Bitcoin ETFs begin trading

Bitcoin ETFs begin trading, with several of them already in the red. CNBC’s Bob Pisani joins us with Bitwise Asset Management CIO Matt Hogan to discuss the sector. The Investment Committee also debates their top picks in the sector.

>>> WELCOME BACK TO “HALFTIME.” BITCOIN ETFs ARE TRADING. SEVERAL OF THEM ARE IN THE RED, THAT INCLUDES THE BITWISE ETF. TO BOB PISANI WITH THE CIO. BOB, OVER TO YOU. >> MATT HOGAN IS HERE. IT FINALLY HAPPENED, HOW MANY YEARS, 11 YEARS WE’VE BEEN WAITING.

BITWISE, HERE IT IS TRADING HERE, THE BITCOIN ETF. YOUR THOUGHTS ON THE TRADING. TELL US HOW THE VOLUME, THE DEMAND, THE SPREAD. >> THE LOWEST COST BITCOIN ETF TO MARKET, 20 BASIS POINTS ON BIT B. IT HAS EXCEEDED OUR EXPECTATIONS. TENS OF MILLIONS OF DOLLARS IN

TRADING IN OUR ETF. SPREADS ARE TIGHT. THERE’S A LOT OF DEMAND ON THE BUY SIDE. YOU’RE SEEING SOME SLIGHT PREMIUM. IT’S ALREADY THE LOWEST COST WAY TO ACCESS BITCOIN I THINK AMERICAN INVESTORS HAS EVER HAD. >> 2.5 MILLION SHARES CHANGING HANDS. HERE IS GRAY SCALE.

20 MILLION OVER — NORTH OF 20 MILLION OVER THE I-SHARES. YOU CAN EXPLAIN THIS TO US. THERE’S HUGE DEMAND, PEOPLE ARE JUST COMING IN. WHY IT’S SLIGHTLY WIDER SPREAD. >> THAT’S A PRETTY GOOD SPREAD WHEN YOU PAIR IT WITH BIT Bs EXPENSE RATIO.

DEMAND ON THE BUY SIDE IS WHY THE ASK IS WHERE IT IS. THESE ETFs SHOULD TRADE A FEW PENNIES WIDE. SOME PEOPLE ARE GETTING IN EARLY. >> A LOT OF PEOPLE ARE ASKING ME, DON’T THESE TRACK BITCOIN. EXPLAIN WHY, IT SHOULD TRACK BUT THIS IS NOT THE RIGHT DAY.

>> THESE WILL TRACK VERY WELL OVER THE LONG TERM. THEY’RE BUYING AND HOLDING IN A CUSTODIAN. MOVING INTO LOWER PRODUCTS MORE DEMAND ON THE BUY SIDE. THESE ARE PROBABLY THE EASIEST WAY FOR PEOPLE TO GET PEACE OF MIND BUYING BITCOIN THAT HAVE EVER EXISTED. IT’S DAY ONE.

THERE WILL BE 1,000 DAYS OF IT. IT’S A VERY EXCITING MOMENT. >> YOU SHOULD BE HAPPY. THE OTHER NINE ARE ALSO DOING WELL ON TOP OF THAT. MATT HOGAN, THANK YOU VERY MUCH. ALWAYS APPRECIATE IT. FRANK, BIG DAY. >> BOB PISANI, THANK YOU VERY MUCH.

SO EARLIER TODAY WE HEARD FROM THE GRAY SCALE CEO ON “SQUAWK BOX” THIS MORNING. IT IS THE PRICIEST PRODUCT ON THE MARKET WITH THE HIGHEST FEE. HE WAS PRESSED ON HOW HE PLANS TO COMPETE. HERE IS WHAT HE HAD TO SAY. >> WE’VE BEEN PREPARED FOR

MULTIPLE SPOT PRODUCTS. IT HAS BEEN THE PRODUCT THAT HAS FORGED THE PATH TO COME TO MARKET. OUR GUTS, OPERATIONS, DISCLOSURES, INVESTORS SHOULD HAVE CHOICE IN A VERY DIFFERENTIATED WAY. IT IS GOING TO BE AS OF THIS MORNING THE SECOND LARGEST SPOT COMMODITY ETF IN THE WORLD.

IT HAS $28 BILLION OF ASSETS UNDER MANAGEMENT AND OTHER ISSUERS MAY TRY AND DIFFERENTIATE ON FEES FOR GBTC, IT’S ABOUT SIZE, LIQUIDITY AND TRACK RECORD. >> GBTC DOWN HALF A PERCENT RIGHT NOW. BRYN, YOU OWN THE BITCOIN TRUST. YOUR THOUGHTS RIGHT NOW.

>> I THINK IT WAS BUY THE RUMOR, SELL THE NEWS. I DO THINK IT’S IMPORTANT ALL OF THESE OTHER TEN OTHER ETF PROVIDERS OWE A HUGE DEBT OF GRATITUDE FOR ACTUALLY SUING THE FTC HAVING THE COURTSIDE WITH THEM. ABOUT 28 BILLION IN GPTC CONVERTED.

A LOT OF EMBEDDED CAPITAL GAINS AND WILL BE VERY STICKY. WE KNOW WHAT HAPPENS TO FEES THEY GET COMPRESSED. THEY’VE BEEN A VISIONARY IN THE SPACE. THEY WILL KEEP THEIR FEES THERE AS LONG AS THEY CAN. >> AND $2 MILLION A DAY.

I THINK IT WILL BE REALLY FUN TO WATCH. A MONTH FROM NOW SOME WILL CAPTURE THE ATTENTION OF ADVISERS LIKE MYSELF. THAT WILL BE ONE HORSE RACE. THAT WILL BE A DIFFERENT RACE. WE SEE EXAMPLES IN A LOT OF DIFFERENT ASSET CLASSES. I DON’T THINK THERE WILL BE TEN

OF THEM. >> AN I.R.A. WILL MAKE SOMETHING LIKE THIS? >> WE WERE TOO AHEAD OF OUR TIME. WE LAUNCHED WITH WISDOM TREE RIGHT BEFORE SAM BANKMAN-FRIED. WE HAVE CLIENTS THAT ARE INTERESTED. THOSE ARE THE CLIENTS WE ALLOCATED. LAST YEAR WAS A GOOD YEAR.

WE DON’T SAY YOU SHOULD DO THIS. WE HAVE A SOLUTION IF PEOPLE WANT TO DO IT. IT’S AN