 Hi, everyone. Today I'm here with a very special guest. I'm here with Lea Wall. She is the CEO of Valkyrie Investments. Valkyrie Investment is a digital asset investment firm and one of the very few funds to have launched a US Bitcoin Futures Fund. In today's interview with Lea, we will be discussing what Valkyrie Investments has in store for the future, along with the fact that the firm now has over $1 billion in assets under management and why it's so important to have green energy mining in place right now. Hi, Lea. How's it going? Good. Rachel, thanks so much for having me on. So, first question. What are the goals behind Valkyrie Investments? What problems is the company solving and kind of just go into details there for us, please? So, Valkyrie, and I guess with my shirt especially today, we're very focused on making digital assets accessible to mainstream investors through funds. So, we have our family of Bitcoin and Bitcoin adjacent ETFs, protocol trust, SESMAs, and the DeFi hedge fund. So, we're really again highly focused on taking the mystery out of investing in Bitcoin for investors that maybe are new coiners or no coiners and other digital assets to ensure that everybody's able to participate in the ecosystem. I guess it would also be useful for you to kind of explain the importance of a Bitcoin ETF and why that's important, especially now. You know, I think that a Bitcoin ETF is exceedingly important. It's definitely been a conversation that we've had since the Winklevoss first filed, right? And we've been all following this industry of when do we finally get to the holy grail of spot? I think that we can't hold our breath right now on when the Bitcoin spot ETF will be approved, although it definitely is our mission to ensure that we finally get there one day and we're fighting hard and working hard with the regulators to get there. But in the interim, you do have a variety of ETFs. You have the futures base with us, ProShares, and VanEck. You have the thematics, and there's a good amount of thematics in the space. And I think what's interesting about that is again, an ETF is a very efficient vehicle and a very familiar vehicle for a lot of institutional investors. And that's also because they slot very specifically on platforms. So they're easy to invest in for a lot of institutional investors. So there was large barriers to buy digital assets beyond just a knowledge gap. And that very much was just based on the ability to buy it within their platforms and therefore allocate for their discretionary accounts. So I think the importance of the Bitcoin ETFs from the variety, futures, equities, et cetera, being approved this year is again, just there now is access to this asset class for many folks that there simply wasn't before. So what does this year look? What does the next five years look? And when we finally get spot, I think we're not, at least I'm not a soothsayer. But I think the good opportunity is that there already are opportunities that are available to these investors. And hopefully we'll see those different ETFs morph in ways that just become more efficient, more accessible, and more optimized as new regulation passes. Can you just comment on those challenges when it comes to Bitcoin ETFs? I think that the lack of clear regulation has been one of the biggest challenges. But I do think we have an opportunity to help shape that regulation through conversations with the SEC. And they have shown a willingness to adopt the rules that foster innovation rather than stifle it. So I think that, albeit the authorities are definitely being curious and deliberate, they are making a genuine effort. So for us in the industry that love it, like us on the call, we are building the financial system of the future. We believe in this powerful asset that has so much opportunities and it's barely a decade old. If you think about just historicity, it took hundreds of years to build traditional financial markets. So this isn't going to happen overnight, but I think we just have to remain patient and assist with education. Right, definitely. In terms of things specific that Valkyrie is doing with education, and maybe I don't know if you're even working with the regulators, can you kind of discuss some of those initiatives that you may have in place right now? We have been in conversations with the regulators. We filed our Bitcoin spot ETF way back in January 22 of last year. So we've been in the race a good deal at this point. And they've been very receptive. So from simply conversations to some of the more formal education that we provided Valkyrie, we do webinars for financial advisors. That's weekly. We do content pieces from our CIO. We have two different podcasts. We do as much as we possibly can. And that really spans both granular looks at various technology pieces of the ecosystem. And we call that our spotlight series to also financial trading and markets. And we do our analysis from Josh, our head of research to again, more of the high level macroeconomic from the seat of the CIO. And then again, these these webinar series that are specifically targeted and for financial advisors and RA's. And they're an interesting format because the financial advisor and RA is asking our CIO all the questions that they have that are barring them from buying Bitcoin right now. So I think it provides a unique lens specifically for our industry of a lot of the larger pools of wealth that haven't yet bought in of to really ask, you know, the questions that they really have can voice their concerns. And that's maybe some of the more impactful education that we try to provide. Right. And that's so important. Leah, I don't know if you can kind of maybe just give an example of what some of those questions are just on a very basic general level. But I'd be curious to know because, you know, it's always good to know what the traditional world of finance is thinking when it comes to buying Bitcoin and other digital assets. Absolutely. Well, you know, the common question is still around volatility. And how do you allocate accordingly? An interesting aspect of where we are right now in portfolio management is that the typical structure of a portfolio is definitely seen as bunk. So there is this opportunity where financial advisors, RA's and other money managers understand that especially given the fixed income state that we're in right now, that we need to create a new paradigm and really a paradigm shift for what portfolios look like. So the questions really do get granular of how do I even think about this from a 60-40 perspective? Is it, you know, really classified as an alternative investment? And if so, how should I even think about it within that strata of an asset class? Is it akin to venture capital with liquidity as an example? So from how to buy it to how do I allocate to it to some of the more basic questions of simply what is Bitcoin? And I've heard the question, is Ethereum also Bitcoin? So there's also just some very basic questions that still need to be answered. And I think sometimes in our industry, we believe and expect a lot of individuals to be as far down the rabbit hole as we may be. But really, some of the conversations are still at the very basic level. I also recently read, I think it was on your Twitter, that Valkyrie recently announced that it passed $1 billion in assets under management. So what does that mean for the crypto space in general? I think simply put, the crypto space is growing. You know, I think that again, since we are an asset manager, it shows that institutional interest is absolutely growing. It was definitely a stark difference from when Stephen and I co-founded Valkyrie and were desperately pitching various platforms to speak to us about our funds last year to what the end of the year looked like and the various conversations that we were able to have with legacy institutional players who were legitimately trying to figure out their crypto strategy and they still are. So I think as a whole for the crypto industry, it's a huge sign and a huge signal that again, large pools of wealth that have been on the sidelines are definitely either buying or really very seriously looking to allocate. And as many do know, institutional investors often dip their toes in first. So I think we need to remember that it's still a marathon, not a sprint. And we do have a downturn in the market, but that doesn't mean that there aren't very large money managers who have already started their allocations and are just seeing how it works out. So if we think from a long-term perspective, I think it's very bullish indeed. Now, I've also been reading a few things about Bitcoin mining and Bitcoin mining ETFs. Can you kind of discuss that point as well? Yeah, absolutely. And ours is a little interesting because we are trying to highly focus on green energy. So specifically what we want to focus on and bring home is really battling against that negative narrative that so many media outlets and people believe that miners are using up way too much electricity. So just as an example, Bitcoin miners use more energy from renewable sources than the broader US electric grid. Not that many people outside our universe know that. It's 58% green energy versus the US grid is only 31%. As we know, they've relocated to locations where green energy sources are including wind, solar, hydroelectric. So that's Texas, Wyoming, Washington state. And really in total, Bitcoin miners are only using 0.05% of the global energy consumption. So you're absolutely right. Bitcoin miners, ETFs, there's a few, we were very excited to throw our hat in the ring. And we definitely wanted to focus on educating the public through this ETF on the renewable sources that Bitcoin miners are focused on as well. I have heard though that infrastructure and all of that can be challenging when it comes to mining. I don't know if you have any thoughts on the challenges there, but if you do feel free to shed some insights on that. There definitely are challenges, but I think what's interesting about especially our industry and miners is just how nimble they've shown themselves to be, whether it's moving from full nation states such as China, or again, moving very quickly to other sources of cheaper electricity, whether it's a hydroelectric plant in upstate New York, et cetera. So I think that there definitely are challenges. And again, I think that's also related to us having a nascent industry with who knows what miners will look like in five to 10 years. But I am still bullish because I think that miners especially have shown their elasticity to move to places that are more favorable to their operations. We're also seeing a trend right now of Bitcoin mining companies going public. Do you have any thoughts on that? I think that the trend is going to continue and I think it's a very interesting play. Obviously, going public provides a great opportunity for liquidity. And as we know, these companies are expanding exponentially. So I think that at least from a Valkyrie perspective, we are taking a very close look at who may be going public this year and how, of course, the companies that are currently listed are doing. But it does make sense again in such a high growth market with large op costs to take advantage of that opportunity. Of course, I have to ask you about your thoughts on NFTs and Web3 because that's the trend that we're seeing right now. So what are your thoughts on the NFT space? I think that there's a lot of potential in this space, but also a lot of misunderstanding. So artists, musicians, writers, athletes, sports teams, and others can use NFTs to monetize their work through new revenue streams previously unavailable. They can connect directly with their fans and potentially provide unique content and experiences. But really, we're only at the very beginning of NFTs and there's a long way to go. And we think, I definitely think so, that the potential is limitless. I just think that there's sometimes a lot of confusion around NFTs versus Web3, which is obviously very different and the metaverse. And a lot of that is being lumped into one, which again, as we know from being in the crypto ecosystem, that often can happen. And it definitely takes a little time to start to differentiate the various projects and how they are different. Can you just explain how they are different? Because for instance, when we think of NFTs, or a lot of the times, we think of NFTs, we see some of these metaverse platforms incorporating those NFTs into those platforms. So for instance, wearables or swords with different types of powers. So how can we differentiate between NFTs in the Web3 space, in your opinion? I think that Web3 is a decentralized internet. And I think the metaverse is a series of virtual worlds. So if I try to distill it down, a lot of investment has gone into Web3 platforms. I think that the metaverse is actually much more important. So I think that many people do confuse those two and often associate them with each other, but they are different. And a fully decentralized internet will definitely take quite a while to recognize and realize from a technological standpoint. But the metaverse already exists and has already become quite lucrative. If you look at J.P. Morgan opening a branch in the metaverse to the Bahamas, open to virtual embassy, and obviously Facebook pivoted entirely to becoming a metaverse company. I think that those use cases are already here. I mean, I think, though, we also have to consider, because it's interesting, you mentioned about J.P. Morgan, and there will be, I believe, more banks, traditional banks, coming into the metaverse and opening branches there. But it's still, there's this lack of regulation, which I think would make it very difficult for these traditional financial players to enter the metaverse. What are your thoughts on that? I think that that's probably true. And I think that probably goes back to our previous conversation about lack of regulatory clarity. So definitely interesting point and something we'll be watching as well. I think that more and more legacy players will attempt to utilize this opportunity of people being very interested in the metaverse and wanting to engage in the metaverse. So it will be interesting when more regulations come down the bike. I know that one question all of us may be wondering is now that institutions are getting involved with crypto, is centralization kind of being exposed or is crypto still decentralized? What are your thoughts on that? I think that that's a tough question and the right question. I think that Bitcoin will always be decentralized, no and ifs or buts. And I think that that's what we love about it. I think, though, that as more institutions start to get involved and as more regulation starts to be crafted, I think that there will be a tendency for centralization across a couple of the projects for sure that I think will understand that they can find more opportunities by being more centralized. But in regards to Bitcoin, I'm not so concerned, even if they're put in a regulated wrapper. Of course, I have to ask you, what is your Bitcoin price prediction for 2022? Always a good question. We are thinking that around 70K by the end of the year, we are bullish. However, right now the environment is just not great. We're very much watching traditional equities and Bitcoin is still a risk off and altcoins typically perform even worse than Bitcoin as we've seen in the past. So we're very much watching for more March 12th types of events, but we are very bullish for the second half of the year and especially Q4. So sounds like we should just hold tight, but we're shooting for 70K by the end of the year. Guys, thanks so much for having me on and have a great day and thanks again.