Search
Video
Markets
August 2, 2022 | Channel 11 News

S3 E7: Looking Beyond the Crypto Credit Crisis of 2022

Channel 11’s Ken Shinoda welcomes Hunter Horsley, co-founder and CEO of crypto index and ETF provider Bitwise Asset Management, for a deep dive into the crypto space and the tumultuous year it has been experiencing. It’s “always fun to talk about the craziness of crypto land,” notes Mr. Horsley, who begins the conversation with an explanation of the burgeoning crypto space (1:08) that draws a comparison to the history of the development and adoption of the iPhone (5:34). Messrs. Shinoda and Horsley then get into the volatility experienced in crypto assets in 2022, a period Mr. Horsley splits into two quarters (15:55). The first quarter story for crypto was the story of macro with interest rate hikes and liquidity being pulled out of every asset class. The second quarter brought the Crypto Credit Crisis of 2022, a self-inflicted wound on the space, according to Mr. Horsley, and a period in which crypto experienced its versions of Long-Term Capital Management, Lehman Brothers and Archegos. With the use of a timeline chart (19:07), he reviews the major events of the second quarter volatility (that stretched into July) beginning with trouble at Terra and on into Celsius’ bankruptcy filing. Ultimately, Mr. Horsley says, the Crypto Credit Crisis resulted in a lot of risk washing out of the sector.

Next, Messrs. Shinoda and Horsley get into the long-term outlook for crypto (33:30), which Mr. Horsley notes has been around for a little while now and has experienced four-year cycles: three years of bullish returns and one year of drawdown (34:05). Mr. Horsley lays out the progress the space has undergone in that period, which he sees as positive and wouldn’t be taking place “if there’s not actually a there there.” Mr. Horsley also breaks down the outlook into three factors to track (41:47) – macro, industry and asset – with him noting regulation as the “single most bullish catalyst that could possibly take place.” The two conclude their conversation with a talk on crypto asset allocation (58:31). This episode was recorded Aug. 2, 2022.

• This material contains the opinions of the manager as of the date it was recorded and such opinions are subject to change without notice.

• The material represents DoubleLine’s intellectual property. No portion of this presentation may be published, reproduced, transmitted, or rebroadcast in any media in any form without the express written permission of DoubleLine. To receive permission from DoubleLine, please contact media@doubleline.com.

• The views and forecasts expressed in any materials on this website are as of the date indicated, are subject to change without notice, may not come to pass and do not represent a recommendation or offer of any particular security, strategy, or investment. DoubleLine has no obligation to provide revised assessments in the event of changed circumstances. There can be no assurance that the strategies described will achieve their objectives and goals.

• DoubleLine® is a registered trademark of DoubleLine Capital LP.

• ©2022 DoubleLine

About the Host

About the Host

  • Ken Shinoda, CFA

    Structured Products - Non-Agency RMBS

    Ken Shinoda, CFA

    Structured Products - Non-Agency RMBS

    Mr. Shinoda joined DoubleLine at inception in 2009. He is Chairman of the Structured Products Committee and oversees the non-Agency RMBS team specializing in investing in non-Agency mortgage-backed securities, residential whole loans and other mortgage-related opportunities. Mr. Shinoda is co-Portfolio Manager on the Total Return, Opportunistic Income, Income, Opportunistic MBS and Strategic MBS strategies. He is also lead Portfolio Manager overseeing the Mortgage Opportunities private funds. Mr. Shinoda is also a permanent member of the Fixed Income Asset Allocation Committee, as well as, participating in the Global Asset Allocation Committee. In addition, he hosts DoubleLine’s “Channel 11 News” (Twitter @DLineChannel11, dline11@doubleline.com), a webcast series that provides market insights and commentary with peers and industry experts. Prior to DoubleLine, Mr. Shinoda was Vice President at TCW where he worked in portfolio management and trading. He holds a B.S. in Business Administration from the University of Southern California and is a CFA® charterholder.