks are saying is, hey, if you
2:41
Speaker 4: could just chap make that change, close that loophole, we'd
2:44
Speaker 4: appreciate that. Crypto of course wants to make sure that
2:47
Speaker 4: it's keeping open and really this is the big tension point.
2:51
Speaker 2: So James, what do you think is going to happen here?
2:53
Speaker 1: Do you think we'll get some relief on Maybe banks
2:57
Speaker 1: actually offering some yields here.
2:59
Speaker 2: What's your thoughts on this?
3:01
Speaker 3: Yeah, I don't know. I mean, right now, the loophole,
3:03
Speaker 3: I don't know how you close that loophole, like offering
3:05
Speaker 3: sorts of words with like only focusing on these stable
3:09
Speaker 3: coins versus the banks, Like it's going to be very
3:11
Speaker 3: hard to do that. And honestly, like you saw, I
3:14
Speaker 3: don't remember which FED governor, but one of the FED
3:16
Speaker 3: governors basically came out and said, our job is not
3:18
Speaker 3: to protect banks from competition. Right, So, yeah, I think
3:22
Speaker 3: I think ultimately I hope that this loophole reains open. Honestly,
3:25
Speaker 3: I think I think it like I would prefer to
3:27
Speaker 3: see it like explicit that they can actually offer interest
3:30
Speaker 3: through these these stable coins. Right. So my personal view
3:33
Speaker 3: is I really hope this doesn't happen. I won't say.
3:36
Speaker 3: I'm not a DC insider though, so I don't know
3:37
Speaker 3: how it's going to play out in the bank lob.
3:39
Speaker 3: It is obviously very powerful, and they're pushing hard to
3:40
Speaker 3: prevent this because they see this as a threat. But
3:42
Speaker 3: at the end of the day, I mean, I don't
3:44
Speaker 3: I don't think it's really going to be that impactful
3:46
Speaker 3: to most of the banking industry anytime soon.
3:49
Speaker 1: That's interesting when you mean not impactful, because it's going
3:54
Speaker 1: to take a while for this to play out, or
3:55
Speaker 1: do you think that it won't happen.
3:58
Speaker 3: I think it'll take a long time for this to
3:59
Speaker 3: play out.
4:00
Speaker 2: I mean banks.
4:01
Speaker 3: Yeah, they're going to be in this industry no matter
4:02
Speaker 3: what you do, no matter how you slice it, They're
4:04
Speaker 3: gonna they're gonna get into this and slice it up themselves.
4:07
Speaker 3: So we're so early in figuring out exactly how this
4:11
Speaker 3: is all exactly on the line.
4:12
Speaker 1: Yeah, well, listen, Tom Lee, one of the proponents of blockchain,
4:18
Speaker 1: is now out there saying, hey, Wall Street's preparing to
4:20
Speaker 1: build its core infrastructure on eth. He calls it the
4:23
Speaker 1: backbone of global finance. What is your take on what
4:27
Speaker 1: Tom's been doing, because obviously he is he's got a
4:30
Speaker 1: you know, he's got a dog in.
4:31
Speaker 2: The hunt with B M and R. But he is
4:33
Speaker 2: out there, man, he is out there just preaching. What
4:37
Speaker 2: are what are your thoughts about this?
4:38
Speaker 3: Yeah? I actually so. I was at the future Proof conference,
4:41
Speaker 3: which is a big trad fire conference for wealth advisors,
4:44
Speaker 3: and I actually was on stage after Tom. I had
4:46
Speaker 3: to follow him and I was somewhat tokenization. I got
4:49
Speaker 3: to talk with him for a little while about this.
4:51
Speaker 3: I mean, he's so extremely bullish on this entire like
4:55
Speaker 3: tokenization realm of things. Right. Yeah, he's putting his money
4:59
Speaker 3: where a mouth is. I don't know how successful it's
5:02
Speaker 3: going to be, but I mean I can tell you
5:03
Speaker 3: right now the money is pouring in both from these
5:05
Speaker 3: dat coos, these digitalish of treasury companies, and money was
5:08
Speaker 3: pouring to the ETFs. I mean, if you look at
5:10
Speaker 3: the etherory of metfs in the US alone, the spot ETFs,
5:13
Speaker 3: they've taken in about nine billion since the end of June,
5:16
Speaker 3: So in total, since they launched last July, they've taken
5:19
Speaker 3: in about fourteen billion. Nine of that came in the
5:21
Speaker 3: last like less than three months. So the narrative shift,
5:26
Speaker 3: the momentum trending is is obviously very strong towards towards
5:29
Speaker 3: eth and part of that Tom Lee and others are
5:32
Speaker 3: definitely to blame or can take credit for for at
5:35
Speaker 3: least what's happening in my view.
5:37
Speaker 1: Rotation right now with inflows e versus Bitcoin. Do you
5:41
Speaker 1: think this is just a seasonal thing or is this
5:44
Speaker 1: a transition between the two asset classes.
5:49
Speaker 3: I mean, if you look at if you look heer
5:50
Speaker 3: to date, even still bitcoin ETFs are out flowing ETH.
5:53
Speaker 3: So's if it's only the last three months that Eth
5:55
Speaker 3: is And honestly, I feel like Eith got like obliterated
5:59
Speaker 3: right going into this year, right, like things look good
6:01
Speaker 3: around the election. Everyone was bullish eth more. So it
6:04
Speaker 3: made sense that ETH would be benefit more from a
6:06
Speaker 3: Trump victory because they have a lot more concerns around
6:09
Speaker 3: DeFi and and all these things that you want to
6:11
Speaker 3: do on the blockchain, where Bitcoin kind of was like settled,
6:13
Speaker 3: it's a commodity, it's a digital store value. There wasn't
6:16
Speaker 3: a lot of regulatory concerns. So in my mind, like
6:18
Speaker 3: all this stuff is going to be very good for
6:19
Speaker 3: the likes of Eath, Salona and these other products, not
6:22
Speaker 3: necessarily Bitcoin, but Eth is the one that got hit
6:25
Speaker 3: the hardest in the end of Q one and into
6:27
Speaker 3: Q two. So yeah, I think part of this is
6:31
Speaker 3: just a catch up trade and people are trying to
6:33
Speaker 3: get exposure. And also the Eth ETFs came out too
6:36
Speaker 3: close to the Bitcoin ETFs, like there wasn't enough time
6:38
Speaker 3: for these issuers and wholesalers to talk about what this thing,
6:42
Speaker 3: come up with a narrative, and Tom Lee is one
6:44
Speaker 3: of the people pushing this narrative that it's the tokenization chains,
6:46
Speaker 3: the chain where stable coin is going to happen, and
6:49
Speaker 3: it's a chain where Wall Street is going to build
6:51
Speaker 3: their products in the back of and we're seeing some
6:53
Speaker 3: of that's now. I mean there's no offens or butts.
6:55
Speaker 3: You look at some massive asset managers, some big players
6:57
Speaker 3: in financial industry, they're trying out and building things on Ethereum.
7:01
Speaker 3: They're also testing out some other chains, but for the
7:03
Speaker 3: most part, Ethereum is the chain of choice.
7:05
Speaker 2: Yeah.
7:06
Speaker 1: A couple of ETF news items here. Canary Capital twenty
7:09
Speaker 1: one shares filing for new crypto ETFs. This one is
7:12
Speaker 1: in reference to launching on suy. So this is another
7:17
Speaker 1: chain that's been talked about here recently. When you look
7:20
Speaker 1: at that along with some of the others that have
7:22
Speaker 1: here been recently launched, is there room for this many
7:26
Speaker 1: ETFs with all these different assets coming in?
7:30
Speaker 2: What are your thoughts on that?
7:32
Speaker 3: So there is room for all these different assets to
7:35
Speaker 3: have their own ETF. Is there room for all these
7:37
Speaker 3: different assets to have ten ETFs like we have for
7:39
Speaker 3: bitcoin or ten or nine or e whatever it is
7:41
Speaker 3: for ethereum probably not right. So there's going to be
7:45
Speaker 3: a long tail of assets that are going to get
7:46
Speaker 3: crypto ETPs within the next I mean, we just had
7:49
Speaker 3: the generic listing standards to prove yesterday, but like we're
7:51
Speaker 3: going to see a whole bunch of these things, like
7:53
Speaker 3: north of one hundred products related to crypto ETPs launch
7:56
Speaker 3: in the next month. So I think there will be
7:58
Speaker 3: a lot of demand for basket type products which will
8:00
Speaker 3: hold like basically an index version. I think that will
8:03
Speaker 3: be good for advisors and then some of these other
8:05
Speaker 3: things that people are going to want to trade these
8:07
Speaker 3: things no matter what they are, right, So you could
8:09
Speaker 3: you might have just one ETF or two ets or
8:11
Speaker 3: something like suiy. You can probably have a couple more
8:13
Speaker 3: for something like xorp and soul with the way things
8:15
Speaker 3: are going right now. But you're not going to need
8:17
Speaker 3: you know, nine ETFs for some of these other longer
8:19
Speaker 3: tail assets, whether that's you know, like coin or cardano
8:23
Speaker 3: or you name it. But they're all going to have
8:24
Speaker 3: ETFs probably within the next couple months.
8:28
Speaker 1: Hey, your partner Eric came out here with the semi
8:31
Speaker 1: shock statement. They're talking about the resc the rex Ospree.
8:34
Speaker 1: This of course is of the ETF for x ORP
8:37
Speaker 1: heavy turnover in a short period of time. I think
8:39
Speaker 1: it was like ninety minutes at the time he tweeted.
8:41
Speaker 1: This is this thing still tracking at this.
8:44
Speaker 2: Kind of growth right now? Have you looked at the
8:46
Speaker 2: most recent numbers.
8:47
Speaker 3: I haven't looked in a little while. But it did
8:49
Speaker 3: slow down a little bit after initial opening, but it's
8:51
Speaker 3: happening an extremely strong day. Like it's a very strong
8:53
Speaker 3: launch for a product. So these products, so the screenshet
8:57
Speaker 3: you had up before with with this, this this general
9:00
Speaker 3: listening standards approval. It's related to this in a way.
9:03
Speaker 3: So the product you were just showing fits into the
9:06
Speaker 3: nineteen forty ACT wrapper. And what that does is there
9:10
Speaker 3: was a generic listening centers that were created for products
9:12
Speaker 3: that fit into the nineteen forty ACT. I don't want
9:14
Speaker 3: to get too far in the weeds, but essentially that
9:16
Speaker 3: was a generic listing center. So that's why those future
9:18
Speaker 3: products were able to launch after seventy five days after
9:20
Speaker 3: filling your perspectus. That's rex Osprey basically forced Solana XRP
9:24
Speaker 3: doge into that forty ACT rapper with like regulatory and
9:27
Speaker 3: legal workarounds, and they were able to launch because the
9:29
Speaker 3: SEC couldn't stop it because it fit the rules exactly.
9:31
Speaker 3: And so part of this what's happened with those generic
9:34
Speaker 3: listening standards is basically like now, even the pure spot products,
9:37
Speaker 3: the ones that usually have to go through that nineteen
9:39
Speaker 3: before process that I've talked about many many times, it's
9:42
Speaker 3: like a two hundred and sixty day long process. You're
9:43
Speaker 3: going back and forth with the SEC that there are delays,
9:45
Speaker 3: there's denials. That's going to be gone now with this
9:48
Speaker 3: generic Listening center. So basically the pure spot products that
9:50
Speaker 3: are going to hold nothing but the spot underlying asset
9:53
Speaker 3: are going to have the same sort of streamline process.
9:56
Speaker 3: They only need to get the perspectives approved. Usually you
9:59
Speaker 3: had to go through another DIVISI known as division or
10:00
Speaker 3: training in markets to get your nineteen before approved, which
10:03
Speaker 3: is like requesting a rule change, and you would have
10:04
Speaker 3: had to do that for every asset under the sun
10:06
Speaker 3: that was coming with this sort of wrapper. And I
10:08
Speaker 3: think the SEC was like, one, we should have had
10:10
Speaker 3: a streamline process from the get go. We should have
10:13
Speaker 3: done this already. And two, I mean, we don't want
10:17
Speaker 3: to be issuing twenty thirty forty page reports approving every
10:20
Speaker 3: single product that's trying to list a new crypto asset,
10:22
Speaker 3: Like that's just not something they're trying to do well.
10:26
Speaker 1: And I think this is good in the sense that
10:28
Speaker 1: we are going to maybe simplify things around ETFs.
10:31
Speaker 2: I'm just curious when you look.
10:33
Speaker 1: At the appetite because it is a shift right now
10:35
Speaker 1: in terms of the investor. We're talking to more and
10:38
Speaker 1: more structured capital, but also high networth individuals that are
10:41
Speaker 1: looking at these ETFs as real opportunities for growth. So
10:45
Speaker 1: there could be a big market here. So you and
10:48
Speaker 1: Eric are going to be very busy in the coming
10:50
Speaker 1: months and years.
10:51
Speaker 3: It looks like, yeah, there's yeah. I would say like
10:54
Speaker 3: I said, I think the index products are going to
10:56
Speaker 3: be huge for the advisors and people who like don't
10:58
Speaker 3: want to necessarily actively pick, like this protocol is going
11:01
Speaker 3: to be better than this one. It might be something like, oh,
11:03
Speaker 3: I'll throw some in bitcoin and then ethan then maybe
11:05
Speaker 3: like a basket product or something along those lines. So
11:08
Speaker 3: how much demand is actually going to be there for
11:10
Speaker 3: all of these I mean, I don't I can't see
11:12
Speaker 3: the future, but it's going to be less than what
11:14
Speaker 3: we saw for the Bitcoin ETFs, which are the best
11:16
Speaker 3: ETF launch of all time, and ironically enough, now a
11:19
Speaker 3: month and a year and change into the Etherey METF launches,
11:22
Speaker 3: those are I shares as etha the Etherory METF one
11:27
Speaker 3: of the second second best launches of all time. So
11:30
Speaker 3: I mean, I don't know if this is going to
11:31
Speaker 3: continue down the line for the next crypto acids to come,
11:33
Speaker 3: I probably say no, but this this category is going
11:36
Speaker 3: to grow tremendously, is our vue?
11:38
Speaker 2: Yeah, without a doubt.
11:40
Speaker 1: Hey, listen, yesterday we had the FOMC meeting, Bianco's on
11:44
Speaker 1: here basically saying this was a shambles in terms of
11:48
Speaker 1: just the situation where one, you know, the fat is
11:52
Speaker 1: really challenged with a very difficult position right now with
11:55
Speaker 1: what seems to be rising inflation, and also the job
11:58
Speaker 1: situation that continues to be in a position when you
12:01
Speaker 1: look at just Wall Street in general and their perception
12:04
Speaker 1: of how Powell handled this with a twenty five basis
12:08
Speaker 1: point cut and looking to what could be another couple
12:13
Speaker 1: of cuts even though he said more than zero, but
12:15
Speaker 1: that could also mean one going into the rest of
12:18
Speaker 1: this year. What is your feeling of how Wall Street
12:21
Speaker 1: is taking this, because obviously the markets are up all
12:24
Speaker 1: that good stuff. I went to your tweet. This was
12:27
Speaker 1: one in reference to a favor of a fifty basis point.
12:30
Speaker 1: So I mean you're out there working at it, so
12:33
Speaker 1: you tell me, yeah.
12:35
Speaker 3: I mean so, I actually sit right next to our
12:37
Speaker 3: rage strategists, so two of them they cover this, and
12:39
Speaker 3: they were saying the same similar things to what Bianca
12:41
Speaker 3: was saying. That this was like kind of all over
12:42
Speaker 3: the place. It was you could obviously point out Moran
12:46
Speaker 3: on the dot plot that he was calling for a
12:48
Speaker 3: fifty base cut in a descent. There was somebody that
12:50
Speaker 3: basically wanted to stay flat or technically I think it
12:53
Speaker 3: looked like a hike on the dot plot. So things
12:55
Speaker 3: are all over the place. And I think that's also
12:56
Speaker 3: because like some of the readings are all over the
12:58
Speaker 3: place right inflation, people are earned, some are concerns, some
13:01
Speaker 3: are less concerned about whether or not the tariffs are
13:03
Speaker 3: going to have a long lasting impact or it's going
13:05
Speaker 3: to be transitory, if you will. So I think things
13:08
Speaker 3: are all over the place. And if you just look
13:09
Speaker 3: at like the inter day pricing on you know, yields
13:12
Speaker 3: and even the S and P five hundred than Nasdaq
13:13
Speaker 3: one hundred. During house press, I mean things were shooting
13:17
Speaker 3: up and shooting down. It was just like the more
13:19
Speaker 3: he sent kind of signaled that we were going to
13:20
Speaker 3: get a couple more cuts. It drove everything. And but
13:23
Speaker 3: I will say, our rage strategists think two more this year,
13:25
Speaker 3: two more fifty base two more twenty five bases point cuts.
13:28
Speaker 3: So for fifty total is their expectation right now and
13:31
Speaker 3: was their expectation going into this so so farther in line.
13:34
Speaker 3: But yeah, I won't pretend to be an economist or
13:36
Speaker 3: a rage strategist, so but I do sit next to them.
13:40
Speaker 1: Okay, hey, I want to play a clip for our audience.
13:43
Speaker 1: This is more around what does this look like economically
13:46
Speaker 1: as we start to see these cuts going into the
13:48
Speaker 1: end of the year.
13:49
Speaker 2: Let me go to saw too.
13:51
Speaker 5: I think the market knows there's another east coming, could
13:53
Speaker 5: be two more east coming. You know when they eased
13:55
Speaker 5: after long term capital and then they used to get
13:57
Speaker 5: into Y two K. I mean, we weren't in a
13:59
Speaker 5: bad economy. Then the market went a little bit nuts.
14:01
Speaker 5: I'm not saying the market is going to be nuts now,
14:03
Speaker 5: but and by the way the other side of that
14:06
Speaker 5: was a disaster.
14:07
Speaker 3: But are you Are you excited about the stock market
14:10
Speaker 3: for the next couple of years.
14:11
Speaker 5: I'm look excited. I'm constructed because of the easing right now,
14:16
Speaker 5: but I'm also miserable because of the levels. Does that
14:20
Speaker 5: make sense, all right?
14:22
Speaker 1: So basically, you know, he's talking about a little bit
14:26
Speaker 1: over indulgence here, and you look at credit card depth
14:29
Speaker 1: piling up. This is definitely serious for a lot of Americans,
14:34
Speaker 1: and with that along with high prices. Now the Fed's
14:37
Speaker 1: going over here and cutting. Everybody's worried about this. Even
14:41
Speaker 1: Peter Schiff came on and said, hey, look here, I
14:43
Speaker 1: told you so, we're getting ready to get a money
14:45
Speaker 1: printer engaged again. How do you think this plays out
14:49
Speaker 1: into twenty twenty six if we do get two more cuts,
14:53
Speaker 1: is there a market correction coming down the pipeline?
14:57
Speaker 3: Yeah, I mean, I can't pretend to to see the future,
15:00
Speaker 3: but right now, obviously the market is expecting those two
15:03
Speaker 3: more cuts, more liquidity, more easy, and obviously that's theoretically
15:08
Speaker 3: good for risk assets. I mean, the risk here is
15:10
Speaker 3: is obviously inflation. Tepper seems very pulled up. And then
15:14
Speaker 3: your term I think he's just worried about the other
15:17
Speaker 3: side of what happens what you're asking, and yeah, I
15:19
Speaker 3: don't know. We're we're getting close to the end of
15:21
Speaker 3: the year here, we only have three and change more months.
15:24
Speaker 3: So well, I'm yeah, this is a little bit out
15:28
Speaker 3: of my wheelhouse, I guess, I would say, but it's
15:31
Speaker 3: it certainly looks relatively positive from that.
15:35
Speaker 1: Interesting, All right, Well, well, I think the key here
15:38
Speaker 1: too is if the jobs numbers can get you know,
15:40
Speaker 1: normalized as we go into it, if businesses actually take
15:43
Speaker 1: advantage of this, this will have some impact on mortgage rate,
15:46
Speaker 1: car loans, If businesses, you know, get engaged again in
15:50
Speaker 1: hiring people, maybe on the flip side for you know,
15:53
Speaker 1: Q one two for twenty twenty six, we could see
15:55
Speaker 1: some positive things.
15:56
Speaker 2: Good thing is eachs will be right there back in
15:59
Speaker 2: the day.
15:59
Speaker 3: Yeah, yeah, exactly. And the other thing I would say
16:02
Speaker 3: is like, but there's been a bunch of studies out
16:03
Speaker 3: now that like the top ten percent of income earners
16:05
Speaker 3: are like the ones driving all of the spending exactly,
16:08
Speaker 3: and the sock market returns, and you know, that's that's
16:11
Speaker 3: kind of way the way the market been has gone recently,
16:14
Speaker 3: and Also, the thing I would say is like higher
16:16
Speaker 3: rates were actually kind of a boon for anyone who
16:18
Speaker 3: had a lot of money.
16:19
Speaker 2: Like the yes, the.
16:20
Speaker 3: Assets didn't get hit nearly as hard as most people
16:22
Speaker 3: expected them to, and and all of a sudden, so
16:24
Speaker 3: you're you're at all time highs and you're earning more
16:26
Speaker 3: interests than you've earned in you know, a couple decades,
16:29
Speaker 3: and things feel pretty good. If you're one of those
16:31
Speaker 3: people that's sitting on enough assets to talking about.
16:34
Speaker 1: Seven and a half trillion in money market, I'm kind
16:36
Speaker 1: of curious if we start to see some deployment of
16:38
Speaker 1: that capital as we start to see the rates edge down.
16:41
Speaker 1: That'll be interesting, especially into December, because that'll be a
16:45
Speaker 1: hard decision to make. Is redeploying capital at the end
16:48
Speaker 1: of the year big deal for sure?
16:50
Speaker 3: Yeah, I mean yeah, I think the number is it's
16:53
Speaker 3: just shy of seven a half seven point three seven
16:54
Speaker 3: point four trillion, roughly. A lot of that is fixed, right,
16:58
Speaker 3: That stuff's not going to go anywhere, But there is
17:00
Speaker 3: a chunk of that, maybe be a trillion that could
17:02
Speaker 3: come out and go somewhere else. So people like to say, oh,
17:04
Speaker 3: it's all money on the sidelines. The vast majority of
17:07
Speaker 3: that isn't going anywhere. Even if you look back to
17:08
Speaker 3: two thousand and eight when we had issues with potential
17:10
Speaker 3: money market concerns, breaking the buck and stuff like, they
17:12
Speaker 3: didn't see that much in outflows. But when you go
17:15
Speaker 3: to zero percent, it's certainly a lot less comparatively speaking,
17:19
Speaker 3: a lot less interesting or intriguing when you're looking at
17:21
Speaker 3: comparing it to other risk assets, particularly as rates are falling. So,
17:24
Speaker 3: I mean, that's what it is supposed to do, right,
17:26
Speaker 3: That's kind of what the FED is hoping people will do.
17:28
Speaker 3: They'll take money out of those assets and put them
17:30
Speaker 3: towards risk assets and prop up the economy in very
17:33
Speaker 3: different ways.
17:34
Speaker 2: Well, here we go, James.
17:35
Speaker 1: It has been good having you back on the show.
17:37
Speaker 1: Thank you so much for stopping in. I love to
17:39
Speaker 1: get your take on where the ETF heartbeat is with
17:42
Speaker 1: you and Eric, so great job you guys are doing
17:45
Speaker 1: up there.
17:45
Speaker 2: But thanks again for stopping it.
17:47
Speaker 3: Yeah, thanks for having me, Paul, This is fun.
17:49
Speaker 2: You bet all right?
17:50
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17:51
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18:01
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18:04
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18:06
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18:09
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18:11
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