WEBVTT - Investing Strategies For Crypto, ESGs, And Telecommunications 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.600 --> 0:00:18.439 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.639 at Bloomberg dot com Slash podcast. Let's get into the 0:00:22.680 --> 0:00:26.560 cloud right now. We've got Ido Susan with us, founder 0:00:26.640 --> 0:00:30.360 of drive nets UM. He had founded Into Sales Sol 0:00:30.560 --> 0:00:33.600 Cisco worked for them for a while UM, but now 0:00:33.600 --> 0:00:37.839 he's back out there building a bigger company. You've got, uh, 0:00:37.920 --> 0:00:40.720 I know what, two hundred two hundred million dollars in 0:00:40.760 --> 0:00:44.880 funding already. Yes, So what are you doing at drive nets? 0:00:44.880 --> 0:00:48.159 What's your main focus after coming out of Into Sell 0:00:48.200 --> 0:00:52.680 and Cisco. I will go it's basically to change the 0:00:52.720 --> 0:00:58.040 network and the Internet infrastructure design and building operators of today, 0:00:58.280 --> 0:01:02.000 supporting with the custom of the operators like A T 0:01:02.160 --> 0:01:04.960 and T and other UM to reduce a cost per 0:01:05.040 --> 0:01:07.520 bit and to create new revenue because the way that 0:01:07.560 --> 0:01:13.560 we consume the network UM as consumer enterprise different change 0:01:13.640 --> 0:01:17.679 dramatically and the network didn't. And we are here to 0:01:17.720 --> 0:01:20.600 support and then drive the transformation to the cloud. Yeah, 0:01:20.640 --> 0:01:22.440 you would think that a lot of that would have 0:01:22.440 --> 0:01:25.040 been accelerated to the pandemic, But somehow we look at 0:01:25.040 --> 0:01:28.360 our country and we're still pretty woefully behind. It is 0:01:28.400 --> 0:01:31.920 that fair to say? Um? If you you know, we 0:01:32.120 --> 0:01:37.400 operate worldwide, so the US market advancing in this area. 0:01:37.600 --> 0:01:42.080 But I think, um, the boorders between consumers and enterprise 0:01:42.160 --> 0:01:45.680 does not exist anymore. Our home it's our new office. 0:01:46.480 --> 0:01:50.640 And if the operators will not focusing to all out 0:01:50.680 --> 0:01:54.880 fiber to the home five G WiFi C capability, um, 0:01:54.960 --> 0:01:57.120 we will not be able to walk to study from 0:01:57.160 --> 0:02:00.280 home and to support the demand. Yeah, I'm looking for 0:02:00.360 --> 0:02:02.960 houses right now in the Tri state area, and every 0:02:03.040 --> 0:02:06.200 place that I look at takes pains to point out 0:02:06.240 --> 0:02:09.760 there's room for a home office. It's it's recently been rewired, 0:02:10.040 --> 0:02:12.040 you know, or if it hasn't, it just stays on 0:02:12.080 --> 0:02:14.880 the market for a hundred and fifty days and nobody, 0:02:14.960 --> 0:02:18.480 nobody wants to buy it. How is it competing ido 0:02:18.600 --> 0:02:23.160 with your former employer, with behemos like Cisco and Juniper 0:02:23.160 --> 0:02:26.400 and these gigantic companies. How do you get um, I 0:02:26.480 --> 0:02:28.160 know you recently got a contract with a T and T. 0:02:28.320 --> 0:02:31.240 How do you get contracts um with with with these 0:02:31.320 --> 0:02:34.240 huge clients when you have to compete with you know, 0:02:34.320 --> 0:02:38.400 the biggest goliaths in the world. First of all, as 0:02:38.440 --> 0:02:41.800 you mentioned, um, Um, you know Cisco was a qualet 0:02:41.840 --> 0:02:44.200 my previous company. And I'm not forget what I'm coming from, 0:02:44.400 --> 0:02:47.600 the amazing company and also the rest of the incumbent 0:02:47.639 --> 0:02:52.440 in this industry. But because I'm coming from Cisco, I 0:02:52.480 --> 0:02:56.840 know how it's how then almost unpossible to change that 0:02:56.880 --> 0:03:00.440 you're doing business because you need to support the stock, 0:03:00.520 --> 0:03:03.760 you need to run after the quarterly revenue, and to 0:03:03.880 --> 0:03:08.040 do transformation to your technology and the way that you 0:03:08.120 --> 0:03:10.959 are selling and create a value to the customer. It's 0:03:11.200 --> 0:03:14.640 very hard, um. So you know we are here to 0:03:15.160 --> 0:03:18.040 do challenge money. It's not our drive anymore. And we 0:03:18.040 --> 0:03:24.040 are here to transform um the network industry, begin industry 0:03:24.160 --> 0:03:26.720 and to create value and the customer. Like A T 0:03:26.840 --> 0:03:29.639 and T and other looking for the startups like us 0:03:29.720 --> 0:03:32.040 that will help them to disrupt the way that they 0:03:32.040 --> 0:03:35.080 are operate and build their network in order to again 0:03:35.160 --> 0:03:37.400 create new revenue and too, would you say the cost 0:03:37.680 --> 0:03:40.240 I'm wondering also with the shift to the home office. 0:03:40.480 --> 0:03:44.160 What the cybersecurity concerns are. I know that's a huge 0:03:44.200 --> 0:03:48.720 issue that a lot of employers are struggling with. Yes, cybersecurity, 0:03:48.800 --> 0:03:52.080 it's a big thread all over. UM. It's not related 0:03:52.120 --> 0:03:56.240 only to home, to our mobile, to our privacy. UM. 0:03:56.320 --> 0:04:01.400 We see a lot of challenges. I think, UM, the 0:04:01.520 --> 0:04:07.280 way and the opportunity for the operators UM to help 0:04:07.480 --> 0:04:10.640 to protect our privacy and to help to drive more 0:04:10.760 --> 0:04:14.840 security to any type of device that we all connected, 0:04:14.880 --> 0:04:19.719 if it's IoT, mobile, home, you name it. UM, it's 0:04:19.720 --> 0:04:22.960 a big opportunity and I think, UM, I cannot share 0:04:23.000 --> 0:04:25.280 too much, but I can tell you that they are 0:04:25.320 --> 0:04:29.320 walking around it and this is one of the revenue 0:04:29.520 --> 0:04:31.960 generation that they all play to have in the next 0:04:31.960 --> 0:04:34.599 coming years. And of course it would benefit of US. 0:04:34.960 --> 0:04:38.680 I know we had recently uh a US infrastructure buil 0:04:38.720 --> 0:04:43.599 five billion dollars in new spending has earmarked a pretty 0:04:43.600 --> 0:04:47.840 sizeable piece, UM for what you're doing, and I'm sure 0:04:47.920 --> 0:04:50.320 other countries also are going to be spending money to 0:04:50.400 --> 0:04:53.599 try and improve the infrastructure. How much of a boost 0:04:53.720 --> 0:04:56.680 will that give you over the coming years. It's a 0:04:56.760 --> 0:05:00.520 huge boost boost, UM, we see it. Yes, as you mentioned, 0:05:00.560 --> 0:05:02.400 it's not only here in the state, it's all over, 0:05:02.600 --> 0:05:07.279 it's worldwide. UM. It's help us. UM, it's help our 0:05:07.400 --> 0:05:12.520 customer to moderate their infrastructure and to think out of 0:05:13.360 --> 0:05:16.640 the box. And also for US, it's UM we're getting 0:05:16.680 --> 0:05:20.440 a big and very nice contracts to move ahead. UM. 0:05:21.600 --> 0:05:24.360 I think it's just the beginning. I think more and 0:05:24.400 --> 0:05:29.239 more money will go from government to those infrastructure because 0:05:29.440 --> 0:05:33.159 everybody understands that if you want to move ahead with 0:05:33.480 --> 0:05:37.320 any segment, if it's healthcare, if it's education, if it's 0:05:37.760 --> 0:05:44.640 you name it, you need very robust infrastructure, networking infrastructure 0:05:45.360 --> 0:05:48.800 to support the demand of the traffic. UM. And the 0:05:48.839 --> 0:05:52.080 way to do it it's with technology like US and 0:05:52.200 --> 0:05:55.640 others as well, UM, that we help to convert it 0:05:55.640 --> 0:05:59.320 to be cloud based solutions, software based solution. UM. So 0:05:59.360 --> 0:06:02.159 I think it's just the beginning. Yeah. Absolutely. I'm still 0:06:02.160 --> 0:06:06.960 working on upgrading my electric panels and after I get 0:06:07.120 --> 0:06:11.120 past that, then I'll boost the cloud computing power of 0:06:11.240 --> 0:06:13.400 my house. Ido, thanks so much for joining us. Ido 0:06:13.480 --> 0:06:17.400 Susan there. He is the founder of drive nets, coming 0:06:17.440 --> 0:06:20.279 out of into Cell and Cisco. Talking to us about 0:06:20.600 --> 0:06:23.000 the move away from hardware and into the cloud. That 0:06:23.000 --> 0:06:25.280 we've all taken part in over the past few years, 0:06:25.320 --> 0:06:33.640 but we need to accelerate. I promised you we would 0:06:33.640 --> 0:06:36.799 talk about corporate governance and UM E s G investing. 0:06:36.800 --> 0:06:39.279 Maya Becker joins us. She's the director of Corporate Governance 0:06:39.360 --> 0:06:44.360 Responsible Investment with rbc UM and Maya, it's great to 0:06:44.400 --> 0:06:45.800 have you on. You know, there was a time when 0:06:45.880 --> 0:06:47.520 we would have thought of this maybe as a fat 0:06:47.600 --> 0:06:50.000 as a trend, but it now seems like a strategy. 0:06:50.080 --> 0:06:53.160 How do you see it? Yes, thank you so much 0:06:53.160 --> 0:06:56.200 for having me. Absolutely, we are seeing that the E 0:06:56.400 --> 0:06:58.920 s G and climate change is absolutely top of mind 0:06:58.960 --> 0:07:02.520 for institutional and sters. Rbc GAM actually just completed out 0:07:02.560 --> 0:07:07.200 fifth innual Responsible Investment survey of eight hund global institutional 0:07:07.240 --> 0:07:11.640 asset managers and it showed that not only our investors 0:07:11.680 --> 0:07:14.559 concerned and interested in E s G, but climate change 0:07:14.600 --> 0:07:19.600 is their top priority after anti corruption and cyber security. 0:07:20.080 --> 0:07:21.760 And for those that care about E s G, their 0:07:21.800 --> 0:07:24.640 top E s G concern is climate change. And this 0:07:25.280 --> 0:07:29.520 concern and this focus is really more felt, certainly by 0:07:29.560 --> 0:07:32.600 European investors who are paying the closest attention, and we 0:07:32.680 --> 0:07:35.640 see regulation as a real key driver of that. I 0:07:35.640 --> 0:07:39.200 am curious about developed versus undeveloped nations here or under 0:07:39.200 --> 0:07:41.800 developed nations. You know, we were having a conversation this 0:07:41.840 --> 0:07:45.680 morning with a representative from Mercy Corps was doing work 0:07:45.720 --> 0:07:48.679 in Nigeria and really talking about the lack of support 0:07:48.720 --> 0:07:51.960 that they were getting as a lot of conflict was 0:07:52.000 --> 0:07:56.640 breaking out in the country over climate related issues. Do 0:07:56.680 --> 0:07:59.360 you think that these promises being made a COP twenty 0:07:59.480 --> 0:08:01.440 six or going to start moving the needle for the 0:08:01.440 --> 0:08:05.400 countries that need it most. I think that's a great question, 0:08:05.600 --> 0:08:07.840 and what we're seeing at the COP twenty six Climate 0:08:07.880 --> 0:08:09.840 Conference is really there are a lot of high level 0:08:09.840 --> 0:08:12.480 commitments that are being made by governments. One of the 0:08:12.600 --> 0:08:16.960 key focuses of those conversations and negotiations is how advanced 0:08:17.000 --> 0:08:21.240 economy can provide support to developing nations, exactly what you're 0:08:21.280 --> 0:08:23.520 referring to their I think what we're going to want 0:08:23.560 --> 0:08:28.000 to see moving away from COP as COPS closes very shortly, 0:08:28.320 --> 0:08:31.520 is how do those commitments start to turn into government frameworks, 0:08:31.520 --> 0:08:34.800 policies or legislations and what are the actions that governments 0:08:34.800 --> 0:08:38.840 will be taking as they walk and leave COP twenty 0:08:38.920 --> 0:08:42.679 six with those commitments made, and will that actually generate 0:08:42.840 --> 0:08:46.920 support for developing nations too, in many ways are those 0:08:46.920 --> 0:08:49.920 that are most vulnerable to climate change, and that is 0:08:49.920 --> 0:08:52.600 a really important piece. As the investors when we look 0:08:52.640 --> 0:08:54.720 at E. S G and we look at climate change, 0:08:54.880 --> 0:08:57.640 our focus is really on integrating climate change into the 0:08:57.679 --> 0:09:01.280 investment process, and that means looking at how climate risks 0:09:01.320 --> 0:09:05.640 and opportunities will impact different sectors and different geographies, because 0:09:05.640 --> 0:09:08.360 they'll each be impacted in different ways, and we need 0:09:08.400 --> 0:09:10.959 to be taking those considerations into account when we look 0:09:10.960 --> 0:09:13.680 at our investments. And government has a key role to 0:09:13.760 --> 0:09:16.840 play in addressing climate change and in supporting that just 0:09:17.160 --> 0:09:21.400 an orderly transition for all global nations. And it feels 0:09:21.400 --> 0:09:23.520 to me like we'd rather pass out band aids to 0:09:23.679 --> 0:09:28.160 underdeveloped nations than fix the gaping wounds in our own Um. 0:09:28.280 --> 0:09:33.000 We can't even in the US, in Germany, in France 0:09:33.040 --> 0:09:37.959 agree to phase out internal combustion engines at our manufacturers 0:09:37.960 --> 0:09:42.000 over the next twenty years. I mean, it's I feel 0:09:42.040 --> 0:09:45.040 like COP twenty six achieved really very little in terms 0:09:45.080 --> 0:09:48.240 of meaningful commitments from the biggest nations. Am I wrong? 0:09:48.240 --> 0:09:52.280 Am I being too cynical? Well? I think, firstly, if 0:09:52.280 --> 0:09:53.920 we think of what we can take away from COP 0:09:54.000 --> 0:09:55.959 twenty six and it is still long agoing, there's still 0:09:55.960 --> 0:09:58.680 a few days left here. As we did see governments 0:09:58.720 --> 0:10:02.200 make some significant cap commitments that CAUGHT twenty six new 0:10:02.240 --> 0:10:04.800 climate pledges, which will do this year since it is 0:10:04.920 --> 0:10:07.840 the fifth conference after the Paris Agreement, and that is 0:10:08.040 --> 0:10:11.200 something to take encouragement from those commitments that are being made. 0:10:11.360 --> 0:10:13.920 They're also specific sectors we're so far off from We're 0:10:13.920 --> 0:10:16.240 so far off from hitting the climate pledges we made 0:10:16.240 --> 0:10:19.560 it Paris in two thousand fifteen. I mean, what's the 0:10:19.600 --> 0:10:21.840 point in making new promises if we can't even meet 0:10:21.840 --> 0:10:25.320 the old ones. Well, what will be important is when 0:10:25.360 --> 0:10:28.439 we leave CAUGHT twenty six is seeing how these pledges 0:10:28.480 --> 0:10:32.200 and these commitments get turned into policies and practices and 0:10:32.240 --> 0:10:35.000 looking at what those sector transition plans are, because I 0:10:35.000 --> 0:10:37.600 think that's what we're talking about here. How does each 0:10:37.640 --> 0:10:40.960 sector transition to net what does that look like? What 0:10:41.160 --> 0:10:44.160 is the price on carbon, what are the subsidies, what 0:10:44.400 --> 0:10:46.960 are the commitments that are made at a sector level, 0:10:46.960 --> 0:10:49.520 because each of those sectors needs to have a plan 0:10:49.600 --> 0:10:52.280 of how they're going to transition to net zero the 0:10:52.440 --> 0:10:55.400 climate change and why it's so complex and challenging is 0:10:55.440 --> 0:10:58.400 because it affects all sectors and all geographies, although in 0:10:58.440 --> 0:11:01.360 different ways. And what we do need to be able 0:11:01.360 --> 0:11:03.680 to find is to be able to find solutions that 0:11:03.840 --> 0:11:07.800 bring all sectors along that pathway to that zero when 0:11:07.800 --> 0:11:10.319 he said that give us is a direction, but you're right, 0:11:10.400 --> 0:11:12.320 it doesn't give us an indication of the speed of 0:11:12.360 --> 0:11:15.120 travel and the path of that travel will take and 0:11:15.200 --> 0:11:18.040 just thirty seconds or so here may because you know, 0:11:18.240 --> 0:11:20.839 there's this great question now in the US about the 0:11:20.920 --> 0:11:25.120 disclosures needed out of the SEC. Do you think that 0:11:25.120 --> 0:11:27.839 that can be done this year in a way that's 0:11:27.880 --> 0:11:32.719 meaningful to someone like you? Well, I think disclosures absolutely 0:11:33.000 --> 0:11:37.120 is a priority. We need a single, ideally global sustainability 0:11:37.120 --> 0:11:40.800 of reporting standard for investors in order to integrate and 0:11:40.840 --> 0:11:43.800 consider how fun it is impacting an individual issue where 0:11:44.040 --> 0:11:49.000 we need that information to be consistent, comparable, and publicly disclosed. 0:11:49.240 --> 0:11:52.320 We're starting to see more interest from regulators in putting 0:11:52.320 --> 0:11:55.760 in place those consistent and comparable disclosures. What I would 0:11:55.760 --> 0:12:00.200 say we did here announced um during COP is the 0:12:00.200 --> 0:12:03.920 i f r S Foundation has formed a new International 0:12:03.960 --> 0:12:07.480 Sustainability Standards Boards and the hope there is that that 0:12:07.520 --> 0:12:11.400 will establish that common consistent standards for reporting, because absolutely 0:12:11.480 --> 0:12:14.520 that's something investors, Nathan, it is an important piece of 0:12:14.559 --> 0:12:17.240 all of this. Yeah, that's the key. That's that's that's 0:12:17.280 --> 0:12:18.720 got to be a key move for you and for 0:12:18.760 --> 0:12:22.600 your clients. UM, and that's I think what listeners investing 0:12:22.640 --> 0:12:24.840 in E s G want to want to get more of. Maya, 0:12:24.880 --> 0:12:27.280 thanks so much for joining us. Maya Becker is the 0:12:27.280 --> 0:12:30.680 director of Corporate Governance and Responsible Investment over at RBC 0:12:30.920 --> 0:12:33.640 Global Asset Management, talking to us about E s G 0:12:33.920 --> 0:12:42.440 and COP Let's get to crypto right now. I am 0:12:42.480 --> 0:12:44.760 pomped to talk to our next guest. Brett Harrison is 0:12:44.760 --> 0:12:48.520 the president of f t X and UM. This is 0:12:48.600 --> 0:12:52.720 a company we've been just watching absolutely explode. Brett, thanks 0:12:52.720 --> 0:12:55.880 so much for coming on the program with us. Let's 0:12:55.880 --> 0:13:00.679 talk about the um accept the broader acceptance crypto. It's 0:13:00.720 --> 0:13:04.400 been amazing to me. Ten years ago, I spent two 0:13:04.480 --> 0:13:07.680 weeks living only on bitcoin, stopped using dollars, and it 0:13:07.760 --> 0:13:11.280 was kind of a side show. It was a clown event. 0:13:11.360 --> 0:13:14.520 It was silly. It worked, but um, it was an oddity. 0:13:14.640 --> 0:13:18.640 Let's say, and now everybody, uh in every age group, 0:13:18.720 --> 0:13:21.960 in every walk of life wants to know something or 0:13:22.040 --> 0:13:25.400 does thinks they know something about crypto. How have you 0:13:25.480 --> 0:13:30.120 experienced the acceptance? Yeah, I think personally, I have a 0:13:30.120 --> 0:13:32.880 similar story. You know, before joining f t X, had 0:13:33.040 --> 0:13:36.200 very little experience with crypto. I had primarily been in 0:13:36.240 --> 0:13:39.280 the proprietary trading space on the equities and equity prohibitive 0:13:39.360 --> 0:13:43.120 side for my whole career, and coming to crypto it 0:13:43.240 --> 0:13:44.960 was very new to me as well. But it does 0:13:45.240 --> 0:13:49.080 feel like it is. It's ubiquitous now. Everyone wants to 0:13:49.120 --> 0:13:51.960 know something about crypto, understand the space, either invest in 0:13:52.000 --> 0:13:54.360 it or build on top of it. And it's more 0:13:54.400 --> 0:13:57.040 than just you know, a potential new currency or a 0:13:57.080 --> 0:13:59.880 means of transfer. It an entire technology platform that people 0:14:00.040 --> 0:14:03.200 really excited for the applications of. Now. I'm really curious 0:14:03.200 --> 0:14:07.440 about what you think about the Bitcoin versus ethereum debate, 0:14:07.600 --> 0:14:09.600 because on one hand, you know, I could talked to, 0:14:09.679 --> 0:14:13.000 for example, Elizabeth Stark of Lightning Labs last week, and 0:14:13.320 --> 0:14:17.599 for someone like her, bitcoin is the ultimate crypto to 0:14:17.640 --> 0:14:19.880 be building things on top of. But if you talk 0:14:19.960 --> 0:14:23.760 to someone like Ken Griffin, he believes that Bitcoin will 0:14:24.080 --> 0:14:28.360 be eventually replaced in concept by ethereum. How do you 0:14:28.400 --> 0:14:32.000 make sense of a debate like that? Sure, you know, 0:14:32.080 --> 0:14:34.640 I think that one really needs to dig into the 0:14:34.680 --> 0:14:37.880 details of these different cryptos and why they're built and 0:14:37.920 --> 0:14:41.440 what they're used for to understand them. Bitcoin and ethereum 0:14:41.440 --> 0:14:44.640 have very different applications. You know, Bitcoin itself was was 0:14:44.680 --> 0:14:47.680 the first real crypto to gain mass adopting, so it 0:14:47.760 --> 0:14:51.560 has that staying power. But Ethereum is coming something some 0:14:51.800 --> 0:14:53.640 pretty separate. You know. It's a place where you can 0:14:53.640 --> 0:14:57.720 build smart contracts, you can actually build applications on top 0:14:57.800 --> 0:15:00.320 of Ethereum. It's sort of like an Internet layer, are 0:15:00.360 --> 0:15:03.600 some kind of software software platform, And even just those 0:15:03.640 --> 0:15:06.440 two alone aren't going to be the only answers. You know, 0:15:06.480 --> 0:15:09.960 there are other cryptocurrencies built on blockchains that have even 0:15:10.360 --> 0:15:13.920 higher transactions per second, lower cost fees to do transfers, 0:15:13.920 --> 0:15:16.360 like Salada. We're going to see more than just Bitcoin 0:15:16.440 --> 0:15:19.880 the theoryum that have staying power in the crypto ecosystem. Yeah, 0:15:19.920 --> 0:15:22.480 I think there are big differences there that maybe Ken 0:15:22.480 --> 0:15:27.800 Griffin doesn't take into account Um, and he might be 0:15:27.840 --> 0:15:32.040 looking for something else rather than Um. Trying to appreciate 0:15:33.280 --> 0:15:36.880 the diversity in the crypto space. I wonder what you 0:15:36.920 --> 0:15:39.720 think of the I've always had a question as to 0:15:39.800 --> 0:15:44.280 why we'll necessarily need to buy whole tokens or multiple 0:15:44.320 --> 0:15:47.240 tokens just because we like the technology platform upon which 0:15:47.280 --> 0:15:51.000 they're built. For example, UM, I loved the Internet computer 0:15:51.080 --> 0:15:53.320 when it came out. It didn't do so well, but 0:15:53.360 --> 0:15:56.080 the idea I thought was cool and the technology was cool. 0:15:56.320 --> 0:15:58.840 I didn't necessarily need to own a token, or if 0:15:58.880 --> 0:16:00.600 I was going to start a business on it wouldn't 0:16:00.600 --> 0:16:03.600 have needed to buy two. I think you make a 0:16:03.680 --> 0:16:07.880 really excellent point here, which is that there's the blockchain 0:16:08.000 --> 0:16:12.240 that's being built for particular applications, and then there's a 0:16:12.320 --> 0:16:15.320 token associated with that blockchain or a token associated with 0:16:15.320 --> 0:16:18.080 that application. And I agree with you. I don't think 0:16:18.120 --> 0:16:22.280 we need thousands of different tokens or hundreds of different blockchains. 0:16:22.600 --> 0:16:25.400 I think what we will see as a real consolidation 0:16:25.440 --> 0:16:28.400 over the next couple of years, where a few winners 0:16:28.440 --> 0:16:31.720 will emerge in terms of you know, which blockchains are 0:16:31.760 --> 0:16:34.640 actually going to be the ones that people build applications upon, 0:16:35.040 --> 0:16:37.160 and the others probably will die off over the time. 0:16:37.360 --> 0:16:39.640 They don't have as many unique characteristics, or they're not 0:16:39.640 --> 0:16:42.560 going to outcompete, you know, the couple best ones. But 0:16:42.640 --> 0:16:45.000 what's the utility of the token? I mean, if you 0:16:45.160 --> 0:16:50.880 build um your business off of the Ethereum blockchain, you 0:16:50.920 --> 0:16:57.240 don't necessarily need to acquire Ether to do that, do you. Well, 0:16:57.320 --> 0:17:00.440 you might need to use Ether in order to silicate 0:17:00.480 --> 0:17:03.320 a transaction. So, for example, when you do an Ethereum 0:17:03.320 --> 0:17:06.880 based transaction, you need to use Ether tokens to pay 0:17:06.920 --> 0:17:10.480 the gas fees required to do a transaction, or to 0:17:10.680 --> 0:17:14.200 pay a smart contract to evaluate some function. So that's 0:17:14.200 --> 0:17:16.960 the sense in which you need the token UM. But 0:17:17.160 --> 0:17:19.560 there are also applications built on top of them where 0:17:19.560 --> 0:17:21.960 they use different tokens, they can convert under the hood, 0:17:22.320 --> 0:17:24.280 and so it's not necessarily that you need to own 0:17:24.280 --> 0:17:27.159 them yourself in order to interact with them, you know. 0:17:27.200 --> 0:17:29.359 But you have such an interesting background worked at some 0:17:29.400 --> 0:17:32.160 of the biggest market makers in the world, Jane Street, 0:17:32.240 --> 0:17:35.640 Citadel Securities, which is obviously is known for its relationship 0:17:35.760 --> 0:17:39.640 with Robin Hood. These days, I'm wondering if you think, 0:17:39.680 --> 0:17:42.320 and speaking of Robinhood, I'm wondering if you think crypto 0:17:42.800 --> 0:17:46.560 how much it's truly a way to start to get 0:17:47.240 --> 0:17:51.680 financial assets into the hands of more younger people who 0:17:51.760 --> 0:17:55.440 for a long time until now have not been trading, 0:17:55.600 --> 0:17:59.639 have not been paying attention to finances um and have 0:17:59.800 --> 0:18:03.840 had a mistrust for so many of you know, institutions 0:18:03.840 --> 0:18:08.159 in finance. Absolutely, it's not just a way and in 0:18:08.280 --> 0:18:11.240 theory and in practices is what empirically we're seeing. And 0:18:11.280 --> 0:18:14.760 there were um several polls done that showed that the 0:18:15.119 --> 0:18:20.840 percentage of people who were underbanked owning crypto was actually 0:18:20.960 --> 0:18:24.680 considerably higher than those that were banked. In addition, demographics 0:18:24.680 --> 0:18:27.280 that are you know, typically more minority demographics that are 0:18:27.560 --> 0:18:30.280 have either not had the same kind of affair access 0:18:30.280 --> 0:18:34.800 to banking and investment opportunities in the past, are disproportionately 0:18:34.800 --> 0:18:37.159 involved in crypto. So I do think that there's a 0:18:37.240 --> 0:18:40.320 there's a democratizing effect of crypto, and that it's so 0:18:40.520 --> 0:18:43.960 low friction, so low barrier to get involved to invest 0:18:44.520 --> 0:18:47.480 and I think that that's why it's so popular among 0:18:47.520 --> 0:18:50.400 young people. And also there are so many applications again 0:18:50.400 --> 0:18:53.359 of crypto. You know, it's not just about owning a 0:18:53.359 --> 0:18:56.000 bitcoin hoping that it goes up. Think about all the 0:18:56.040 --> 0:18:59.359 blockchain based gaming that we're seeing investments and including from 0:18:59.359 --> 0:19:01.600 our own company f t X. Think about n f 0:19:01.680 --> 0:19:04.359 t s and the the idea of having collectibles and 0:19:04.359 --> 0:19:06.919 collectible art and communities around them. These are all I 0:19:06.960 --> 0:19:10.639 think very appealing to the younger generations. Is the SEC 0:19:10.680 --> 0:19:12.640 you going to figure out a way to regulate this stuff? 0:19:12.800 --> 0:19:15.480 I mean, so far they've allowed a futures based e 0:19:15.600 --> 0:19:19.160 t F, which is I think pretty silly, um, but 0:19:19.480 --> 0:19:22.480 it doesn't really make much sense since it's an unregulated 0:19:22.480 --> 0:19:27.600 product to begin with. So it's a very good question 0:19:27.800 --> 0:19:32.160 right now. People might not know that cryptocurrency exchanges are 0:19:32.200 --> 0:19:35.159 not regulated the same way as a stock exchange or 0:19:35.160 --> 0:19:38.879 a futures exchange. They're regulated under the finn Send Money 0:19:38.920 --> 0:19:42.640 Services Business, which is not really the most appropriate regulatory 0:19:42.800 --> 0:19:46.200 regime for an exchange that can have millions of transactions 0:19:46.200 --> 0:19:49.159 per day happening, you know, by high frequency market makers. 0:19:49.600 --> 0:19:52.960 And so there's we are in constant dialogue with the SEC, 0:19:53.440 --> 0:19:56.480 with the CFTC. We believe that there is probably going 0:19:56.520 --> 0:20:00.240 to be some sort of joint jurisdiction between these two 0:20:00.280 --> 0:20:03.840 agencies of exactly what form we don't know, UM, that's 0:20:03.840 --> 0:20:06.480 going to be able to regulate these tokens because it's 0:20:06.520 --> 0:20:08.520 it's tricky. You know, for every one of these tokens, 0:20:08.520 --> 0:20:11.679 they have different characteristics. Some of them have characteristics of commodities, 0:20:11.880 --> 0:20:14.720 some of the characteristics of equities, and you know, we'll 0:20:14.760 --> 0:20:18.119 we'll see where the where regulation heads and then your future. 0:20:18.240 --> 0:20:20.159 It's a very interesting point. Brett, thanks so much for 0:20:20.160 --> 0:20:23.680 your time. Really appreciate it. Brett Harris and their president 0:20:23.880 --> 0:20:27.399 of f t X talking to us about the crypto world. 0:20:31.680 --> 0:20:35.200 Let's get over right now to Wendy Wong right now, 0:20:35.240 --> 0:20:40.000 head of Sustainable Investment Partnerships at New York Life Investments. Wendy, 0:20:40.000 --> 0:20:43.199 we were talking earlier about the trend in or the 0:20:43.600 --> 0:20:45.240 it's beyond the trend. I guess at this point the 0:20:45.240 --> 0:20:49.560 strategy of E s G investing. How has COP twenty 0:20:49.640 --> 0:20:52.679 six changed things for you? First of all, thank you 0:20:52.720 --> 0:20:55.040 so much for having me in for your interest in 0:20:55.280 --> 0:20:58.960 E s G and besting UM COP twenty Yeah, it's 0:20:59.000 --> 0:21:01.720 a bit clear that it's a hot topic UM and 0:21:01.840 --> 0:21:04.600 so you know, I think there's a realization that there's 0:21:04.600 --> 0:21:07.800 only so much that governments can do UM. But there's 0:21:07.840 --> 0:21:11.320 also a role that the private sector can play as well. Well. 0:21:11.320 --> 0:21:13.920 I'm wondering the private sector as far as it goes 0:21:14.040 --> 0:21:16.640 do you think that some of the biggest strides can 0:21:16.680 --> 0:21:21.879 be made there? Uh, well, you know, we always believe 0:21:22.000 --> 0:21:25.840 that when we work together for collective goal, good things 0:21:25.880 --> 0:21:28.439 could happen, and so that was the thinking between our 0:21:28.520 --> 0:21:31.160 i Q Dual Impact e t s. So it's meant 0:21:31.160 --> 0:21:34.439 to have a compelling investment thesis that is investing in 0:21:34.520 --> 0:21:36.600 some of these themes that are so important to us 0:21:36.720 --> 0:21:40.280 gender equality, climate, health and well being. But there's also 0:21:40.560 --> 0:21:43.679 UM a give back component as well. So we worked 0:21:43.720 --> 0:21:47.600 with a nonprofit organization for each of these new e 0:21:47.680 --> 0:21:51.080 t s and we reinvest our management fiece a portion 0:21:51.080 --> 0:21:54.280 of our management fees back to these uh these nonprofit 0:21:54.400 --> 0:21:57.440 organizations so they can continue doing the work they're doing. 0:21:57.480 --> 0:22:00.359 So it's a great partnership between the private during the 0:22:00.400 --> 0:22:02.800 public sector. So what are the themes? Talk to us 0:22:02.880 --> 0:22:04.959 more about the c t F product. What are the 0:22:04.960 --> 0:22:08.199 themes here? We have four themes UM that we have 0:22:08.560 --> 0:22:10.760 UM that are part of the i Q Dual Impact 0:22:10.800 --> 0:22:13.000 e t F. We have a health and well being 0:22:13.400 --> 0:22:17.680 theme that was designed with American Heart Association to help 0:22:18.280 --> 0:22:22.040 people live longer, healthier lives. There's a gender equality e 0:22:22.200 --> 0:22:25.880 t F that was developed with girls who code investing 0:22:25.920 --> 0:22:29.360 in UH companies, US companies that have demonstrated a commitment 0:22:29.400 --> 0:22:33.159 to gender equality. There's a Cleaner Transport UM. It provides 0:22:33.200 --> 0:22:36.399 exposure to global companies that are helping us move to 0:22:36.440 --> 0:22:43.000 a more environmentally efficient transportation technologies. That includes bikes, rails, UM, 0:22:43.040 --> 0:22:46.560 buses of course, electric vehicles. But it's also beyond all 0:22:46.560 --> 0:22:49.000 of that. It's sort of the grid and infrastructure that's 0:22:49.040 --> 0:22:51.920 needed to produce and UM support all of that, and 0:22:52.040 --> 0:22:54.800 the value chain UM. And then finally, we have an 0:22:54.800 --> 0:22:57.880 oceans themed e t F i Q oceans UM Clean 0:22:57.920 --> 0:23:00.399