00:18:40 · Anthony Pompliano
Ad[00:18:40] S1: Today's episode is brought to you by Arch Public. Arch Public has just expanded its agentic trading platform beyond crypto, so pay attention. This is a big one. Now they are automating strategies across stocks, commodities, and ETFs, and I think that this is gonna be huge. You can now automatically take profits when one market hits new all time highs and rotate that capital into other markets showing more opportunity. Whether you're rotating capital into AI stocks, gold, if you're investing in the S and P five hundred, or you're accumulating Bitcoin, Arch public brings real discipline and automation to your investment strategy. Additionally, they've launched a powerful new tax loss harvesting tool. With crypto being so volatile and its exemption from the wash sale rule, Arch public can offset gains with losses without compromising your long term positions. It's exactly what every serious investor does. Institutional grade automation that works across every major asset class. There's no more emotional trading, no more missing tax opportunities, just smarter, hands free execution of your preferred strategies. Go to archpublic.com right now. Connect with their team, set up a time, bring your account if you'd like, then you can learn what automated trading can do for you. Archpublic.com. When you think about other major themes that people are investing in, you know, AI is obviously probably one of the biggest. A lot of people who watch the show or listen to it, they're Bitcoin investors, and there's been a lot of talk of, like, the institutions are coming. What's interesting about the institutional world is you really work with everyone from family offices all the way up to sovereign wealth funds. And there's been a number of sovereign wealth funds that have started to buy Bitcoin via the ETFs. But in recent months, maybe the last year or so, Bitcoin has not been, you know, the hot kind of commodity. It hasn't been the asset that everyone is talking about. AI sucked a lot of the air out of the room. What are you hearing from these institutional investors when it comes to
00:20:19 · Ron Biscardi
[00:20:19] S0: Bitcoin? So, I will say, like, digital currencies have been a wild ride in my world for, like, five years now. We saw the, you know, the huge spike that happened and then the nuclear winter of, of crypto. I would say institutions have been curious about this for a long, long time. I think, generally speaking, where, you know, five or six years ago, there was a huge percentage of them who just thought Bitcoin is snake oil. Like, this is not real. This is never really gonna be an investable asset class. That has completely changed. I would... I don't really know anyone who says anything like that anymore. I think people now see that it is a completely legitimate asset class, but I I think a huge disappointment, frankly, of the Trump administration has been the inability to get regulations passed to make it institutional grade. You know, if you're if you're a portfolio manager for a sovereign wealth fund or for, you know, a multibillion dollar endowment or foundation, you need guardrails. You know? You're... You don't wanna put certainly a large amount of capital at risk into an asset class that you don't know has the proper guardrails. Like, our our public markets are incredibly well functioning. They're the best public markets in the world largely because, I mean, obviously, capitalism at the core of our system is the main driver, but you... They wouldn't be as successful as they are if it wasn't for the regulatory infrastructure that also protects investors and that sets up... You know, it's like you can't have a football game with no referees on the field. You know, you need rules and you need a system for all the players to play within. It needs to be fair. And we thought the Trump administration was gonna make more progress, I think, in this regard to to create that for the crypto industry. It hasn't happened. I think if it did happen, you would see a massive influx of institutional money come into this asset class that frankly, I... Will they dabble in it and throw small small checks, you know, small percentages of their overall portfolio into it? Sure. So, like, get more familiar with it. But... And it it is popular at our cap intro events. Know, we'll have 50 to a 100 funds that are in crypto or at least have a significant amount of their investment strategy in crypto.
00:22:56 · Ron Biscardi, Anthony Pompliano
And they get a lot of meetings with investors, but I don't hear the next step, which is stories of how those investors are writing billion dollar checks to go into those funds. There are some funds who have reached scale like that, but I think most of their capital is coming from family offices and individuals more so than pension funds and foundations, endowments, sovereign wealth funds, groups like that. We just need that regulatory infrastructure. And if we could do it, I think the asset class would absolutely explode. [00:23:32] S1: Now when you think about unlocking that capital, is it just a matter of, like, regulation and and kind of government related things, or are there other aspects that are important for for that capital to flow?
00:23:32 · Anthony Pompliano, Ron Biscardi
[00:23:32] S1: Now when you think about unlocking that capital, is it just a matter of, like, regulation and and kind of government related things, or are there other aspects that are important for for that capital to flow? [00:23:43] S0: I I think that is the number one issue right now. I think, you know, five years ago, they had... There was just a lack of information and education and understanding of the space. I think that has largely changed. I mean, I'll tell you in... I think it was in our 2022 event, we had... It was only 16 or 17 digital asset funds in our event. They got 800 meetings among them. That's when it really kind of hit my radar, and I said, wow. There is a tremendous amount of interest in this particular space. And what we... We went to the investors who were in these meetings and said, what was your interest there? And across the board, they were using these meetings to bring themselves up to speed. You know, everyone was curious about it. Everyone wanted to get educated on it. They still get, I'd say, like their fair share of meetings and our events, but but I think the number one thing investors are waiting for are these guardrails to give them comfort that they can invest safely. And then, of course, you know, like, the the recent Binance news is not doing the industry any favors. You know? It's it's... You... You've gotta you've gotta set up a system where things like that just can't happen.
00:25:00 · Anthony Pompliano, Ron Biscardi
[00:25:00] S1: Yeah. What I find interesting is on the retail side, the inflows to Binance have been higher than the outflows post event, which normally you wouldn't expect. But I do think that there is an, reinstilled confidence because Binance backstopped all the losses. So in a weird way, it's like Yeah. By by backstopping the losses, it's almost like Binance has like a self insured, you know, kind of fund that is gonna go. And and now, wait a minute. Well, if somebody else got hacked, they might not have backstopped the losses, but Binance is gonna do it. You know, there's precedent for that. And so maybe I'm safer trading on Binance because they're gonna backstop losses. It's a very weird psychological thing for the retail investor community. I don't think the institutions think that way though. Right? [00:25:42] S0: No. I think if you're an institution and you see that headline, that's terrifying. I mean, I have... Like, I can't think of an equivalent event in our mainstream markets. Right? Like, has a bank or [00:25:55] S1: a brokerage Silicon Valley Bank, like, going under or something? Going under, yes. Right?
00:25:55 · Anthony Pompliano, Ron Biscardi
[00:25:55] S1: a brokerage Silicon Valley Bank, like, going under or something? Going under, yes. Right? [00:26:01] S0: The government stepping in maybe? I I think you always have the risk that a a business can be mismanaged and and go out of business. Right? Like, bankruptcy is is a possibility. Whenever you're making an investment, you're you're underwriting that risk to some degree. But I don't... I can't think of a scenario where a major investment firm or bank was hacked and money was literally stolen out of their accounts. I I can't think of any scenario where that's happened. So I think if you're an institutional investor, you've got to report to an investment committee, a CIO, then the overall board has to approve it. I just think it's incredibly hard to do if you can't say, well, my assets are gonna be custodied at Goldman Sachs or Morgan Stanley or JPMorgan. You know? When when those guys are in the space in a big way, then I think you're gonna see the institutional investors have a much higher degree of comfort. But you're not gonna get those guys in the space in a big way until this other problem is solved. [00:27:07] S1: Yeah. I think that, I think that makes sense. Let's talk about private credit. Private credit obviously had some negative headlines. People were worried there for a little bit, but seems to have kinda cooled off in in some of that concern. What are you seeing there?