Key Takeaways
- • Henri Arslanian, co-founder of Nine Blocks Capital Management, said ETFs now give nontechnical investors access to bitcoin, while crypto natives may still prefer holding coins directly.
- • Nine Blocks became the first crypto hedge fund licensed by Dubai's Virtual Assets Regulatory Authority, which Arslanian credited with creating the world's first regulator dedicated to crypto.
- • Stablecoin supply grew from less than $5 billion at the start of 2020 to more than $200 billion in about five years, according to Arslanian.
- • Arslanian said banks, which cut off digital asset entrepreneurs with 30 days' notice, were a bigger obstacle than cash handoffs or wires in the early years.
- • Arslanian said interest in tokenized Treasuries has moved faster than he expected, and he sees tokenization eventually opening assets such as commercial real estate to investors who cannot meet high minimums.
Summary
Henri Arslanian, co-founder of Nine Blocks Capital Management, described how access to bitcoin has changed, in an interview with CoinShares, the digital asset manager behind the CoinShares Bitcoin ETF (BRRR). Arslanian, who discovered bitcoin in 2013 and later helped build the crypto team at PricewaterhouseCoopers, recalled that buying bitcoin once required handing over cash or wiring money abroad. He said the larger problem was banking access, noting that banks cut off entrepreneurs working in digital assets with 30 days' notice, an experience he said happened to him multiple times.
Arslanian said he believed institutional investors would enter crypto first through regulated fund managers, a view that shaped Nine Blocks. The firm became the first crypto hedge fund licensed by Dubai's Virtual Assets Regulatory Authority. He said Dubai created the world's first regulator dedicated to crypto, giving firms clear rules and a level playing field, and that many large firms followed.
On product access, Arslanian said ETFs suit the average investor, particularly those who are not technical, and credited CoinShares with being ahead of the curve. Crypto natives, he said, may prefer holding their own coins, much like gold buyers who choose bars at home.
Arslanian also highlighted stablecoins, which are tokens pegged to the U.S. dollar. Their supply grew from less than $5 billion at the start of 2020 to more than $200 billion in about five years. He said stablecoins give people in emerging markets such as Turkey and Argentina access to U.S. dollars, and that companies use them for cross-border trade to avoid slow bank transfers.
Arslanian said he was bullish on tokenization as early as 2018 but misjudged the timing. Interest in tokenized Treasuries has since moved faster than he expected, and he still sees tokenization opening assets such as commercial real estate to investors who cannot meet high minimums.
Arslanian said he believed institutional investors would enter crypto first through regulated fund managers, a view that shaped Nine Blocks. The firm became the first crypto hedge fund licensed by Dubai's Virtual Assets Regulatory Authority. He said Dubai created the world's first regulator dedicated to crypto, giving firms clear rules and a level playing field, and that many large firms followed.
On product access, Arslanian said ETFs suit the average investor, particularly those who are not technical, and credited CoinShares with being ahead of the curve. Crypto natives, he said, may prefer holding their own coins, much like gold buyers who choose bars at home.
Arslanian also highlighted stablecoins, which are tokens pegged to the U.S. dollar. Their supply grew from less than $5 billion at the start of 2020 to more than $200 billion in about five years. He said stablecoins give people in emerging markets such as Turkey and Argentina access to U.S. dollars, and that companies use them for cross-border trade to avoid slow bank transfers.
Arslanian said he was bullish on tokenization as early as 2018 but misjudged the timing. Interest in tokenized Treasuries has since moved faster than he expected, and he still sees tokenization opening assets such as commercial real estate to investors who cannot meet high minimums.
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