Episode 2 Bitwise

Episode 2: Bitwise

Episode 2

Bitwise

Hunter Horsley is the co-founder of Bitwise. We cover his journey with the business, key lessons launching a business within the crypto space, and how Bitwise compares to traditional asset managers.

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[00:02:14] - [First question] - The history of Bitwise and what they do 

[00:04:29] - Some of the structures of their available funds

[00:05:47] - Why use a fund oriented structure compared to something like Coinbase

[00:07:09] - The governing investment and management philosophy of Bitwise

[00:09:07] - Are the yields distributed back to the customer?

[00:10:33] - Keys steps in a transaction chain of $1 invested in the Bitwise 10 fund

[00:12:43] - Overview of the OTC system and their trading volume currently

[00:14:12] - Cold storage, security, and his thoughts on self-custody

[00:16:12] - His thoughts on valuation and what makes a particular project worth holding

[00:19:13] - Managing the business below the topline and whether it’s similar to other asset management companies

[00:20:52] - Their sales, core customers, and go-to-market strategy

[00:22:43] - Ways advisors are using crypto and working in exposure for their clients

[00:25:25] - Lessons learned about selling to and acquiring RIAs

[00:28:40] - Being an educational company with index funds attached

[00:29:54] - Why are there seemingly no Bitwise competitors

[00:31:59] - Some crypto assets that might become index worthy in the future

[00:35:19] - Driving forces behind who will win and lose in this space

[00:36:54] - A major lesson learned while being an operator in the crypto market  

Bitwise

Introduction

Patrick
Today we're breaking down Bitwise. Founded in 2017, Bitwise is known for managing the world's largest crypto index funds, with over 1.2 billion in assets under management. In this breakdown, we cover the value proposition of Bitwise, how the business compares to traditional asset managers, and why there is a lack of competition today for crypto indexing. To help me break down Bitwise, I'm joined by co-founder Hunter Horsley. Hunter shares his journey with the business, key lessons launching a business within the crypto space and some interesting data points around investor adoption of crypto. I hope you enjoy this breakdown of Bitwise.

What Bitwise is and What It Solves

Patrick
So Hunter, when we last were together in person, we were in the library of a club that I used in New York city. And it was 2017 or something. You were probably managing 25 or 50 million to dollars. Today it's a much bigger number than that. And I think you've become the default in an interesting slice of the crypto ecosystem. Maybe you can begin by just describing the history of the business and what exactly it is you do. Because I think a lot of those out there listening, mostly professional investors as an audience, will be really interested in this take on this emerging ecosystem.

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