WEBVTT - Anthony Scaramucci Talks Bitcoin ETF

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news joining.

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<v Speaker 2>Us now to talk about this ETF. I'm thrilled to

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<v Speaker 2>say we have Anthony Scaramucci. He is the founder of

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<v Speaker 2>Skybridge Capital, joining us on set. Great to see you

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<v Speaker 2>in person.

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<v Speaker 3>I mean it's Eric.

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<v Speaker 4>I mean that I was almost as good as my

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<v Speaker 4>mother writing the thing.

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<v Speaker 3>I mean that was really good.

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<v Speaker 2>He does his homework and we have a lot of

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<v Speaker 2>questions for you about the crypto industry at large, but

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<v Speaker 2>we are going to start with this product because, as

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<v Speaker 2>Eric described it, this is sort of a thematic crypto

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<v Speaker 2>ETF that tracks equities. And you do have a lot

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<v Speaker 2>of these sort of products out there that say that

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<v Speaker 2>they track the digital asset ecosystem and that are also

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<v Speaker 2>actively managed. So how do you differentiate this product from

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<v Speaker 2>the rest of the field.

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<v Speaker 4>Well, first all, thank you guys for having me and

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<v Speaker 4>I appreciate being here. I would just say to you

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<v Speaker 4>that this was born from a non bitcoin exchange traded

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<v Speaker 4>fund world.

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<v Speaker 3>So I remember this is four years ago.

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<v Speaker 4>I'm trying to get our clients access to something that

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<v Speaker 4>correlate with bitcoin. I would make the case that there

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<v Speaker 4>are still clients out there, particularly at these wirehouses that

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<v Speaker 4>are having a hard time getting approval on bitcoin still

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<v Speaker 4>to this day. And so the case for this is

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<v Speaker 4>this is a good surrogate. If you want to be

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<v Speaker 4>in bitcoin, certainly go out and buy bitcoin. If you

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<v Speaker 4>can buy the bitcoin shares, whether it's the Fidelity ones

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<v Speaker 4>or Galaxy Invesco or the black Rock one certainly would

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<v Speaker 4>recommend that. But if you can't do that, and you

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<v Speaker 4>want some exposure to the ecosystem, and you want some

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<v Speaker 4>exposure to great companies inside the ecosystem, I think we

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<v Speaker 4>have the best story to tell and arguably the best performance,

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<v Speaker 4>if you don't mind me saying that, Just based on

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<v Speaker 4>the metrics that Bloomberg is showing and looking at.

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<v Speaker 5>The holdings, you have two US companies as the biggest

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<v Speaker 5>holdings of micro Strategy and coin Base. But then you've

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<v Speaker 5>got Galaxy Digital, which is listening in Toronto, and Metaplanet,

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<v Speaker 5>which trades in Japan, so you now have currency exposure

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<v Speaker 5>as well.

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<v Speaker 4>Why go this route, Well, because again the Metaplanet is

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<v Speaker 4>sort of a pure play in bitcoin, and so even

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<v Speaker 4>though we have modestncy explosure, we like that. I guess

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<v Speaker 4>if you look at that list, I think the thing

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<v Speaker 4>that our investment managers are saying, it's Skybridge, what's going

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<v Speaker 4>to get us the most correlation to bitcoin without taking

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<v Speaker 4>on too much exogenous risk. So the currency and the

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<v Speaker 4>sizing of that is not overly consequential to us as

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<v Speaker 4>it release to Galaxy. I think, you know this, Galaxy

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<v Speaker 4>is about to list on the NASDAC and so I

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<v Speaker 4>think that'll be helpful there. But we're big fans of

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<v Speaker 4>Mike Novograt's work with Mike at Goldman thirty years ago

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<v Speaker 4>and like that company overall. So the brokerage component of

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<v Speaker 4>this I think does help Coinbase and Galaxy or companies

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<v Speaker 4>that we think are highway systems in the world of

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<v Speaker 4>digital assets. So it's not just a pure play on

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<v Speaker 4>the assets themselves. You're getting a little pickup on the infrastructure.

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<v Speaker 1>Let's talk a little bit about like the future and

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<v Speaker 1>where Bitcoin's going. I was on stage with Robbie Michnick

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<v Speaker 1>in Dubai. He said when the decoupling happened that day

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<v Speaker 1>where bitcoin went up and the stocks went down, there was.

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<v Speaker 3>A couple like that was major.

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<v Speaker 1>He got calls from some big fish and they were like,

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<v Speaker 1>finally it's acting like gold. How important is bitcoin to

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<v Speaker 1>behave a little better and not be a high beta

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<v Speaker 1>stock for it to really take go to the next

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<v Speaker 1>level with corporations, governments, and institutions.

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<v Speaker 3>Well, I think that's it. Eric.

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<v Speaker 4>Ultimately, what we see is the evolution of bitcoin from

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<v Speaker 4>being sort of a tech asset tied to the mag

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<v Speaker 4>seven or tied to the Nasdaq, to something that's more akin.

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<v Speaker 3>To digital gold.

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<v Speaker 4>And as that starts to happen, and I think that

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<v Speaker 4>will happen as wallets expand you know, let's say there's

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<v Speaker 4>roughly three hundred million or so wallets or bitcoin right now.

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<v Speaker 4>Imagine a world where there's a billion wallets, billion holders.

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<v Speaker 3>The volatility should dampen.

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<v Speaker 4>That happened in Microsoft, that happened in things like Google

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<v Speaker 4>over a twenty year period of time, and so you

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<v Speaker 4>could see a scenario where more wallets, lots of institutions

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<v Speaker 4>in the mix, long term holders, dampening volatility, and then

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<v Speaker 4>you have this positive flywheel where the volatility is dampened

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<v Speaker 4>by long term holders who are owning it in size,

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<v Speaker 4>and so therefore that reinforces.

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<v Speaker 3>The idea that other long term holders should come in.

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<v Speaker 4>I guess the big thing you have to ask yourself

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<v Speaker 4>is bitcoin an investment or is it an asset class.

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<v Speaker 4>If it's an investment, then one to three trillion dollars,

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<v Speaker 4>that sort of makes sense.

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<v Speaker 3>That's akin to a.

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<v Speaker 4>Mag seven market capitalization. But if it's an asset class,

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<v Speaker 4>then it should trade too closer to where gold is,

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<v Speaker 4>and I think goals I don't know twenty two to

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<v Speaker 4>twenty three trillion dollars right now.

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<v Speaker 2>I do want to bring in politics and regulation to

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<v Speaker 2>this conversation because there's stable coin legislation working its way

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<v Speaker 2>through Congress right now, and I want to hear your

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<v Speaker 2>thoughts on why that potentially is important and whether or

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<v Speaker 2>not that should include restrictions on the Trump family and

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<v Speaker 2>the administration broadly.

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<v Speaker 4>Well, I don't know if you can restrict one family,

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<v Speaker 4>and so I don't know what the laws are even

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<v Speaker 4>if that's allowable in the constant. But I just I

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<v Speaker 4>think what we have to do is we've got to

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<v Speaker 4>get stable coined legislation through because it'll help the digital

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<v Speaker 4>assets space, it'll help the United States maintain its mantle

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<v Speaker 4>of financial leadership financial services leadership. But I think the

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<v Speaker 4>other thing these stable coins do it just reminder to people,

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<v Speaker 4>whether it's circle or tether, they own a ton of

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<v Speaker 4>US treasuries. I think tether now owns more US treasuries

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<v Speaker 4>than Germany and Japan, and I think we want to

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<v Speaker 4>have this legislation provide great clarity regulatory specificity, so that.

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<v Speaker 3>We've got a lot of players in the mix.

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<v Speaker 4>Eventually banks can get into the mix, and eventually I

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<v Speaker 4>could hold my bitcoin at a bank. As it relates

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<v Speaker 4>to the Trump family, I guess what I would say.

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<v Speaker 4>My message to the Trump family would be, you know,

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<v Speaker 4>be transparent.

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<v Speaker 3>You know, if you're not doing anything wrong.

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<v Speaker 4>I'll accept on faith that you're not doing anything wrong,

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<v Speaker 4>but be transparent because we're in a partisan, tribal environment

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<v Speaker 4>and you've got to let people know exactly what you're doing.

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<v Speaker 4>Otherwise people are going to assume the worst.

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<v Speaker 5>A lot of people, some in the industry, who are

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<v Speaker 5>concerned that the First family's involvement in crypto is a

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<v Speaker 5>way to just make money. What is your level of

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<v Speaker 5>confidence that this administration, both at the executive and regulatory level,

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<v Speaker 5>is serious about supporting the build out of the US

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<v Speaker 5>crypto industry.

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<v Speaker 3>Well, I think it's very serious.

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<v Speaker 4>I think this is the thing that a lot of

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<v Speaker 4>the what we call the crypto bros.

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<v Speaker 3>If you will.

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<v Speaker 4>There's probably women in there, but let's call them crypto bros.

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<v Speaker 4>I think they moved into fair Shake and they gave

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<v Speaker 4>a lot of money to Republicans or some Democrats that

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<v Speaker 4>are supportive, and I think in the beginning I would

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<v Speaker 4>say it was skeptical and probably politically driven. But I

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<v Speaker 4>think as people learn the story, they recognize that this

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<v Speaker 4>is going to be a large component of the future

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<v Speaker 4>of finance, and so I do think it's serious today.

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<v Speaker 4>Was it serious in July of last year when they

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<v Speaker 4>spoke at the Bitcoin conference? Probably not. It was probably political,

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<v Speaker 4>But I think it's serious today.

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<v Speaker 1>Okay, forty five seconds. You obviously are into bitcoin and

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<v Speaker 1>of the all coins excite you. We're going to see

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<v Speaker 1>ets for XRP, salona Ether.

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<v Speaker 3>People can have a lot of choice. What do you

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<v Speaker 3>think about it?

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<v Speaker 4>Well, I would I would I would focus on Solana

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<v Speaker 4>for right now because you have an ETF out there.

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<v Speaker 3>It's soul Q so O l Q.

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<v Speaker 4>Those guys at three IQ were the first to launch

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<v Speaker 4>a bitcoin ETF in North America, the first Canadian ETF.

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<v Speaker 3>We own a lot of Solana.

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<v Speaker 4>Just full disclosure, uh, but and we are and again

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<v Speaker 4>full disclosure. We at Skybridge are investors in sol Q

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<v Speaker 4>because we like that exposure. We also like the staking

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<v Speaker 4>component to Solana, which you think is very good.

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<v Speaker 3>So it's just a great way to get in there.

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<v Speaker 3>Those other ones are going to.

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<v Speaker 4>Be good Avalanche, Polka Dot, et cetera, but Solana.

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<v Speaker 2>All right, gotta leave it there. Really appreciate you taking

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<v Speaker 2>the time. That is Anthony's Cherimuci of Skybridge cap Well.

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<v Speaker 2>You can read about this drill down plus the latest

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<v Speaker 2>in the ETF industry when you subscribe to my weekly

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<v Speaker 2>etf IQ newsletter. But that does it for us. This

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<v Speaker 2>is Bloomberg