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| CRYPTO V |
to have you with us you know at some point in time there was tal about more and more companies on the s p 500 potentially putting bitcoin on the balance sheet and that seems like that is is done i mean that's just a pipe dream at this point um what what's the ripple effect in your view of this what kind of ripple effects will we see with bitcoin being where it is no absolutely look i think we're operating.
in a really new environment um 50 of the s p 500 is down over 50 since the start of the year investors are de-risking across the board while the fundamentals of many businesses like coinbase and our business coin shares are quite sound um price to earnings ratios are very healthy i think investors generally are very wary of risk they're de-risking across their portfolio they're trying to stem the bleeding and so we're seeing a.
sell-off we're seeing concerns around this downturn i think many investors do use uh crypto public companies as a proxy for exposure to bitcoin ethan the crypto market overall so we generally do see high correlations between crypto related equities and crypto markets um that being said i think many of the concerns around microstrategy and the bitcoin exposure on its balance sheet um are are somewhat overblown um they do have some very minimal amount of leverage i think there's been extensive.
coverage on the topic but i do think because we've always highlighted bitcoin and crypto assets have historically been volatile we're seeing higher highs also higher lows but these assets you know they're not cash they're not cash equivalents and in the current environment i think the market is pricing a preference for free cash flow and cash on balance sheet hey hey melton um it's dan you and i were talking earlier in the week and you were mentioning despite some of the weakness that we've seen in some of the.
major coins in bitcoin obviously um and eth in particular here you're seeing some data where you're seeing institutional inflows into other products here talk to us a little bit about that because i know that's a really important pillar of the bulk case here absolutely look i think it's always really interesting um obviously the narrative right now we've seen crypto market clap cap hard and decline significantly by about a third over the last week or so so clearly there's there's concern we've seen events like.
this before albeit not at this rapid pace the volatility and the velocity i think in all markets is feeling like it's increased quite a bit um but one of the interesting things we track is since we're in the business of asset management we track product flows we issue weekly fund flows report and interestingly last week even though bitcoin saw 15 price decline there were net inflows into bitcoin products around45 million dollars of net inflows and global aum of bitcoin products the end of last week still stood at 30 billion.
around 50 billion across all crypto products so again i think investors are sitting by opportunistically there are investors who are looking to add crypto exposure you know one to four percent allocation is historically what we've uh we've advised with quarterly rebalancing so i do think there are buyers who are looking to add now will those positions be massive size possibly not but i do think there are buyers who are looking at this opportunity as an opportunity to accumulate a dca or dollar cost average in to position particularly in assets like bitcoin ether and others malcolm good to see you thank you for.
your time of course melton de meuris of coin shares guy you've talked to michael saylor the ceo of um of microstrategy many times and so i'm wondering what your take is on on this exposure now that it's to the downtown of the bitcoins on the downside i don't want to speak for michael i'll say this knowing him i don't think he's going to waver from his view my sense i in a week or two from now you'll find that microstrategy has probably ontinued to add bitcoin to their balance sheet you know i don't think he.
again i'm not speaking for him just in mind you know knowing being familiar i don't think he's focused on the 10 15 000 moves he's obviously in this for not the next five minutes for the next five years with that said quickly about bitcoin i tweeted it earlier i don't think it's coincidence that bitcoin topped out around the same time this fed became responsible late in november because i think bitcoin was born out of the fact that central banks are running amok and now that they're trying to get their act.
together bitcoin and crypto's been cut in half the trigger for bitcoin to go higher again in my opinion if for whatever reason this fed blinks be it market uh reasons or otherwise i think bitcoin goes parabolically higher well that's dan why you bought a lot of crypto today right not a lot but you bought crypto today because the high correlation the correlation between bitcoin and the nasdaq is at an all-time high yeah so that's the same thing when i think of some of these smart contracts like ethan.
and solana i i think of them as like maybe a high growth um high valuation nasdaq sort of stock that there's like ecosystems being built around them that's how i think about it from an allocation standpoint and i just think they've come in so far and i haven't bought any in a very long time i just think that again i think melton just said it dollar cost averaging none of us are going to know where that bottom is so you start small and you kind of work your way into it and you have that thesis and you stick with it yeah karen.
you adding to uh your holdings in the top drawer that you've got in bitcoin in the drawer that no no definitely not leave it there see what happens and tim um like it might be more the middle drawer for me um i you know i think you've got a case where this is the kind of pullback that every institution who wanted to own this six nine and twelve months ago has been waiting for i do think institutional adoptions is is certainly coming more than we've actually seen it leave and i think you actually have a.
case where the regulators finally have a lot more to go i also think the biggest banks in the world and i think the federal reserve and central banks globally have adopted digital currencies and crypto and blockchain that's only good for the asset class it's just a terrible time for risk you
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