1/ investing in bitcoin has historically been limited to passive exposure (long BTC)
yesterday, @viridifunds launched $RIGZ, the first publicly listed crypto mining ETF
as the bitcoin industry grows, so do opportunities to invest along the bitcoin value chain 👇
let's dive in!
2/ before bitcoin, i worked in the oil & gas industry.
investors who want exposure to oil & gas in their portfolio don't just buy contracts for WTI crude or nat gas.
they buy a diversified portfolio of companies and commodities across the oil and gas value chain
3/ an E&P company can produce oil at a lower cost than they sell it, and investors can realize significantly more upside than holding just the underlying commodity, oil
a refining company that converts crude into product and retails it can extract higher margins
4/ similarly, companies are starting to emerge along different parts of the bitcoin value chain
for example, my company @CoinSharesCo ($CS.ST) creates bitcoin-based financial products and services. so does @coinbase ($COIN).
miners are like E&P companies - they "produce" $BTC
5/ now, to "produce" bitcoin, you need
🖥️ a specialized semiconductor (ASIC)
⚡️ electricity
per the the economics of bitcoin 👇the real competitive edge is lowering the cost of "producing" bitcoin by (a) reducing the capex drag of hardware and (b) securing the lowest cost power
6/ $RIGZ is an actively managed ETF, with a mandate is to invest in semiconductor and ASIC companies and crypto mining operators who are getting the majority of their power from "clean energy" or renewable power sources
you may be confused 😕 isn't bitcoin boiling the ocean?
7/ interestingly, over 50% of north american bitcoin mining is done with renewable energy 🌿
note the current US energy grid only utilizes 19% renewables 😢
that makes bitcoin mining one of the greenest industries in north america, and a great sector for this type of product!
8/ as one of the world's largest digital asset managers, @CoinSharesCo is proud to be Viridi's lead investor, and to continue to expand the universe of crypto investment products with innovative partners like @ViridiFunds, @3iq_corp, and @InvescoEMEA
9/ for more detail on $RIGZ, see the link below!
disclosure: this is not financial advice, DYOR. CoinShares is an investor in Viridi, and an advisor to the management company. i personally own $RIGZ.
1/ quick notes and data points from the discussion @kellyjgreer and i had at @PubKey_NYC last night
'tis the season of the most hated rally - bitcoin is ripping and macro folks are not happy about it
jamie dimon and elizabeth warren seem especially mad 😠 max cope incoming
2/ bitcoin pricing is driven by FLOWS
it's tempting to get lost in piles of analysis but as we'll discuss later on, the key to understanding is looking at open positions, trade volume, inflows and outflows
sentiment doesn't matter until it's expressed as a trade
3/ bitcoin is highly reflexive
i had a moment of enlightenment a few years back. i used to believe narrative -> sentiment -> flows -> price but it's really much simpler
price drives action
this is what @saylor $MSTR has perfected. buy, price goes up, follow with narrative
1/ a short summary of a recent talk on silicon, satoshis, and superpowers
power in our world is changing. a decade ago, oil and gas companies and banks ruled markets. now it's tech companies and financialization runs rampant (>100x P/E ratios etc)
2/ as our lives become increasingly digitized, value creation is happening on a new frontier, and a handful of industries and companies are well positioned to capitalize on this shift
3/ this is also impacting the geopolitical landscape. we live in a multipolar world, and power has historically been dependent on the ability of a nation to secure access to natural resources, namely oil
1/ thanks to @farokh and the @RugRadio community for having me on the show today! i enjoyed discussing NFT market structure and why i don't care for utility or roadmaps with my JPEGs 🙅♀️
2/ blog post on NFT market microstructure and how it may evolve over time - don't worry, u will be able to explain market microstructure if u just skim it lightly
bonus: you can collect the post as an NFT if you are so inclined, thanks to @viamirror