403: Why Smart Money Is Rotating From AI Into Crypto Right Now with Guest Speaker André Dragosch From Bitwise

 EPISODE DESCRIPTION 

I sat down with André Dragosch, European Head of Research at Bitwise Investments, live at Bitcoin Prague in the Czech Republic. Bitwise manages over $11 billion in AUM and Andre breaks down exactly why institutional investors are quietly rotating capital out of AI stocks and into crypto assets right now. We dig into why Bitcoin behaves more like a CDS on sovereign bonds than an equity hedge, how ETPs solve the custody headache for family offices and pension funds, and why the K-shaped economy in the US is actually one of the most bullish setups Bitcoin has ever seen. Andre also shares where Bitwise is expanding next, including staking on Ethereum and Solana and curated vault strategies. This is one of the most grounded, data-driven macro conversations I have had on the show and I think you will get a lot out of it.

DISCLAIMER

Nothing mentioned in this podcast is investment advice and please do your own research. It would mean a lot if you can leave a review of this podcast on Apple Podcasts or Spotify and share this podcast with a friend. Be a guest on the podcast or contact us - https://www.web3pod.xyz/

 CONNECT 

Bitwise Investments Website: https://bitwiseinvestments.eu/

Twitter/X - Bitwise: https://x.com/Bitwise_Europe

LinkedIn - André Dragosch: https://www.linkedin.com/in/andredragosch/

Web3 with Sam Kamani: https://www.web3pod.xyz

 KEY POINTS WITH TIMESTAMPS 

• [00:00] Bitcoin acts as a CDS on sovereign bonds and is trading in the lowest 10% of valuations across multiple metrics

• [02:05] Andre's journey from Dogecoin in 2013 to European Head of Research at Bitwise, including his time at Union Investment

• [04:28] How ETC Group was acquired by Bitwise in summer 2024 and became Bitwise Europe

• [06:52] Why ETPs solve custody, regulatory, and cost problems for institutional investors and pension fund holders

• [09:14] Capital rotation already happening from expensive AI stocks into cheap crypto assets

• [11:40] Why Bitcoin's correlation with Nasdaq has risen since the US ETF launch but it showed resilience during the recent AI correction

• [14:02] Bitcoin as a macro canary in the coal mine, signalling liquidity deterioration before it hits equities

• [16:18] Risks in private credit financing AI CapEx and the comparison to Cisco during the dot-com era

• [20:57] Why the Fed's reaction function would be far more aggressive today given how politically dependent the economy is on rising stock prices

• [23:15] The K-shaped economy in the US and why 90% of the population is being left behind

• [24:41] Bitwise's next growth areas: staking on Ethereum and Solana, and curated vault strategies

• [25:41] How flows into ETPs are both cyclical and sentiment-driven, but strategic allocators invest regardless of price