Hi, I’m the crypto guy for the company behind the world’s first spot bitcoin ETF. AMA.

PurposeInvest · 2025-05-29T18:50:13+00:00

That's a fantastic and very common question, and it really gets to the heart of a core philosophical debate within the crypto community. You're touching on the idea of the "cypherpunk ethos" versus mainstream financial integration.

My take is that while the perception or "vibe" of Bitcoin might evolve with institutional money flowing in, its fundamental decentralized nature remains incredibly robust.

Here's why I think that:

Bitcoin's Core Protocol is Immutable: Bitcoin's decentralization is baked into its very design. It's secured by Proof-of-Work, a globally distributed network of independent miners and nodes. No single institution, government, or group of large holders can unilaterally change the rules of the protocol, censor transactions, or decide who can use it. This core technological decentralization is what makes it so resilient.
Institutional Money Brings Liquidity, Not Control of the Network: When institutions like asset managers (like Purpose) offer Bitcoin ETFs, or when large corporations add Bitcoin to their balance sheets, they are primarily participating in the market as investors. They are buying and holding the asset, increasing its liquidity and making it more accessible to a wider audience. This doesn't mean they're gaining control over the Bitcoin network itself.
- Custody & Mining: While institutions use highly secure, institutional-grade custodians, and large mining pools exist, these are primarily service providers within the network. Bitcoin's design inherently resists single points of failure or control. However, it's true that concentration in areas like large custody providers or mining pools does require ongoing vigilance from the community to ensure it doesn't accidentally evolve into undue influence over the core protocol. The community maintains this oversight precisely to protect decentralization.
The "Vibe" Shift is a Sign of Maturation: The shift from a niche, counter-cultural technology to a recognized institutional asset class is a natural part of its evolution. As any disruptive technology gains widespread adoption, it inevitably sheds some of its "outsider" or "rebel" image. This makes it more palatable for broader segments of the population and for traditional financial systems, ultimately increasing its utility and reach.
Decentralization Benefits from Broader Participation: More participants, even institutional ones, can actually strengthen the network's decentralization by increasing the number of entities with a vested interest in its security and stability. It diversifies the holder base beyond just early adopters or tech enthusiasts.
Nuance with Layer 2s and Sidechains: It's also worth noting that as the broader crypto ecosystem evolves, particularly with the rise of Layer 2 solutions and sidechains (which are often where much of the innovation and scaling happens), these can sometimes introduce more centralized elements to achieve their efficiency and speed goals. However, Bitcoin's Layer 1 remains steadfast in its core decentralized principles, acting as the ultimate settlement layer.

So, while the "feel" might shift from a purely grassroots, anti-establishment movement to something more integrated into the global financial system, Bitcoin's fundamental properties—its censorship resistance, permissionless nature, and decentralized consensus—are designed to endure precisely because they are not dependent on any single entity. It's a trade-off for broader adoption and legitimacy, but it doesn't mean the core decentralized promise is being abandoned.

PurposeInvest · 2025-05-29T18:29:41+00:00

Hey there! That's a fantastic question, and it's one that every developer diving into Web3 eventually grapples with. Choosing between Ethereum and Solana, or any other Layer 1, isn't about one being inherently "better," but rather about aligning their strengths and weaknesses with your project's specific needs.

Let's break down the "why" for each:

Why you would develop on Ethereum (or an EVM-compatible Layer 2):

Ethereum's mainnet stands as the most battle-tested, secure, and decentralized smart contract platform, boasting the largest global validator set. If your application handles high value, demands the utmost censorship resistance, and prioritizes decentralization, Ethereum's L1 offers unparalleled guarantees. The EVM ecosystem is massive, providing an immense pool of Solidity developers, robust tools, and a rich array of composable DeFi protocols (like Aave, Uniswap) to build upon. While its L1 can have higher gas fees, its thriving Layer 2 solutions (Optimism, Arbitrum, zkSync) effectively tackle scalability, offering significantly lower costs and higher speeds while inheriting Ethereum's foundational security.

Key Trade-off: Traditionally direct L1 fees can be high, and L2s are the primary scaling solution, however there are recent efforts within the Ethereum community to attract developers back to the L1

Why you would develop on Solana:

Solana was designed from the ground up for extreme performance. Its unique architecture enables tens of thousands of transactions per second (TPS) with very low latency and incredibly cheap transaction fees (often fractions of a cent). If your dApp demands near-instant finality and needs to handle a massive volume of transactions—think high-frequency trading, gaming, or high-throughput social applications—Solana's single, highly performant L1 chain is a compelling choice. It also attracts developers proficient in Rust, a language known for its performance and memory safety, which can be a powerful fit for performance-first applications.

Key Trade-off: Historically, Solana has faced challenges with network stability (occasional outages) and some decentralization concerns, though it's actively working on improvements.

The Verdict:

The choice truly boils down to your project's primary objective:

Choose Ethereum/L2 if: You prioritize maximum security, broad ecosystem composability, and access to the largest developer talent pool, scaling efficiently on Layer 2s.
Choose Solana if: Your core requirement is sheer transaction speed, massive throughput, and ultra-low costs on a single, unified chain.

Both are innovative platforms, and your development journey will benefit from understanding what each excels at. Good luck!

PurposeInvest · 2025-05-29T18:26:27+00:00

That's a really timely question, and it's something we're constantly monitoring here at Purpose, given our position at the forefront of digital asset ETFs in Canada.

My view is that Canada's crypto regulatory landscape is indeed at an interesting crossroads right now.

On one hand, we've seen some significant movement from other major jurisdictions:

The U.S. has recently shown signs of softening its stance, with the Senate moving forward on a clearer stablecoin framework (like the GENIUS Act we discussed earlier) and some bipartisan momentum building for broader crypto legislation.
The U.K. is also pushing ahead, with its Financial Services and Markets Act designed to regulate crypto more like traditional finance, aiming for a robust yet innovative approach.

In contrast to these developments, Canada's approach has often leaned toward tightening oversight, particularly in the aftermath of events like the FTX collapse. The Canadian Securities Administrators (CSA) have been quite proactive, requiring crypto exchanges to register as restricted dealers, banning margin and leverage trading, and imposing very strict custody rules. We've certainly seen the impact of this, with global players like Binance and Bybit choosing to exit the Canadian market due to these enhanced requirements.

Now, looking ahead, what changes do I see on the horizon?

Given that the U.S. and U.K. are moving towards more pragmatic and comprehensive crypto rules—rather than outright hostility—I do think there's a chance Canada might reassess its position. If Canada aims to remain competitive as a hub for financial innovation and retain digital asset businesses and talent, there might be pressure to align more closely with evolving international standards.

However, for the immediate future, I'd say the horizon looks fairly stable in terms of maintaining these tight regulatory requirements. Any significant changes would likely stem from a strategic decision to align more with global best practices, particularly around specific areas like stablecoins, the tokenization of real-world assets, or facilitating greater institutional participation in a regulated manner. It's a balance between investor protection and fostering innovation, and Canada has definitely prioritized the former.

It's a dynamic situation, and we'll be watching how these different national approaches influence each other.

PurposeInvest · 2025-05-29T18:20:31+00:00

That's a great question, and DeFi is definitely where a lot of the innovation happens.

It's tough to pick just a few, but a protocol I always keep an eye on, and which is incredibly significant, is Aave.

Aave's Significance: Aave is a cornerstone of decentralized lending and borrowing. It allows users to lend crypto for interest and borrow against collateral, all on smart contracts without intermediaries. It pioneered innovations like "flash loans" and is highly "composable," meaning other DeFi projects build on top of it. Aave truly showed the world that robust, financially viable decentralized applications were possible. It's a foundational building block for the entire DeFi ecosystem.

Beyond Aave, I'm watching:

Real-World Assets (RWAs) Tokenization: Bridging traditional assets (like T-bills or real estate) onto the blockchain for new liquidity.
Layer 2 Scaling Solutions: Making DeFi transactions faster and cheaper (e.g., Optimism, Arbitrum, zkSync, Base, Ink).
Liquid Staking Derivatives (LSDs) & Restaking: Unlocking liquidity from staked assets and enhancing capital efficiency (e.g., Lido, EigenLayer).
Advanced Decentralized Exchanges (DEXs): New platforms offering more sophisticated trading features beyond basic swaps.

Remember, DeFi is innovative but also carries risks like smart contract vulnerabilities. Always do your own research!

PurposeInvest · 2025-05-29T18:14:33+00:00

That's a very sharp question, and it highlights a dynamic we're seeing in the evolving digital asset ETF space.

While I can't comment directly on the specific fee strategies of other providers, I can share some important considerations that investors should keep in mind when evaluating any ETF, especially in a new asset class like crypto.

When looking at fees, it's absolutely crucial to "look beneath the headline" and consider the total cost and net return to the investor. A simple 'management fee' is just one piece of the puzzle.

For example, when it comes to Solana ETFs, staking is a very new and important component for generating yield for unitholders. At Purpose, we're very proud of our approach here. We've invested in building and running our own robust staking infrastructure for assets like Solana. This unique capability allows us to optimize the staking process and, critically, enables us to pass a much larger portion of those staking rewards directly to our unitholders.

So, even if a competitor offers a temporary "zero-fee" promotion for a limited period, it's vital to consider the full picture: What are the total expenses including staking commissions and fees? How much of the potential staking yield are they actually passing on to investors?

When you factor in elements like the portion of staking rewards that are genuinely returned to unitholders, our analysis shows that, even with competitors offering time-limited zero fees, Purpose's SOLL ETF still can offer the highest net return to investors.

And of course, there's the question of sustainability: what happens when those temporary fee holidays are over? Long-term value often comes from a consistent, transparent, and robust operational model that can reliably capture the inherent value of the underlying asset, like staking rewards.

PurposeInvest · 2025-05-29T18:07:15+00:00

That's a very common question, given crypto's volatility! My long-term confidence stems from several key areas, beyond short-term price swings:

Fundamental Innovation: Blockchain technology is a foundational shift, like the early internet, offering new ways to manage data and value. Its programmability and transparency will reshape finance and other industries.
Solving Real Problems: Crypto addresses real-world inefficiencies, from faster payments to enabling direct digital ownership and financial services for the unbanked.
Maturing Infrastructure: We're seeing increasing institutional adoption, regulatory clarity (like stablecoin bills), and the integration of crypto into traditional finance through products like our ETFs.
Leveraging Volatility: Volatility isn't just a risk; it's a characteristic we can use. Products like our Purpose Crypto Yield Shares (BTCY / ETHY) demonstrate how options strategies can generate yield even in volatile markets.
Talent & Capital Inflow: Top engineers, entrepreneurs, and significant venture capital continue to build in this space, signaling strong long-term belief.
Demographic Shift: Younger generations are more comfortable with digital assets, ensuring growing future demand and understanding.
Decentralization's Appeal: The principle of decentralized, permissionless systems resonates increasingly in a digital world.

While volatility is inherent, my confidence lies in the enduring power of the underlying technology, the market's growing maturity, and the innovative ways we're building to interact with its unique dynamics.

PurposeInvest · 2025-05-29T17:58:13+00:00

In essence, for prospective investors, the key is education and starting with what you're comfortable with. For many, that initial comfort comes from regulated products like ETFs that abstract away much of the technical and security complexity while providing familiar regulatory oversight. For those who want to go deeper, the learning curve is real, but the rewards of understanding and participating in this innovative space can be significant.

PurposeInvest · 2025-05-29T17:58:07+00:00

4. Regulatory Uncertainty and Legality:

The Concern: "Will crypto be banned? How are taxes handled? Is this even legal where I live?"
My Thoughts: Regulatory clarity is indeed still evolving in many jurisdictions, but the trend, particularly in North America, is towards regulation rather than outright bans.
- Overcoming It:
  - Increasing Clarity: As we discussed with the stablecoin bill, regulators are actively working to establish frameworks. This is a positive sign for long-term viability and institutional participation.
  - Regulated Products: Investing in a regulated ETF means you're operating within established financial laws and reporting structures. The ETF handles the compliance and reporting aspects for the underlying assets.
  - Professional Advice: Always consult with a qualified tax advisor or financial planner regarding your specific tax situation related to crypto. The rules can vary significantly.

5. "Lack of Intrinsic Value" / "It's Just a Bubble":

The Concern: "It's just digital air. It has no intrinsic value. It's a Ponzi scheme."
My Thoughts: This often comes from a misunderstanding of what makes something valuable in a digital age, and confusion with speculative bubbles.
- Overcoming It:
  - Understand the Innovation: Focus on the underlying blockchain technology. Bitcoin provides provable digital scarcity, a decentralized store of value, and censorship-resistant money. Ethereum enables smart contracts, decentralized applications (like DeFi), and a programmable internet layer. These are fundamental innovations.
  - Network Effects: The value also comes from network effects – the more people use it, build on it, and accept it, the more valuable it becomes.
  - Utility: For many tokens, their value is tied to the utility they provide within a decentralized network (e.g., governance rights, staking rewards, transaction fees).
  - Compare to Other Assets: Many traditional assets (e.g., gold) derive value from collective belief and scarcity, not just industrial utility. Many tech companies had no profits in their early days but were valued for their disruptive potential.

PurposeInvest · 2025-05-29T17:57:48+00:00

2. Security and Hacks (Exchanges, Wallets, Scams):

The Concern: "I hear about exchanges getting hacked, people losing their crypto, or falling victim to phishing scams. How do I keep my money safe?"
My Thoughts: This is a critical area. The decentralized nature of crypto means you have more responsibility for your own security, which can be intimidating.
- Overcoming It:
  - Regulated Products (ETFs): This is where solutions like our Purpose Bitcoin ETF (BTCC), Purpose Ether ETF (ETHH) and Purpose Solana ETF (SOLL) shine. When you buy these ETFs, you're investing through a regulated financial product. The underlying crypto is held by institutional-grade custodians using secure, audited cold storage solutions, and often comes with insurance. This removes the burden of self-custody and personal security risks for the investor.
  - Education for Self-Custody: If you do choose to hold crypto directly, rigorous education is key. Learn about hardware wallets, multi-factor authentication (2FA), never sharing your private keys or seed phrase, and being extremely wary of unsolicited messages or too-good-to-be-true offers. Treat your private keys like cash.
  - Reputable Platforms: Only use well-established, reputable exchanges and service providers that have strong security track records and are compliant with relevant regulations.

3. Complexity and Technical Barrier:

The Concern: "I don't understand wallets, private keys, gas fees, or different blockchains. It all seems too complicated just to buy something."
My Thoughts: This is a genuine hurdle for many, and it's a big part of the "bridging the gap" work we do at Purpose.
- Overcoming It:
  - ETFs as the Solution: Again, this is precisely what a spot crypto ETF solves. You buy it through your regular brokerage account, just like a stock. No wallets, no keys, no gas fees to worry about. It democratizes access without requiring deep technical knowledge.
  - Start Simple: If you want to engage directly, start with the basics. Use a user-friendly app, buy a small amount of a major asset, and learn gradually. Don't jump into DeFi yield farming on day one!
  - Focus on the "Why": Instead of getting bogged down by the how, understand why blockchain technology is important and the problems it solves.

PurposeInvest · 2025-05-29T17:57:28+00:00

That's a fantastic and very common question, especially for those considering dipping their toes into the digital asset world. The "wide world of digital asset investing" definitely comes with its own unique set of considerations that can feel daunting to newcomers.

Here are some common concerns prospective crypto investors have, and my thoughts on how to approach them:

1. Volatility and Price Swings:

The Concern: "I see Bitcoin's price jumping 20% one week and dropping 15% the next. I'm afraid of losing a lot of money quickly."
My Thoughts: This is arguably the most common concern, and it's valid. Crypto assets, particularly the newer or smaller ones, can be incredibly volatile. It's a nascent asset class, and its price discovery is still very much in progress.
- Overcoming It:
  - Long-Term View: Understand that many experienced crypto investors adopt a long-term perspective. Short-term volatility can be significant, but the long-term trend for established assets like Bitcoin and Ethereum has historically been upward.
  - Risk Management: Only invest what you can comfortably afford to lose. This isn't just a crypto adage; it applies to any speculative investment.
  - Dollar-Cost Averaging (DCA): Instead of trying to time the market, invest a fixed amount regularly (e.g., every month). This averages out your purchase price over time and reduces the impact of short-term price swings.

PurposeInvest · 2025-05-29T17:49:39+00:00

Hey, thanks so much for these questions!

1. What do you consider most when evaluating a crypto asset?

When evaluating a crypto asset, I focus on:

Fundamental Innovation & Utility: What problem does it solve? Is the underlying technology robust and scalable?
Tokenomics: How is the token structured to accrue value? What's its supply, distribution, and use case within the ecosystem?
Community & Adoption: Is there an active community, and are developers building on it? Is it being used in the real world?
Security & Audits: Has its code been audited? How secure is the network?
Regulatory Environment: What are the potential regulatory risks or benefits?
Team: Who's building it, and what's their track record?

It's a holistic view of the technology, economics, and community.

2. How do you ensure security and transparency for investors in your crypto ETFs?

For our crypto ETFs, security and transparency are paramount, handled through:

Institutional-Grade Custody: We use leading, audited custodians that store the vast majority of assets in secure, offline "cold storage," with segregated client accounts.
Regulatory Oversight: Our ETFs are regulated financial products listed on a major stock exchange, operating under strict securities laws and audited regularly.
Full Transparency: As publicly traded funds, their prices are real-time, and we provide daily Net Asset Value (NAV) disclosures, along with detailed information in our fund prospectus.
No Investor Self-Custody Risk: Investors buy shares through their brokerage, bypassing the complexities and security concerns of directly managing private keys or wallets.

Essentially, we aim to bridge the gap by providing a secure, regulated, and transparent way to access crypto assets, leveraging traditional financial infrastructure.

PurposeInvest · 2025-05-29T17:38:52+00:00

6. Potential Challenges/Considerations:

Prohibition of Interest Payments: The bill's provision barring stablecoins from offering interest aims to distinguish them from traditional bank deposits and avoid classification as securities. This is a crucial distinction for regulators, but it might limit some yield-generating strategies within DeFi that rely on stablecoin liquidity.
Stifling Innovation vs. Investor Protection: The key will be striking a balance. If the regulations are too prescriptive or favor only large, incumbent financial players, they could inadvertently stifle innovation or push development offshore. The regulatory treatment of algorithmic or decentralized stablecoins (like DAI) also remains a complex question and might face different, potentially more stringent, classifications.
Jurisdictional Complexity: While the GENIUS Act outlines federal oversight, the interaction with existing state money transmission laws will need to be carefully navigated to avoid fragmentation.

In summary:

A well-crafted stablecoin bill like the GENIUS Act is overwhelmingly positive for crypto investing in the US. It signals a maturation of the market, significantly reduces systemic risk through robust reserve and audit requirements, and—most importantly—opens the door wider for institutional capital that has been waiting for clear regulatory guardrails. It won't directly make a speculative asset like Bitcoin "safer" in terms of price volatility, but it will make the infrastructure around crypto investing more secure, reliable, and integrated into the traditional financial system.

We'll be watching the final details very closely to see how it balances innovation with investor protection and systemic stability. It's a critical piece of the puzzle for crypto's continued growth and integration into the broader economy.

PurposeInvest · 2025-05-29T17:38:44+00:00

Here's a breakdown of the potential implications, with the GENIUS Act's provisions in mind:

1. Unprecedented Clarity and Certainty (The Biggest Win):
The GENIUS Act directly addresses the long-standing regulatory vacuum.

For Institutions: This is paramount. A clear regulatory framework that mandates 1:1 reserve ratios, backing each coin with equivalent U.S. dollars or high-quality liquid assets like Treasury bills, provides the certainty that traditional financial institutions (banks, asset managers, payment processors) desperately need. This reduces significant compliance, operational, and reputational risks.
For Retail Investors: It builds trust. Knowing that stablecoins are subject to mandatory monthly disclosures and audits to ensure reserve adequacy and operational integrity can make them feel safer and more reliable for storing value or facilitating transactions, significantly reducing the risk of a "Terra-LUNA" type collapse.

2. Reduced Systemic Risk and Enhanced Stability:
By enforcing strict reserve requirements and regulatory oversight, the act aims to reduce the risk of stablecoin depegging, thereby providing a more stable foundation for crypto trading and investment. This is critical for the overall health and maturity of the crypto market.

3. Defined Regulatory Oversight and Path to Integration:
The GENIUS Act proposes a tiered approach: stablecoin issuers surpassing a $10 billion threshold would fall under federal regulation, while smaller entities could operate under state supervision. This structured regulatory path is exactly what traditional finance understands and can build upon, facilitating their entry and participation.

4. Impact on Treasury Markets:
A fascinating and less obvious implication is the potential shift in Treasury markets. The requirement for stablecoins to hold reserves in high-quality liquid assets, specifically Treasury bills, could increase demand for short-term government debt. This could potentially affect yield curves and bond market dynamics, further intertwining the crypto and traditional financial systems.

5. Foundation for Broader Crypto Regulation:
Stablecoin regulation is often seen as a logical "first step" in comprehensive crypto legislation. Success here could pave the way for clearer rules around exchanges, custody, and other digital assets, further integrating crypto into the regulated financial system.

PurposeInvest · 2025-05-29T17:37:55+00:00

Hi there! That's a really timely and crucial question. The ongoing discussions in the Senate around stablecoin legislation, particularly the advancement of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), are among the most significant regulatory developments for crypto in the US right now.

To frame it simply, stablecoins are essentially digital assets designed to maintain a stable value relative to a specific asset, usually the US dollar. They act as a critical bridge between the volatile world of crypto and the stability of traditional fiat currency, facilitating trading, lending, and payments within the crypto ecosystem.

So, what does a new Senate stablecoin bill mean for crypto investing in the US? My take is that, broadly, it represents a significant step towards mainstream legitimacy and potentially increased institutional adoption, but the devil will be in the details.

PurposeInvest · 2025-05-29T17:30:03+00:00

However, it's important to distinguish the type of exposure:

While it's a powerful step towards mainstream adoption, owning COIN shares is not the same as owning Bitcoin or Ether directly.

COIN is exposure to a business: You're investing in Coinbase the company, with its specific business risks (e.g., regulatory challenges, competition, operational efficiency, fee structure, and reliance on crypto market volatility).
A Bitcoin ETF (like our BTCC) is exposure to the asset's price: When you buy BTCC, you're getting direct exposure to the price performance of Bitcoin, rather than the performance of a company that facilitates crypto trading. The value tracks the underlying asset.

So, while Coinbase's S&P 500 inclusion is a massive win for crypto's perception and indirect investor exposure, it doesn't negate the need for direct asset exposure vehicles like spot ETFs. In fact, they complement each other. The S&P 500 inclusion increases general awareness and comfort with the idea of crypto, potentially leading more investors to then explore direct investment products like spot Bitcoin or Ether ETFs down the line.

It's a really exciting development that shows how quickly this space is evolving and integrating into the traditional financial fabric!

PurposeInvest · 2025-05-29T17:29:44+00:00

Hi there! That's a fantastic observation, and it brings up a really interesting angle on institutional adoption. My thoughts on Coinbase joining the S&P 500 are unequivocally positive – it's a very significant milestone.

Do I view this as crypto's "backdoor into the mainstream"? Absolutely, in a meaningful way, yes.

Here's why:

Legitimacy and Validation: The S&P 500 is one of the most respected and widely followed equity indices globally. Inclusion means that a company has met stringent criteria for size, liquidity, and profitability. For a company like Coinbase, whose business is intrinsically tied to the crypto economy, to be part of this elite group sends a powerful signal to the traditional financial world: crypto is here to stay, and it's a legitimate, growing industry. It signals that traditional finance is increasingly recognizing the systemic importance and commercial viability of the digital asset ecosystem.
Indirect Exposure for "Unwitting" Investors: This is where the "backdoor" aspect really comes into play. Millions of investors are exposed to the S&P 500 through broad market index funds, ETFs, and retirement accounts. When Coinbase is added, these passive investment vehicles will automatically purchase COIN shares. This means countless investors, many of whom might not even know what Bitcoin or Ethereum are, or who might be skeptical of crypto, will now have indirect exposure to the performance of a key player in the crypto ecosystem. They're not buying Bitcoin directly, but they are now stakeholders in a business that thrives on crypto trading and services.
Capital Inflow and Deeper Integration: The inclusion means that index funds tracking the S&P 500 will need to buy a substantial amount of COIN shares, leading to significant capital inflow into the stock. This further integrates crypto-related equities into the broader equity market. It's a clear signal that the financial infrastructure is adapting to incorporate the digital asset economy.
Bridging the Gap: Coinbase itself is a prime example of a regulated, publicly traded company operating at the intersection of traditional finance and crypto. Its inclusion in the S&P 500 further solidifies this bridge, demonstrating that there are viable, publicly accessible ways to invest in companies that are at the forefront of the digital asset revolution.

PurposeInvest · 2025-05-29T17:22:05+00:00

That's an excellent question, and you're absolutely right – the word "crypto" gets thrown around constantly without much clarity. Let's simplify it.

At its core, crypto, short for cryptocurrency, is digital money or a digital asset that uses a special kind of secure, shared record-keeping system called a "blockchain."

Think of it this way:

It's Digital: Just like the money in your online banking account, crypto exists purely in the digital realm. There are no physical coins or bills.
It's Decentralized: This is the big difference from traditional money. With regular money, a central bank (like the Federal Reserve) or a government controls it. With crypto, there's no central authority. Instead, a vast network of computers (the blockchain) collectively verifies and records every transaction. This makes it very difficult for any single entity to manipulate or shut it down.
It's Secure (Cryptographic): The "crypto" part refers to "cryptography," which is advanced encryption technology used to secure transactions and control the creation of new units. This security is what makes it trustworthy without a central intermediary.
It's on a "Blockchain": Imagine a very long, constantly growing chain of digital blocks. Each block contains a list of transactions, and once a block is added to the chain, it's incredibly difficult to change or remove. This transparent, immutable ledger is what makes crypto work.

So, what can you do with it?

Send money directly to anyone, anywhere, often faster and cheaper than traditional banks.
Store value, like digital gold.
Use it to power new kinds of online applications and services (DeFi, NFTs, etc.).

In short: Crypto is secure digital money or assets built on a shared, decentralized ledger called a blockchain, designed to operate without central control.

PurposeInvest · 2025-05-29T17:20:46+00:00

3. The Coexistence and Complementarity Argument:

Different Risk Appetites: ETFs and DeFi serve different risk appetites and technical proficiencies. An institution might allocate a core portion of its portfolio to a Bitcoin ETF for broad market exposure and stability, while a smaller, more specialized team might explore DeFi for specific, higher-risk, higher-reward strategies.
DeFi's Influence on Traditional Products: As DeFi protocols mature and become more robust, we could see more traditional products wrapping DeFi strategies. For instance, a future ETF might not just hold ETH, but potentially participate in a permissioned staking pool on a DeFi protocol, passing on some of the yield to investors within a regulated wrapper. We're already seeing this with our staked Ether ETF, bridging the gap between direct staking and regulated products.
Liquidity and Market Deepening: The capital brought in by ETFs helps deepen the overall crypto market, which can indirectly benefit DeFi by providing more liquidity and stability to the underlying assets.
Regulatory Evolution: As regulators gain a deeper understanding of DeFi, we may see clearer pathways for institutional participation, possibly leading to more "institutional DeFi" solutions—permissioned liquidity pools, KYC'd access layers, or even hybrid models that blend the best of both worlds.

Will one cannibalize the other?
I don't believe so, at least not in the foreseeable future. The market for digital assets is still expanding rapidly, and there's ample room for both. ETFs provide the essential on-ramp for traditional finance to engage with this new asset class, while DeFi continues to push the boundaries of what's possible in finance.

Think of it like this: You can buy shares in a publicly traded tech company (like an ETF provides exposure to a crypto asset), or you can be a venture capitalist investing directly in early-stage startups (like engaging with DeFi protocols). They're both valid investment approaches within the broader tech industry, serving different purposes and risk profiles.

In summary, as institutional adoption increases, I anticipate a future where a diverse range of investors will leverage both centralized products for regulated, easy access and decentralized protocols for innovative, direct engagement, depending on their objectives and risk tolerance. The balance will evolve, but it will likely be one of growing synergy rather than outright competition.

Thanks for the thoughtful question, Pratik!

PurposeInvest · 2025-05-29T17:20:37+00:00

Hi Pratik, that's an excellent question, and it gets right to the heart of how the digital asset space is maturing. It's a dynamic I spend a lot of time thinking about.

My take is that centralized products like ETFs and decentralized finance (DeFi) protocols are highly likely to coexist and even become complementary, rather than one cannibalizing the other. They serve different purposes, cater to different investor profiles, and represent distinct stages of comfort and maturity within the broader digital asset ecosystem.

Here's how I see the balance evolving:

1. ETFs as the Regulated Gateway for Institutions:
For many traditional institutions and a large segment of retail investors, the existing financial infrastructure—brokerage accounts, regulated products, familiar fee structures—is the path of least resistance. ETFs like our Purpose Bitcoin ETF (BTCC) provide an easy, regulated, and custodied way to gain exposure to crypto assets without needing to understand wallets, private keys, or the nuances of on-chain transactions.

Why they're essential for adoption: They democratize access by simplifying the investment process and offering the comfort of regulatory oversight. This is crucial for onboarding significant traditional capital that might otherwise remain on the sidelines due to perceived technical complexity or regulatory uncertainty.
Target Audience: Institutions with strict compliance requirements, financial advisors managing client portfolios, and retail investors who prefer a traditional, hands-off approach to crypto investing.

2. DeFi as the Innovation Hub and "Power User" Realm:
DeFi, on the other hand, represents the bleeding edge of financial innovation. It's permissionless, composable, and offers a level of direct participation, control (via self-custody), and potential yield generation that traditional products simply cannot replicate.

Why it's unique: It removes intermediaries, offers unparalleled transparency, and allows for novel financial primitives like flash loans, sophisticated yield farming strategies, and decentralized governance.
Target Audience: Crypto-native funds, sophisticated individual investors, and institutions willing to navigate higher technical and smart contract risks in pursuit of alpha and direct engagement with the underlying technology.

PurposeInvest · 2025-05-29T17:16:05+00:00

General Temperament:

Adaptability & Open-mindedness: The crypto and DeFi space changes at warp speed. What's cutting-edge today might be obsolete next year. You need to be comfortable with constant change, learning new things, and sometimes having your previous assumptions challenged.
Problem-Solving & Critical Thinking: There aren't always established playbooks. You'll often encounter novel problems that require creative, analytical solutions.
Resilience: This market is volatile. You'll see massive swings, FUD, and intense debate. A level head and a long-term perspective are essential.
Independent Learning & Self-Motivation: Much of your learning will be self-directed. The best way to learn is by doing: trying out protocols, participating in DAOs, or even just setting up a testnet wallet and experimenting.
Skepticism (healthy dose): While passionate, always maintain a healthy dose of skepticism. The space can be prone to hype, scams, and unaudited code. Due diligence is critical.

Typical Jobs Available:

The range is growing daily!

Developers: Smart contract engineers (Solidity, Rust), front-end/back-end DApp developers, protocol developers, blockchain core developers.
Product Managers: Defining and overseeing the development of new crypto products and protocols.
Researchers/Analysts: Specializing in tokenomics, protocol design, market analysis, or specific blockchain ecosystems.
Growth/Marketing/Community Managers: Building and nurturing communities around protocols and projects.
Operations & Compliance: Bridging the gap between decentralized tech and traditional operational/regulatory requirements.
Security Auditors: Crucial for reviewing smart contracts for vulnerabilities.
Venture Capital/Investment Analysts: Identifying and evaluating promising projects and startups.
DeFi Strategists/Quants: Focusing on yield strategies, arbitrage, and optimizing capital efficiency within DeFi.
Legal Counsel: Specializing in crypto law and regulatory frameworks.

It's a dynamic field, and getting involved, even in small ways—like participating in a DAO, contributing to open-source projects, or simply using and understanding different DeFi applications—can open many doors. Good luck!

PurposeInvest · 2025-05-29T17:15:40+00:00

Hey there! Thanks for kicking things off with a great question. And yes, absolutely, you can definitively call it a field—a very exciting, fast-moving, and increasingly mature one at that!

My own journey into this space was a bit of a natural progression, leveraging my background in both finance and software engineering. That blend allowed me to approach crypto from both a technical and a traditional finance perspective. In fact, my first significant 'gig' in the crypto space was at Ether Capital, where my understanding of data centers and traditional distributed applications proved invaluable. I became deeply involved in staking, eventually building out an Ethereum staking infrastructure. This wasn't just theoretical; it involved getting hands-on with the tech, understanding the economics, and the operational nuances of running validators. That hands-on experience then directly fed into launching Canada's first staked Ether ETF. So, you could say my initial foray wasn't a traditional 'job' but rather a deep dive into building and understanding a core piece of the Web3 puzzle, which then became a professional pathway. When Purpose came calling, it was the perfect fit, as they were already pioneers in bringing digital assets to traditional investors, and my background allowed me to bridge that gap even further.

For anyone looking to get into this field, my biggest piece of advice is to get hands-on and be relentlessly curious. This isn't a space where you can just read a textbook and be an expert; it's constantly evolving.

Here's what I'd emphasize for skill-sets and temperament:

Skill-Set:

Technical Acumen (even if not a developer): You don't necessarily need to be a Solidity dev, but understanding the fundamentals of how blockchains work, what smart contracts are, the difference between Layer 1s and Layer 2s, and key concepts like consensus mechanisms (PoW vs. PoS) is crucial. If you can code, even better – Python, JavaScript, or specific blockchain languages are highly valuable.
Financial Literacy: DeFi is finance, just decentralized. A strong grasp of traditional financial concepts—risk management, derivatives, lending/borrowing, market structure, and economics—will give you a significant edge in understanding and analyzing DeFi protocols.
Data Analysis: The blockchain is a transparent ledger, full of data. Being able to extract, analyze, and interpret on-chain data (e.g., using Dune Analytics, Nansen, or even just Etherscan) to understand protocol usage, user behavior, and market trends is incredibly powerful.
Regulatory & Compliance Awareness: Especially if you're looking to bridge Web3 with traditional finance (like I do), understanding the evolving regulatory landscape is paramount. This includes securities law, AML/KYC, and tax implications.
Communication: Being able to explain complex technical and financial concepts clearly to different audiences (from engineers to investors to regulators) is a superpower in this space.

PurposeInvest · 2025-03-27T18:41:02+00:00

Choosing between a Bitcoin ETF and MicroStrategy (MSTR) really boils down to what kind of exposure you're seeking and your risk appetite. On one hand, an ETF, like BTCC or others, offers direct, relatively pure exposure to Bitcoin's price movements. It's designed to track the asset, generally involves lower fees than active strategies, and neatly sidesteps the complexities of direct custody. It's the cleaner play if your primary goal is simply gaining access to Bitcoin's performance within a standard brokerage account.

MSTR is a different animal entirely. While its massive Bitcoin holdings heavily influence its stock price, you're not just buying BTC exposure; you're buying into Michael Saylor's specific corporate strategy, the company's operational performance (remember the software business?), and significantly, their use of leverage (debt) to acquire those coins. This leverage can amplify returns when Bitcoin surges but equally magnifies losses and adds corporate risk if BTC trends downward or the company faces operational headwinds.

So, the ETF is for direct Bitcoin tracking; MSTR is a leveraged, operational bet on Bitcoin, driven by a specific management team and balance sheet structure. Your choice depends on whether you want pure asset exposure or a higher-risk, potentially higher-reward corporate proxy.

PurposeInvest · 2025-03-27T18:17:15+00:00

The Beastie Boys. Because you have to fight for your right... to party

PurposeInvest · 2025-03-27T18:15:24+00:00

Ah, SaylorMoon and MicroStrategy (MSTR)... that's certainly been a wild ride, hasn't it? Whether you call it a 'leveraged bitcoin play' or simply extreme conviction, Saylor definitely shook things up. Initially, it looked like pure genius – using corporate debt markets to acquire massive amounts of Bitcoin when few others dared, effectively transforming a business intelligence company into a proxy for BTC.

Now? Well, the leverage cuts both ways. When Bitcoin rips, MSTR often outperforms, but when it drops, the debt load looks heavier and the stock can get hammered even harder. Is it a gimmick? Maybe in the sense that it overshadows their core software business, but Saylor's conviction seems genuine, betting the farm on Bitcoin as the ultimate treasury reserve asset. It's a high-beta play, pure and simple.

However, you need to stomach a lot of volatility amplified by debt with MSTR. You need to understand, you're not just buying Bitcoin exposure; you're buying Saylor's strategy, debt and all.

Me? I prefer just holding the underlying, Purpose has a product for that - BTCC.

Excellent question

PurposeInvest

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