Hashdex’s Bruno Caratori on DEFI, Spot Bitcoin ETF Competition

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On this episode of ETF Prime, host Nate Geraci speaks with a trio of individuals discussing several different ETF-related topics. His guests include VettaFi’s Roxanna Islam who shares her take on the spot Bitcoin ETF race. Geraci also speaks with Hashdex’s Bruno Caratori who discusses what separates his firm from the others in the spot Bitcoin ETF competition. To close the podcast this week, Geraci brings on Tema’s Maurits Pot to discuss the firm’s actively managed ETF platform.

The Spot Bitcoin Race

To open the podcast this week Geraci brought on VettaFi’s Roxanna Islam who gives her take on how the spot Bitcoin race will play out. Geraci first mentions how he feels that this week could be the week that this spot Bitcoin race finally ends. Geraci then asks Islam for her take on how she feels about this contest possibly coming to a close.

“It is really weird to think that this might be coming to a close finally. It’s been going on for so long,” Islam shared.

Islam also mentions that she has mixed feelings about this race ending, because of the constant coverage she has done on the topic throughout the approval process. She mentions that although she is excited to begin to cover other areas of the ETF market this was an exciting topic to cover throughout the approval process. Geraci mentions that he shares a similar sentiment that Islam does concerning this race ending.

Will These Products Get Approved?

Geraci then dives in-depth into where the market currently stands in this race to release this style of product. He highlights that there are currently eleven outstanding products waiting for approval. Geraci then shares that the expectation is that the SEC staff will vote on the approval or denial of these products on January 10. He then asks Islam if she expects these products to get approved or not on that day.

“Yeah, I mean I was already in the camp that they were going to be approved a while back,” Islam shared.

She named Grayscale’s win against the SEC, and the release of the Ethereum Future products as the deciding factors in her ultimately believing that they would get approved. In addition, Islam shares that the SEC has been in constant contact with many of the issuers that have products waiting for approval. She feels that the SEC wouldn’t squander their time and resources like that to just deny these products.

Additionally, the duo explores the competition dynamics of these products, the demand for these products, and more.

What Separates Hashdex in the Spot Bitcoin Race

The conversation stays in the land of cryptocurrency when Geraci brings on Bruno Caratori, the Co-founder and COO of Hashdex. Geraci opens the conversation by mentioning that Hashdex is one of the eleven firms that currently have a product pending approval in the spot Bitcoin ETF race. Caratori shares that the entire approval process that he and his firm have gone through has been extremely hectic. However, he also feels it has been extremely rewarding as well. Geraci then asks Caratori to give his take on how Hashdex’s sole focus on cryptocurrency separates them from other firms who also have pending products.

“We see ourselves, a lot, as evangelizers of the technology and the asset class,” Caratori said.

He shares that his firm’s experience in solely focusing on cryptocurrencies as an asset class is something that will help investors and advisors become more comfortable and confident with the product. Nonetheless, Caratori shares that seeing some of the larger asset management firms taking a keen interest in this industry is a good sign for the asset class at large. Overall, Caratori is excited about the possible approval of the spot Bitcoin products and that Hashdex will get to be a part of it for years to come.

Additionally, the duo discusses the conversion of the Hashdex Bitcoin Futures ETF (DEFI), Bitcoin’s role in an advisor’s portfolio and more.

Tema’s Actively Managed Platform

To close this week’s podcast Geraci brings on Maurits Pot, who is the founder and CEO of Tema ETFs. Geraci mentions that Tema burst onto the ETF scene when it released a unique active and thematic platform. He then asks Pot what he and his firm were trying to solve when they released this product.

Pot first mentioned that when he was originally looking at the ETF market, he felt that the industry was extremely passive and that there was a lack of precision, diversification, and risk management in several different areas. All of these were areas that Tema was looking to solve when they built their platform.

“What we try, and offer are exposures that do not exist in the markets today,” Pot said.

Pot named core equities, life sciences, and general thematics as key areas of the markets that he and his firm are currently trying to focus on. He also names these areas as places where they feel they can outperform others by using their investment experience. Furthermore, Pots explains why he and his firm are focusing on active versus passive.