WEBVTT - X Super-App Changes and the Race to a Bitcoin ETF 0:00:01.400 --> 0:00:05.080 From Marhart. We're Innovation of Money and Power Collie in 0:00:05.200 --> 0:00:10.120 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.160 --> 0:00:11.080 and Ed Ludlow. 0:00:25.280 --> 0:00:28.320 I'm Ed Lovelow here in San Francisco. Caroline hides off today. 0:00:28.360 --> 0:00:31.040 This is Blueberg Technology coming up on the program and 0:00:31.080 --> 0:00:33.879 Elon must bid to make X and Everything app. The 0:00:33.920 --> 0:00:38.520 company's changing its policies to expand data collection while offering 0:00:38.520 --> 0:00:40.880 an array of new features. Will break down exactly what's 0:00:40.960 --> 0:00:44.360 changed overnight for the social media company. Plus full earnings 0:00:44.360 --> 0:00:48.280 coverage Ahead will break down results from Salesforce, CrowdStrike, and Octa, 0:00:48.360 --> 0:00:51.800 where CEO Tom McKinnon will join us for an exclusive conversation, 0:00:52.320 --> 0:00:55.560 and the race for the first Bitcoin etf Who's going 0:00:55.640 --> 0:00:58.120 to win? We're going to discuss with one firm buying 0:00:58.160 --> 0:01:01.400 for that title. Bit Wise CEO Hougan joins us to 0:01:01.480 --> 0:01:03.920 weigh in. Right to our top story and back to 0:01:04.280 --> 0:01:07.200 X planning to collect biometric data from users. 0:01:07.440 --> 0:01:09.560 So how are they getting it and just how or 0:01:09.600 --> 0:01:09.960 they use it? 0:01:10.040 --> 0:01:12.319 Let's break it all down with Bloomberg's ashe accounts who 0:01:12.319 --> 0:01:13.520 reported on the story over night. 0:01:13.600 --> 0:01:15.000 Let's start with the new policy. 0:01:15.520 --> 0:01:18.000 What is it that you noticed X is doing differently 0:01:18.160 --> 0:01:20.440 in terms of which data is being collected. 0:01:20.640 --> 0:01:22.560 Well, if you look at their postily added in this 0:01:22.640 --> 0:01:25.560 section about biometric data. Now, in actual policily, they don't 0:01:25.600 --> 0:01:27.480 go into what that means. But from what we've seen 0:01:27.520 --> 0:01:29.920 other companies do, we know that it means things like 0:01:29.959 --> 0:01:33.480 fingerprints or iris scans or facial images. And so they, 0:01:33.640 --> 0:01:37.200 based on your consent, will start collecting that data if 0:01:37.240 --> 0:01:38.080 you allow them to. 0:01:38.240 --> 0:01:41.040 There's also i think jobs data, right, jobs data and 0:01:41.560 --> 0:01:43.960 education as well. So you and I had the same 0:01:44.040 --> 0:01:46.920 question straight away, which was how do they collect this 0:01:47.000 --> 0:01:49.360 biometric data? So I asked X and this is what 0:01:49.400 --> 0:01:51.960 they told us, mister director, if we can bring up 0:01:52.000 --> 0:01:55.440 their statement to us on the screen, basically two ways 0:01:55.920 --> 0:01:58.400 you have the option to issue them a government issued 0:01:58.440 --> 0:02:01.480 ID and take a self as sort of a two 0:02:01.520 --> 0:02:05.200 stage verification. What do you make of the process that 0:02:05.240 --> 0:02:06.440 they outlined. 0:02:06.240 --> 0:02:07.880 You know, it sort of fits in line with what 0:02:08.000 --> 0:02:09.679 Musk has said, right. One of the things he talked 0:02:09.720 --> 0:02:12.360 about when he changed the whole verification process was like, 0:02:12.400 --> 0:02:15.360 there's too many bots and spam and fake accounts, and 0:02:15.400 --> 0:02:17.440 so if you think about it being able to upload 0:02:17.440 --> 0:02:19.280 your government ID and then a picture is a much 0:02:19.320 --> 0:02:22.880 more robust verification process because up until now all they 0:02:22.919 --> 0:02:24.959 really did was ask people to have a verified phone 0:02:25.000 --> 0:02:27.480 number and then a display photo, which you know, you can. 0:02:27.320 --> 0:02:29.160 Sort of game that system a bit. So it falls 0:02:29.160 --> 0:02:29.600 in line. 0:02:29.480 --> 0:02:31.240 With that, and what they're saying to us in this 0:02:31.320 --> 0:02:34.600 statement is that, you know, impersonation is still an issue 0:02:34.600 --> 0:02:37.200 on the platform. There are a couple of Ed Ludlow's 0:02:37.200 --> 0:02:40.400 floating around that are not me. They've since been taken down, 0:02:40.600 --> 0:02:42.240 but they think that it will deal with that. 0:02:42.520 --> 0:02:43.720 Wasn't the only piece of news. 0:02:43.800 --> 0:02:47.639 Musk kind of followed up afterwards to say there will 0:02:47.680 --> 0:02:51.040 be an offer of video and audio calling, but without 0:02:51.280 --> 0:02:52.919 having to submit a cell phone number. 0:02:53.160 --> 0:02:54.960 What was the new stuff there? 0:02:55.400 --> 0:02:57.960 It's part of this whole idea of the everything app right. 0:02:58.000 --> 0:03:00.639 He's been very vocal about we want more video, more audio, 0:03:00.720 --> 0:03:02.640 like we want people to come to X and do everything, 0:03:02.880 --> 0:03:04.400 and so this seems like a play on that and 0:03:04.440 --> 0:03:06.280 not having to use a phone number. You just get 0:03:06.320 --> 0:03:07.800 on it and you can sort of chat with people. 0:03:07.800 --> 0:03:09.560 We'll see what it looks like, but it falls in 0:03:09.560 --> 0:03:11.600 line with sort of his broader vision to make that 0:03:11.639 --> 0:03:12.480 everything up all right. 0:03:12.520 --> 0:03:14.919 Bloomberg's Asha counts dealing with what was some pretty late 0:03:14.960 --> 0:03:18.480 news last night, but it's had a big response. So 0:03:18.560 --> 0:03:22.120 let's keep the conversation going with Jennifer greig Or, Syracuse 0:03:22.200 --> 0:03:27.720 University Associate Professor of Communications. Jennifer in the first instance, 0:03:28.400 --> 0:03:33.120 the specific data sets, X is asking for your reaction. 0:03:32.840 --> 0:03:37.400 To that, well special thanks to Asia and everybody, you know, 0:03:37.480 --> 0:03:40.200 reading the fine print and highlighting the things that are 0:03:40.880 --> 0:03:44.000 coming and being added, because that tells you something, right. 0:03:44.080 --> 0:03:47.640 And so sure there's the biometrics piece. I'm sure he's 0:03:47.720 --> 0:03:51.320 clarified now that it's for you know, validating that they 0:03:51.360 --> 0:03:55.200 are who they say they are for these authenticated accounts, right. 0:03:55.240 --> 0:03:58.280 But you know, I think the fact that it's jobs, 0:03:58.600 --> 0:04:03.840 that it's education, your job and your education tell you something, right, 0:04:04.520 --> 0:04:08.480 They tell you maybe your income, how they can influence you. 0:04:08.840 --> 0:04:13.640 But it's a demographic that provides you know, targeted marketing, 0:04:14.400 --> 0:04:17.000 I would say, and that's one reason they're capturing that 0:04:17.080 --> 0:04:18.279 maybe why that's a new thing. 0:04:20.560 --> 0:04:26.479 X talks about the impact this will have encountering impersonators 0:04:26.480 --> 0:04:31.360 on the platform. I myself have had impersonation accounts of 0:04:31.720 --> 0:04:35.400 me pop up on the platform several times. In recent months, 0:04:36.080 --> 0:04:37.960 do you give them the benefit of the doubt that 0:04:38.120 --> 0:04:40.520 that will be an effective way of countering that. 0:04:42.920 --> 0:04:45.839 I think that's what they're hoping for. But again, you know, 0:04:45.920 --> 0:04:48.680 bad actors can always get around things, right. But the 0:04:48.760 --> 0:04:53.159 more trust we then put into this authenticated identity, the 0:04:53.240 --> 0:04:57.359 more risk there might be introduced too. So I'm remembering back, 0:04:57.440 --> 0:04:59.920 you know, to like when the ap account was had 0:05:00.200 --> 0:05:03.039 and had said that you know, something happened at the 0:05:03.040 --> 0:05:06.120 White House and then the stock market crashed, right, you know, 0:05:06.200 --> 0:05:09.120 So I think once you put more trust in it 0:05:09.120 --> 0:05:12.800 too is problematic. I think what we've learned over the 0:05:12.839 --> 0:05:17.039 past year since Musk is that centralization is inherently risky 0:05:17.360 --> 0:05:20.560 and that maybe it's not a good idea to have, 0:05:20.720 --> 0:05:23.960 you know, so many professionals and jarlists and everyone tied 0:05:24.000 --> 0:05:27.320 into the space which is controlled essentially by you know, 0:05:27.600 --> 0:05:30.160 an individual. Now, it was a corporation before, but there 0:05:30.160 --> 0:05:32.520 were issues under Dorsey and what it was corporate too. 0:05:32.480 --> 0:05:33.680 So I don't know. 0:05:33.720 --> 0:05:37.480 I think that you know, he's trying to solve or something, 0:05:37.520 --> 0:05:40.800 but the risks aren't necessarily new and they're not going away. 0:05:40.839 --> 0:05:43.279 But he is trying to get more people to stick around, 0:05:43.360 --> 0:05:47.520 and again, Twitter X platform whatever you want to call 0:05:47.560 --> 0:05:51.640 it now hasn't totally failed, right, so, but it has evolved. 0:05:51.720 --> 0:05:54.560 So I think we need to keep an eye on, 0:05:54.640 --> 0:05:56.520 you know, how it's changing, how he's trying to retain 0:05:56.600 --> 0:05:59.760 people and to maybe generate some revenue. 0:06:00.839 --> 0:06:04.000 X the platform formerly known as Twitter is the line 0:06:04.040 --> 0:06:08.279 that we repeat daily on this show, Bloomberg Technology, Jennifer. 0:06:08.279 --> 0:06:11.840 There are certainly some jurisdictional and legal questions that arise 0:06:11.880 --> 0:06:15.640 from this policy move. I note that if you go 0:06:15.720 --> 0:06:18.520 to the policy page, the biometric data in particular is 0:06:18.640 --> 0:06:22.279 quote based on your consent as a user, but it 0:06:22.360 --> 0:06:27.279 is personally identifying information. And therefore I ask about GDPR 0:06:27.400 --> 0:06:30.120 in Europe and what you think will happen in that region. 0:06:31.120 --> 0:06:34.440 Yeah, and so I like how Musk is clarifying that 0:06:34.480 --> 0:06:36.960 this is for the premium users. But there are class 0:06:37.000 --> 0:06:39.720 actions here even in the United States about the capture 0:06:39.720 --> 0:06:42.320 of biometrics data in like the state of Illinois. That's 0:06:42.360 --> 0:06:45.960 where that's most relevant because they have some unique kind 0:06:45.960 --> 0:06:49.479 of legislation there. But it wasn't really transparent that this 0:06:49.640 --> 0:06:52.120 is what they were doing as a company. But you know, 0:06:52.360 --> 0:06:55.400 photo scans are pretty standard. We saw issues with meta 0:06:55.400 --> 0:06:58.039 Facebook as well in the past. And when it comes 0:06:58.080 --> 0:07:02.880 to Europe, you know, they have definitely more privacy initiatives 0:07:02.880 --> 0:07:05.719 over there. We're way behind here in the United States. 0:07:06.440 --> 0:07:10.200 But gdpr essentially is about consent, you know, so it's 0:07:10.600 --> 0:07:13.120 nice to know when something you know really personal is 0:07:13.160 --> 0:07:16.920 being collected, but also the ability to like opt out 0:07:16.960 --> 0:07:20.440 of things. I don't know, I feel like this free 0:07:20.480 --> 0:07:23.640 Twitter app, if you're a free user, you're just you're 0:07:23.640 --> 0:07:27.320 paying more and more with things like not being able 0:07:27.400 --> 0:07:30.280 to consent to certain things being collected about you. And 0:07:30.320 --> 0:07:32.400 maybe some people are like whatever, I don't care scan 0:07:32.520 --> 0:07:34.560 my face, or I don't care a track, or I 0:07:34.600 --> 0:07:36.840 go on the internet. But it's what happens to that 0:07:37.000 --> 0:07:41.559 data in aggregate, right? And then who does Musk and 0:07:41.920 --> 0:07:46.360 other corporate actors share this data with? And I particularly 0:07:46.440 --> 0:07:50.120 am interested in, like how do they share data with governments? 0:07:50.280 --> 0:07:53.000 So not just the you know, you know, the United States, 0:07:53.000 --> 0:07:56.160 but also like Saudi Arabia, right that is also an 0:07:56.160 --> 0:08:00.960 investor in Musk's enterprise. So you know, once that data 0:08:01.040 --> 0:08:04.560 is collected, these tools are created, you know, the risks 0:08:05.640 --> 0:08:08.760 essentially grow sometimes without the public knowing. 0:08:09.240 --> 0:08:11.080 So I just want to raise some awareness around that. 0:08:11.000 --> 0:08:14.240 Too, Jennifer, you raise the idea of the data being 0:08:14.320 --> 0:08:17.000 used in aggregate and the other piece of news overnight 0:08:17.200 --> 0:08:23.120 is X offering video and audio call function without having 0:08:23.160 --> 0:08:26.440 to submit a cell phone number, you know, moving away 0:08:26.480 --> 0:08:29.640 from social media. Your view on and everything app and 0:08:29.920 --> 0:08:31.480 the data relationship there. 0:08:32.960 --> 0:08:35.120 It really is proving to be an everything app. He 0:08:35.200 --> 0:08:38.760 wants to collect everything. That's really, so. 0:08:38.679 --> 0:08:39.760 The more data the better. 0:08:40.240 --> 0:08:43.040 If they're making something like more squishy and loose, is 0:08:43.080 --> 0:08:46.600 because they want you to contribute more. They're essentially lowering 0:08:46.640 --> 0:08:49.880 the barrier to entry, right, So I would say, if 0:08:49.880 --> 0:08:52.760 you don't have to include a phone number, which again 0:08:52.840 --> 0:08:55.480 can be considered personal information, a lot more things are 0:08:55.480 --> 0:08:58.959 tied and validated through our cell phone numbers. So I 0:08:59.000 --> 0:09:02.120 would say that wants to you know, maybe generate some 0:09:02.200 --> 0:09:06.240 more views and use of live streaming, the video apps, 0:09:05.880 --> 0:09:10.160 the voice you know, audio and that can be collected too. 0:09:10.200 --> 0:09:12.200 So that's another biometric piece. 0:09:12.240 --> 0:09:13.080 Two is your your. 0:09:12.960 --> 0:09:16.520 Voice as as a print to it as well. So 0:09:17.440 --> 0:09:20.200 and I think we have to really just continue to 0:09:20.280 --> 0:09:24.200 keep an eye on AI and how all of this 0:09:24.280 --> 0:09:27.720 data is being captured to train future models. So you know, 0:09:27.760 --> 0:09:31.040 again the more voice that submitted, the more that can 0:09:31.080 --> 0:09:34.320 be analyzed and used in the future, potentially even without 0:09:34.360 --> 0:09:37.280 our consent. So we just have to be careful, you know, 0:09:37.320 --> 0:09:39.840 what we're contributing, and hopefully at some point we can 0:09:39.880 --> 0:09:43.959 get away from such centralized, you know, spaces that are 0:09:43.960 --> 0:09:47.640 governed by you know, wealthy folks like Musk or corporations, 0:09:48.120 --> 0:09:51.720 because it becomes really a target of intervention of governments 0:09:51.760 --> 0:09:54.200 and stay actors, and that that's just going to get 0:09:54.400 --> 0:09:55.920 oppressive for the people. 0:09:56.240 --> 0:09:56.840 Down the road. 0:09:58.040 --> 0:10:03.000 Jennifer Greigel, Syracuse University, Associate Professor of Communications. Always great 0:10:03.400 --> 0:10:15.160 to have this discussion on Bloomberg technology, the journey to 0:10:15.240 --> 0:10:18.520 a potential Bitcoin ETF. There's been a bumpy one, but 0:10:18.600 --> 0:10:21.959 some key decisions in the race are trickling in this week. 0:10:22.000 --> 0:10:25.520 And first start with bitwise. The SEC expected to respond 0:10:25.520 --> 0:10:29.280 to its own filings, followed by black Rock, Invesco and 0:10:29.320 --> 0:10:31.960 others over the next forty eight hours or so. Delighted 0:10:31.960 --> 0:10:36.120 to say we're joined by bitwise, So Matt Hogan, so 0:10:36.200 --> 0:10:39.120 let's start there. Have you heard anything from the SEC, 0:10:39.160 --> 0:10:43.720 any updated communications or questions, because my understanding is the 0:10:43.760 --> 0:10:48.240 deadline to respond to your ETF application is Friday. 0:10:49.440 --> 0:10:52.040 That's exactly right, thanks for having me on. The SEC 0:10:52.160 --> 0:10:56.440 has forty five days to initially respond to applications for 0:10:56.559 --> 0:10:59.960 novel ETFs like a spot bitcoin ETF, and that window 0:11:00.200 --> 0:11:05.720 ends Friday for us. Historically, the SEC has extended their review. 0:11:05.800 --> 0:11:09.040 They can move those deadlines out by another forty five days, 0:11:09.480 --> 0:11:12.959 and that may happen. If I were an investor looking ahead, 0:11:13.000 --> 0:11:17.360 I'd circle October sixteenth as the next big deadline to watch. 0:11:17.400 --> 0:11:20.920 That's forty five more days after this weekend, and also 0:11:21.040 --> 0:11:24.000 forty five days after the Grayscale ruling, which is the 0:11:24.080 --> 0:11:27.840 last day the SEC could appeal. So this week is momentous. 0:11:28.120 --> 0:11:30.559 October sixteenth may be a very good day to keep 0:11:30.559 --> 0:11:30.960 an eye on. 0:11:32.520 --> 0:11:37.360 There's a question on how the SEC acts. Do they 0:11:37.440 --> 0:11:41.720 approve each application one by one, to your mind, or 0:11:41.720 --> 0:11:44.960 do they go by a common clock whereby they let 0:11:45.000 --> 0:11:46.240 everyone launch it once? 0:11:46.320 --> 0:11:47.000 What do you think? 0:11:47.920 --> 0:11:50.000 Yeah, you know, it's a great question. We don't know. 0:11:50.200 --> 0:11:52.400 If you look back at the history of the SEC's 0:11:52.400 --> 0:11:55.920 treatment of ETFs, you can see examples of each and 0:11:55.960 --> 0:11:58.880 so we have no idea what their plans are. I 0:11:58.960 --> 0:12:02.800 will say, on half of investors, the best outcome is 0:12:03.080 --> 0:12:05.719 likely to line up multiple ETFs and allow them to 0:12:05.800 --> 0:12:09.880 launch it once. That'll create the most competition, the lowest prices, 0:12:10.040 --> 0:12:13.040 the best products, and be the fairest probably to be 0:12:13.160 --> 0:12:15.920 asset managers who have worked so hard over ten years 0:12:16.000 --> 0:12:18.080 to get a spot Bitcoin ETF approved. 0:12:18.360 --> 0:12:19.880 So if we do get approval, that's what. 0:12:19.840 --> 0:12:22.960 I'm hoping to see, But of course anything could happen. 0:12:23.360 --> 0:12:25.160 We could see it in any which way. 0:12:26.280 --> 0:12:29.760 We're showing Bitcoin's performance in the session off by one 0:12:29.760 --> 0:12:32.640 and a half cent, but at around twenty seven thousand 0:12:32.720 --> 0:12:35.960 US dollars per token. The point being that the sort 0:12:35.960 --> 0:12:38.760 of euphoria of the US Appeals decision. 0:12:39.040 --> 0:12:39.800 Was short lived. 0:12:40.320 --> 0:12:42.520 I thought that that was supposed to be a starting 0:12:42.559 --> 0:12:45.560 gun or signal that this is great news for crypto. 0:12:46.880 --> 0:12:49.319 Yeah, I think it is great news for crypto. 0:12:49.400 --> 0:12:51.840 Right Crypto is going from a niche asset to a 0:12:51.920 --> 0:12:55.640 mainstream asset. This was an important step along this journey. 0:12:56.000 --> 0:12:59.520 But my expectation is about what we're seeing today. I 0:12:59.520 --> 0:13:03.000 think people likely to overestimate the short term impact of 0:13:03.000 --> 0:13:07.240 an ETAF and underestimate the long term impact of an ETF. 0:13:07.559 --> 0:13:10.040 That's what we saw when gold ETFs were approved in 0:13:10.080 --> 0:13:13.280 two thousand and three that really transformed gold as an 0:13:13.320 --> 0:13:14.679 asset class, moved. 0:13:14.440 --> 0:13:15.479 It into the mainstream. 0:13:15.720 --> 0:13:17.880 But it's not as if gold took off on the 0:13:18.000 --> 0:13:20.160 day it was approved, and I'd expect the same thing 0:13:20.240 --> 0:13:23.160 about bitcoin. People want this to be a one day story. 0:13:23.320 --> 0:13:25.880 It's fun to follow the race, but this is actually 0:13:25.920 --> 0:13:28.920 a ten year story. This is about bitcoin moving from 0:13:28.960 --> 0:13:31.920 the edge of the investment community to the center of 0:13:31.960 --> 0:13:33.760 the mainstream allocation space. 0:13:34.000 --> 0:13:35.199 That's really exciting. 0:13:35.360 --> 0:13:37.200 But if you're investing in that, you should be thinking 0:13:37.280 --> 0:13:40.079 about ten years and not a few days. 0:13:41.160 --> 0:13:44.199 When you say if you're investing, I wonder who you're 0:13:44.240 --> 0:13:47.480 referring to there, because the kind of two mainstay concerns 0:13:47.480 --> 0:13:52.920 of the SEC is the participation of retail investors also 0:13:53.040 --> 0:13:56.920 the idea of market manipulation. Have you been active in it? 0:13:57.360 --> 0:14:00.880 In sort of addressing those concerns with the I get itsa. 0:14:01.600 --> 0:14:02.599 Yeah, absolutely. 0:14:02.640 --> 0:14:05.280 You know, we've submitted over four hundred pages of academic 0:14:05.360 --> 0:14:09.200 research demonstrating that the bitcoin market of today is not 0:14:09.360 --> 0:14:12.000 the bitcoin market of five or ten years ago. 0:14:12.080 --> 0:14:13.360 This market has matured. 0:14:13.679 --> 0:14:15.720 I think it's matured to the space that we can 0:14:16.200 --> 0:14:20.040 have a bitcoin etf available. And the big point is 0:14:20.480 --> 0:14:24.480 investors are allocating to bitcoin already, they're using consumer apps, 0:14:24.640 --> 0:14:27.720 they're using other tools. All an ETF would do is 0:14:27.800 --> 0:14:32.240 make it safer, cheaper, and provide more regulatory protections to 0:14:32.320 --> 0:14:35.960 help investors get better exposure to something that they're finding 0:14:36.000 --> 0:14:38.560 their way to get exposure to as well. I will 0:14:38.600 --> 0:14:41.120 say we started this journey on spot bitcoin ETFs ten 0:14:41.200 --> 0:14:45.040 years ago, and the SEC was right to deny bitcoin ETFs. 0:14:45.040 --> 0:14:45.600 At that point. 0:14:45.640 --> 0:14:49.680 The industry wasn't ready, the institutions weren't ready, the infrastructure 0:14:49.760 --> 0:14:52.480 wasn't ready. But I think today it is and it's 0:14:52.520 --> 0:14:53.760 time for us to move forward. 0:14:55.480 --> 0:14:56.720 How do you move forward? 0:14:56.800 --> 0:14:59.880 And when you know, we just showed the calendar of 0:15:00.080 --> 0:15:03.480 everyone that could potentially have an ETF approved, it's quite 0:15:03.480 --> 0:15:06.720 a few of you. So how are you competitive against 0:15:06.720 --> 0:15:07.520 the large pack? 0:15:08.640 --> 0:15:12.040 Yeah? Bit wise, crypto is all that we do. We've 0:15:12.080 --> 0:15:15.360 been doing this for six years. We work with thousands 0:15:15.400 --> 0:15:18.920 of financial advisors and tens of thousands of investors. We've 0:15:18.960 --> 0:15:22.320 helped them navigate the great parts of crypto and the challenges. 0:15:22.680 --> 0:15:25.840 I think some investors will want to turn towards large, 0:15:25.840 --> 0:15:29.320 familiar asset managers like Blackrock, and others will want to 0:15:29.360 --> 0:15:31.680 turn to a crypto expert that they can call up 0:15:31.880 --> 0:15:34.600 and get answers from that are informed about what's going 0:15:34.640 --> 0:15:38.560 on in crypto. If you look at ETF's historically, specialist 0:15:38.560 --> 0:15:41.640 asset managers that focus on something twenty four to seven 0:15:41.720 --> 0:15:45.120 three sixty five win more than their fair share of assets. 0:15:45.120 --> 0:15:47.000 And that's what Bitwise is provided. 0:15:47.040 --> 0:15:50.120 You know, we're the largest crypto index fund provider in 0:15:50.160 --> 0:15:53.080 America and we want to take that expertise into this 0:15:53.120 --> 0:15:56.560 spot bitcoin ETF market and serve investors that way. 0:15:57.920 --> 0:16:01.600 Bit Wise CIO Matt Hayugen just such a timely conversation 0:16:02.000 --> 0:16:04.720 as it develops. Come back and join us on bloombog 0:16:04.760 --> 0:16:08.200 Technology blow by blow. Thank you very much. They're coming 0:16:08.280 --> 0:16:11.000 up here on the show. Activist investors called on salesforce 0:16:11.040 --> 0:16:14.360 to boost profits and the company's making good on that bet. 0:16:14.400 --> 0:16:17.400 We'll recap the numbers from Mark Benioffs Software Empire. 0:16:17.640 --> 0:16:18.200 Coming up next. 0:16:18.240 --> 0:16:20.240 We're also looking at shares by the way of CrowdStrike. 0:16:20.320 --> 0:16:24.520 Another earning story, biggest indusday rise since May. The security 0:16:24.560 --> 0:16:28.200 software company issued forecast feeding second quarter earnings and a 0:16:28.240 --> 0:16:32.200 guidance upgrade, prompting Frankly, several analysts to raise their price 0:16:32.280 --> 0:16:35.480 targets on the stock up nine percent in the session. 0:16:35.520 --> 0:16:53.960 This is Bloomberg Technology time for talking tech. First up, 0:16:53.960 --> 0:16:55.960 we spoke a little bit yesterday about the release of 0:16:56.040 --> 0:17:00.400 Huawei's surprise smartphone. Now Chinese state media is ailing the 0:17:00.480 --> 0:17:03.680 launch of the Mate sixty pro as a victory in 0:17:03.720 --> 0:17:06.560 the ever so tense tech war against the United States. 0:17:06.600 --> 0:17:10.280 A number of Beijing back columns have run overnight praising 0:17:10.359 --> 0:17:13.760 Huawei since the device's released, which happened to coincide with 0:17:13.880 --> 0:17:18.560 Common Secretary Gina Romando's visit to China. Sigma Smartphones Apple 0:17:18.640 --> 0:17:21.360 taking a greener approach to producing some of its upcoming 0:17:21.400 --> 0:17:24.960 smart watches, Bloomberg reporting the companies trying out three D 0:17:25.119 --> 0:17:27.960 printers to make the gadgets in order to use less 0:17:28.040 --> 0:17:31.119 slabs of metal. The new approach has the potential to 0:17:31.200 --> 0:17:34.040 streamline Apple supply chain and be more eco friendly. 0:17:34.320 --> 0:17:35.920 Apple declined to comment on the story. 0:17:35.960 --> 0:17:39.400 Plus, in an effort to fend off further antitrust scrutiny 0:17:39.440 --> 0:17:42.800 by the European Union, Microsoft is offering to unbundle its 0:17:42.840 --> 0:17:46.320 Teams video conferencing unit from its business software package. 0:17:46.320 --> 0:17:46.960 In Europe. 0:17:47.080 --> 0:17:51.080 EU investigators are examining whether Microsoft breached competition rules by 0:17:51.119 --> 0:17:54.760 offering teams with Office and Microsoft three sixty five in 0:17:54.800 --> 0:17:58.280 a package. This follows a complaint from Salesforce and its 0:17:58.280 --> 0:18:01.520 messaging platform Slack, which they may three years ago. Sticking 0:18:01.520 --> 0:18:05.480 with Salesforce, the company boosting investor confidence after posting strong 0:18:05.520 --> 0:18:08.119 second quarter earnings beat lest I set the numbers with 0:18:08.160 --> 0:18:10.680 Bloomberg Intelligence senior tech analysts An A. 0:18:10.720 --> 0:18:11.320 Rag Rana. 0:18:11.840 --> 0:18:14.520 There was a lot that Salesforce did to their credit right, 0:18:14.640 --> 0:18:17.240 raised prices for the first time in seven years July. 0:18:17.640 --> 0:18:20.560 They've cut headcount. What jumped out to you from that 0:18:20.640 --> 0:18:21.320 earnings print. 0:18:22.760 --> 0:18:25.000 I think the bookings number or what we look at 0:18:25.040 --> 0:18:28.359 called CRPO grew about eleven percent in constant currency, and 0:18:28.400 --> 0:18:31.359 I think that was a surprise to a number of them, 0:18:31.520 --> 0:18:33.639 number of people, I would say, which is partially the 0:18:33.720 --> 0:18:34.960 reason why the star is up. 0:18:35.240 --> 0:18:35.399 You know. 0:18:35.440 --> 0:18:37.679 I think we were expecting that going in because we 0:18:37.760 --> 0:18:40.760 already heard from the likes of Microsoft and Amazon that 0:18:40.800 --> 0:18:44.000 there is some stabilization in the decline in take spending, 0:18:44.840 --> 0:18:47.280 so we weren't looking for a bad print, but I 0:18:47.280 --> 0:18:50.520 think the expectations were very negative going into the quarter. 0:18:53.119 --> 0:18:54.840 AI we just got to talk about it. 0:18:54.840 --> 0:18:57.080 You know, we lean in on this idea that on 0:18:57.119 --> 0:19:01.080 a per user basis, Salesforce can shock seventy five hundred 0:19:01.119 --> 0:19:04.919 dollars per user. Right, top line growth was eleven percent 0:19:04.960 --> 0:19:06.439 in the court of gone. But this is a company 0:19:06.440 --> 0:19:08.879 that used to grow twenty to thirty percent top line. 0:19:09.080 --> 0:19:11.600 Does AI return them to that level of growth? 0:19:12.359 --> 0:19:12.520 Oh? 0:19:12.560 --> 0:19:14.440 No, No, twenty to thirty is very I mean, it's 0:19:14.680 --> 0:19:17.160 out of the question in my view. When you look 0:19:17.200 --> 0:19:20.080 at a company like Salesforce, given its size, given the 0:19:20.200 --> 0:19:22.520 end markets, you know, this is a company that, in 0:19:22.560 --> 0:19:25.760 our view should grow revenue somewhere between ten and fifteen percent. 0:19:26.000 --> 0:19:28.760 You know, if you're really in good times, it will 0:19:28.800 --> 0:19:31.320 be closer to the thirteen to fifteen percent mark. In 0:19:31.400 --> 0:19:33.440 bad times it will be around the ten percent mark. 0:19:33.840 --> 0:19:36.960 The end markets are the software products that they're selling. 0:19:37.240 --> 0:19:39.679 I mean they are close to I would say, you know, 0:19:39.800 --> 0:19:42.960 in line with the software industry. Not not so much 0:19:43.000 --> 0:19:44.520 in that twenty percent range anymore. 0:19:45.600 --> 0:19:46.439 And Rag, I know you. 0:19:47.000 --> 0:19:50.120 Zero it in on the fundamentals. You have better command 0:19:50.119 --> 0:19:52.200 of the numbers than anyone I know. But I want 0:19:52.200 --> 0:19:54.679 to ask about Mark Bennioff. You know, investors made it 0:19:54.680 --> 0:19:57.679 clear what they wanted and Mark Benioff did it focused 0:19:57.720 --> 0:19:58.119 on profit. 0:20:00.680 --> 0:20:01.760 You see, it's a lot. 0:20:01.640 --> 0:20:03.879 More to goal when it comes to profit, and Mark's 0:20:03.920 --> 0:20:05.919 done a good job about it. But I think you know, 0:20:05.960 --> 0:20:08.080 it's going to be a lot more than where we 0:20:08.119 --> 0:20:10.439 are right now. And the only reason is because they 0:20:10.440 --> 0:20:12.800 spends still a lot of money on sales and marketing 0:20:13.040 --> 0:20:15.800 compared to their rivals like Microsoft or Article, so we 0:20:16.119 --> 0:20:18.920 expect margins to go even hired over the next few years. 0:20:19.760 --> 0:20:22.480 Yeah, they raised their operating margin guidance for the fiscal 0:20:22.560 --> 0:20:25.679 year by two percentage points. Anarag Rana, senior tech analyst 0:20:25.680 --> 0:20:27.400 for Bloomberg Intelligence Goods catch up. 0:20:27.680 --> 0:20:28.399 Thank you very much. 0:20:36.880 --> 0:20:39.960 Welcome back to Bloomberg Technology ed Lovelow here in San Francisco. 0:20:40.040 --> 0:20:42.360 This is what the technology sector looks like in e 0:20:42.359 --> 0:20:45.800 equity markets andw's that one hundred slightly higher. The story 0:20:45.800 --> 0:20:48.000 of the week's kind of in economic data and earnings. 0:20:48.000 --> 0:20:51.000 But remember we get jobs data Friday that will inform 0:20:51.040 --> 0:20:54.159 what the Fed does and therefore the rates narrative and 0:20:54.200 --> 0:20:57.000 how we value many of these tech stocks, particularly on 0:20:57.000 --> 0:21:00.280 the NATS. That one hundred elsewhere slight outperformance for chip stocks. 0:21:00.280 --> 0:21:02.479 We're going to talk a bit later about Broadcon reporting 0:21:02.520 --> 0:21:05.600 after the bell that dragging it higher. Ev Names pushing 0:21:05.600 --> 0:21:08.080