Bitcoin has become Wall Street’s favorite asset, says Anthony Pompliano

Anthony Pompliano, Pomp Investments founder, joins ‘Squawk Box’ to discuss the spot bitcoin ETF market one month after launch, state of bitcoin at large, and more.

>>> WELCOME BACK TO “SQUAWK BOX,” THE PRICE OF BITCOIN CROSSING BACK OVER THE $48,000 LEVEL OVER THE WEEKEND, ONE MONTH AFTER THE LAUNCH OF THE SPOT BITCOIN ETF, THIS MORNING TRADING SLIGHTLY LOWER: JOINING US NOW ANTHONY POMP LEAH KNOW. WE TALKED ABOUT SELLING THE NEWS

OR SELLING THE RUMOR, BUYING — BUYING THE RUMOR, SELLING THE NEWS, BUT NOW WE’VE COME BACK TO BUYING. >> YEAH. I MEAN, LOOK, THE VERDICT’S IN. WALL STREET DOESN’T JUST LIKE BITCOIN, THEY LOVE BITCOIN. IF YOU THINK OF THESE ASSETS, THERE’S BEEN OVER 5,500 ETF LAW

FIRMS IN HISTORY, NEVER HAVE WE HAD A FUND GET TO $3 BILLION. BLACKROCK, INFIDELITY BOTH JUST DID IT. TWO FOR THE FIRST TIME IN HISTORY. IF YOU LOOK AT BIT WISE AND 21 SHARES ARC, THEY’RE GOING TO HIT A BILLION DOLLARS THIS WEEK, AND

NOW YOU HAVE FOUR FUNDS THAT ARE GOING TO HIT A BILLION DOLLARS OF INFLOWS. THE MOST INTERESTING PART OF THIS IS THE INFLOWS, THESE FUNDS ARE DOING $500 MILLION A DAY OF NET INFLOWS. THERE’S ONLY 900 BITCOIN COMING INTO THE DAILY INCOMING SUPPLY,

SO WHEN YOU LOOK AT THAT, THAT’S LIKE 40 TO $45 MILLION. THERE’S 12.5 X MORE DEMAND FOR BITCOIN THAN WHAT’S BEING PRODUCED ON A DAILY BASIS. >> YOU CAN JUST MEASURE THE ACTUAL NET INFLOWS. YOU CAN SEE THERE IS WAY MORE BUYING PRESSURE.

>> 3 BILLION FOR BLACK RROCK. >> BIT WISE AND 21 SHARES WILL HIT A BILLION THIS UPCOMING WEEK. >> TOTAL VALUATION OF BITCOIN — >> A TRILLION. >> OF THE MARKET CAP IS A TRILLION DOLLARS, ISN’T THIS ADY MINIMUS ISSUE OR NO?

>> HERE’S WHERE THIS GETS INTERESTING. 80% OF ALL BITCOIN IN CIRCULATION HAS NOT MOVED IN THE LAST MONTH. $2 BILLION IS ACTUALLY TRAD TRADEABLE. BITCOIN HAS BECOME WALL STREET’S FAVOR FAVORITE ASSET. >> WHAT ARE YOU GOING TO SAY, JOE? >> I’M NOT GOING TO SAY, 5%

DOESN’T SOUND LIKE A LOT. >> IN 30 DAYS? >> IT USED TO TAKE A LOT FOR SOMEONE TO INVEST IN BITCOIN, IT’S REAL EASY RIGHT NOW. I DON’T KNOW, ARE WE GOING TO 90,000 IN A YEAR? PEOPLE DON’T DOUBLE THEIR MONEY BY BUYING AN ETF IN A YEAR.

NOW I THINK IT MIGHT BE A CURRENCY THAT YOU CAN USE BECAUSE IT’S GOING TO STAY AT 47,000. >> THE WORLD CHANGING FOR SURE. LAST YEAR THE NASDAQ WAS UP 50%. THERE’S DEFINITELY THESE BIG MOVES THAT HAPPEN IN THE ATTRITIONAL MARKETS.

BITCOIN IS B OBVOBVIOUSLY THAT STEROIDS. FIDELITY HAS AN ALL IN ONE FUND IN CANADA. THEY’RE GOING TO PUT 1 TO 3%. YOU’RE GOING TO START SEEING THEM PUTTING BITCOIN INTO ALL OF THEIR FUNDS BECAUSE FROM A RISK REWARDS STANDPOINT, DRASTICALLY IMPROVES THE PERFORMANCE OF

THESE PORTFOLIOS AND THEY’RE GOING TO START TO REALIZE IF I’M LAGGING INDICATORS, IF I’M LAGGING PERFORMANCE, IF I PUT A LITTLE BIT OF BITCOIN, IT’S GOING TO ENHANCE RETURNS. >> I THINK IT MIGHT BE GOOD IF IT STAYED AT 47,000 FOR A YEAR.

PEOPLE WOULDN’T WORRY ABOUT BUYING A PIZZA WITH A MERCEDES TWO YEARS FROM NOW. >> JOKE IN THE BITCOIN COMMUNITY IS THE REAL BITCOINERS WANT THE PRICE TO STAY LOW SO THEY CAN ACCUMULATE MORE OF IT. OBVIOUSLY WHEN YOU HAVE THIS MUCH DEMAND.

>> A YEAR FROM NOW IT’S WHERE? >> IT’S MUCH HIGHER. I THINK IF THIS CONTINUES, IF WE HAVE 12.5 TIMES MORE COMMAND THAN WE DO INCOMING DAILY SUPPLY, WE’RE GOING TO GO FROM 900 BITCOIN TO 450 BITCOIN A DAY, THIS THING IS GOING BACK TO

ITS ALL TIME HIGH. >> WHAT’S THAT THING CALLED WHEN WE ALL GO TO HE KNOW,AVEN, SOME LEFT BEHIND. >> THE RAPTURE. >> WHAT’S THE THING YOU WORRY ABOUT? >> YEAH, IT’S NOT SO MUCH RIGHT OR WRONG, THE RETURN OF THIS

ASSET IS GOING TO DAMPEN OVER TIME AS IT GETS LARGER AND AS THE HOLDER BASE CHANGES. ONE OF THE THINGS THAT HASN’T HAPPENED PREVIOUSLY IS THINGS LIKES REBALANCING. WHEN YOU GIVE FINANCIAL ADVISERS AN ASSET AND IT IMPOSE TO 5%, YOU’RE GOING TO SELL.

YOU’RE GOING TO REBALANCE THAT PORTFOLIO. WHEN THE HOLDER BASE IS CHANGING, YOU HAVE TO UNDERSTAND THAT THE RETURN PROFILE WILL COME DOWN. IF YOU THINK THAT YOU’RE GOING TO BUY BITCOIN AND IT’S GOING TO HELP YOU RETIRE, THOSE DAYS PROBABLY ARE BEHIND, BUT WHAT IT

WILL DO IS OUTPERFORM THE STOCK MARKET. >> THEN YOU’RE NOT IN THE CAMP OF THE CATHIE WOOD $500,000,000,000 BASE CASE BITCOIN VALUATION ISSUE. IF THAT’S TRUE, THEN YOU CAN RETIRE. >> LOOK, AGAIN, IT DEPENDS ON THE TIME LINE. IF YOU’RE SAYING IT’S GOING TO

GO FROM 50,000 TO 500,000, THAT’S 10X. >> I THINK SHE THINKS THAT’S WHAT’S GOING TO HAPPEN. >> THAT’S NOT THAT CRAZY. NASDAQ WAS UP 50% LAST YEAR. WE LIVE IN A WORLD WHERE IT HAS COMPLETELY LOST ALL TIES TO REALITY BECAUSE WE ARE PRINTING

AN ENORMOUS AMOUNT OF MONEY. THE INTEREST PAYMENT ON THE DEBT IS A TRILLION DOLLARS, RIGHT? IT WAS A VIDEO GAME NUMBER. SO IN THAT WORLD, HOW MUCH ARE THESE ASSETS WORTH WHEN THE DENOMINATOR IS BEING DEBASED AWAY. THEY’RE GOING TO BE WORTH A LOT MORE.

YOU CAN START PUTTING ZEROS ON THE END OF THESE ASSETS. >> ANTHONY POMP POMPLIANO. >> IS IT CALLED THE HAVING? THAT WASN’T THE HAVING — >> THAT’S WHERE THEY ALL — FYO HAD SOME TIME LEFT. SHOULD WE GO? WE’RE GOING TO GO.