In this episode of "Behind the Ticker," host Brad Roth welcomes David LaValle, a notable figure in the ETF industry and a current leader at Grayscale, the premier digital currency asset manager. The discussion provides an in-depth look at the intersection of Exchange-Traded Funds (ETFs) and digital assets, highlighting LaValle's significant contributions and Grayscale's innovative efforts in this space.Background and Industry Experience: David LaValle shares his extensive experience in the financial markets, tracing his path from the early days of trading to his pivotal role in Nasdaq's ETF listing and trading business, and now, his leadership position at Grayscale. His journey reflects a deep commitment to advancing financial products and the ETF ecosystem.Grayscale's Approach to Digital Assets: The conversation delves into Grayscale's mission to make digital assets accessible through regulated investment products. LaValle discusses the importance of regulatory compliance and the company's strategy in offering products like the GBTC, aiming to provide investors with secure access to digital currencies within a familiar investment framework.Educational Initiatives: A significant part of the episode focuses on the challenges surrounding the adoption of digital assets and the crucial role of education in this process. LaValle emphasizes Grayscale's efforts to dispel myths and provide clear, comprehensive information about digital currencies, highlighting resources like the Grayscale Bitcoin Book designed to inform and guide investors and financial advisors.Regulatory Journey and Milestones: LaValle recounts the challenging but ultimately successful journey to obtain regulatory approval for Grayscale's bitcoin ETF. This narrative underscores the complexities of integrating digital assets into traditional financial systems and the perseverance required to navigate regulatory landscapes.Looking Forward: The episode concludes with LaValle's insights into the future possibilities for ETFs and digital assets. He shares his vision for expanding the ETF ecosystem to include a wider range of digital asset products, potentially transforming how investors engage with these emerging technologies.
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and David LaValle covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
But we know is going to be something that's going to be in demand in five or ten years from now. And we've partnered with footsy on developing the crypto sectors. So we have all sorts of very interesting innovative ideas. It's about utilizing the regulatory framework. It's about delivering exposure of crypto to our investors and really being that crypto specialist for the market.
Look, we had tremendous, tremendous conviction that we were going to deliver on the promise that we offered our investors that we were going to deliver Bitcoin in an ETF rapper. And in 2013, when this product was built, and it predates me, but it was built to mimic GLD's construct, a 33 act, Delor Grantor Trust, that was going to be a building block for clients in their portfolios. And it was going to be an allocation that they were going to want, just like it's an allocation that they have for gold or for S&P 500 exposure or or other commodities.
Market Context and Positioning
Well, David, I can't thank you enough for joining me. This was education on site full fund conversation before I let you go. Where can people learn more about you? Where can people learn more about grain scale? You can learn more about me hanging around ETF conferences. It's like we are here. But GraceKale.com is much more interesting for your listeners. We have a tremendous amount of research and a tremendous amount of resource to educate our advisors and our clients and potential investors.
So those are two disruptive technologies that the first application was really, really useful for me. And then it permeated the rest of my life, the smartphone and the internet. The issue here is we have another disruptive technology upon us. The first use case is kind of useless to many people in the US market. And I remind them it's a disruptive technology. And this is going to have the properties of growth tech. And so you should think about it is a disruptive technology and to have an allocation in your portfolio that has a field of growth tech, volatile, high returns.
I'm Brad Roth, Chief Investment Officer of Thor Financial Technologies, and portfolio manager of THLV, the Thor Low Volatility ETF. Behind the Ticker, uncovers the inner workings of the ETF industry. We will interview portfolio managers and ETF service providers to dive deep into their work lives and their businesses. We will learn the inner workings of their strategies and what drives them as they continue to grow their company. Many of these individuals are entrepreneurs, and will have unique and compelling insights to share as much goes on behind the Ticker.
Notable Insights
"So seeking liquidity in those products, we have the opportunity to make them SEC reporting companies, which would be phase three."
"I think the biggest hurdle for mass adoption in the wealth space is just basically education."
Key Takeaways
- The conversation explores important themes in crypto & digital assets relevant to today's advisor landscape.
- The conversation explores important themes in growth investing relevant to today's advisor landscape.
- The conversation explores important themes in fixed income relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with David LaValle highlights important considerations around crypto & digital assets. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of crypto & digital assets and growth investing discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with David LaValle, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.