Jeff Park

So it allows new investors to consider Bitcoin that may have been waiting on the sideline or they're looking to buy it at a deep discount value.

And those types of kind of trading behaviors and

new investor capital formation that can only happen when there's a lot more volatility.

So I think we need these kind of drawdowns because it allows like new capital to also step in that resets their holding period.

That's the other thing.

When you buy Bitcoin, I know there are those that are out there that permanently plan to own it forever.

But the ETF channel investors are a little bit different.

I think these are more your professional investors that are in the business of portfolio construction and portfolio optimization.

So they are looking for Bitcoin to play a certain role.

And if it doesn't play the role, they're going to get out of it.

But that also means there's new investors coming in and it resets their IRR.

It resets to day zero.

So now they can underwrite it for two more years.

And you need to kind of always rotate and cycle amongst existing investors to new investors, because that's ultimately how capital graduates.

So I think volatility is really healthy and we should demand it on both sides.

And what you've seen is though, to your point,

The drawdowns in Bitcoin are no longer that violent in the way that it doesn't stay there for very long.

So this is the key.

When you have big liquidation events or macro resets like FTX, for example, there's some structural oversupply that comes to market where there's no bid and it remains suppressed for a long period of time.

And what you've seen with almost most of the drawdowns we've experienced is there's often a pretty quick bid.