Bitcoin ETFs on Track for Worst Month of Withdrawls

So, James, Bitcoin ETFs are seeing record outflows. Strategy is pulling back. What do you make of that combo, and how dangerous is that? Yeah.

I mean, these are the two things that were the buyers over, you know, the preceding months from April through October, at least the biggest known buyers. But you gotta also realize when they were buying, if you look at the on chain data, we saw a

lot of what would people refer to whales, the real big holders, private holders of Bitcoin. You can see that a wallet's on chain and they were selling. So, obviously, it's something to pay attention to.

This month is pretty bad. I we're actually at 4,300,000,000 with the outflows that we saw yesterday that weren't included in that report yet. So it's it's not looking good. But, you gotta take you gotta take a step back

and look at what this is. Right? At the peak through October, these things had taken about $63,000,000,000. They took in $30,000,000,000 from last April through October.

So they took in a ton of money. Yes. They're seeing outflows, but it's not like everything is running for the exits. It doesn't look good right now, but time will tell.

You and, Erik and your team always make that point that, yes, we're seeing outflows to what you just said, but then overall, we're seeing still a $100,000,000,000 in assets. I wanna pivot now to strategy. I mean, strategy has been one of this it's been

the ballast in the crypto ecosystem as the thing that will never ever ever sell. And now they're sell they're saying that they're willing to sell. How do you read that, and what do you think

changed strategy's investment case? Yeah. I mean, strategy went from doing nothing but a Bitcoin treasury company. They were selling shares of their company to own Bitcoin.

They were selling convertible debt to this preferred share model. So they have something called STRC. They refer to it as stretch. That has completely upended things. They now have monthly dividends they need to meet.

So it's made things more complicated. He's trying to basically create, like, some sort of capital curve or risk curve for Bitcoin. A lot of people were saying this was ultimately going to happen once Sailor went down this route, and it

looks like that is what they're gonna have to do. It they have a long lead time. And, Obviously, their bet is that the reason they're doing this is Bitcoin is gonna continually go up over the long term.

But, obviously, they're gonna run into trouble in the near term, and that's what we've seen over the last few weeks. So then do you think that this is more disciplined treasury management or maybe a sign that maybe the old

model doesn't work anymore? I mean, this is definitely disciplinary. This this is more disciplined treasury management of what they were doing. Like, when they signed up to be distributing these dividends,

they're they're it's a it's now at a 12%, annual dividend on stretch specifically. They have a bunch of other things. They kinda changed the calculus of how this thing works. He's trying out.

This is the first time somebody's doing something like this. My view all along is I kind of view these premiums and discounts in a similar way to closed end funds. So there are times where strategy or MSTR was trading