00:00 Speaker A
Bitcoin hitting a record high rocketing over $111,000 per coin on Thursday. The cryptocurrency is soaring on growing optimism around US regulations and we want to talk about how crypto might fit into your portfolio and lessons that everyday investors might learn from the ultra wealthy here with more. We’ve got Michael Sonnenfeldt who’s the founder and chairman of Tiger 21, an exclusive peer network of wealth creators who are navigating, managing, growing their money. Michael, great to speak with you once again. Thanks for taking some time here with us on Wealth. Just talk to us about what you’re seeing in some of the thought process among the ultra wealthy thinking about adding and maintaining crypto in their portfolio right now.
00:50 Michael Sonnenfeldt
So, you know, our members uh are wealth creators who are now trying to preserve capital. They’ve had a liquidity event, they’ve sold their business and they want to hold on to what they have. And across the board, it’s about 28% private equity and about 28% real estate and then 24% public equity. But the cryptocurrency is a lot of excitement in the aggregate because our members manage about $200 billion of their own wealth across our 1,600 members. The cryptocurrency might only be in the 1 to 3% range, so across our group, five, six billion in crypto assets. But we have some diehards who have huge allocations within their own portfolios and just look at Bitcoin. We you know, Bitcoin not only is doing something amazing now with an all-time high. It’s been the top performing asset uh across the board from I think the last decade. And uh so you have believers who are being validated not only by crypto’s extraordinary performance in Bitcoin, but now Coinbase being added uh to the index and that’s that’s really going to propel some more conservative institutions to give it a better look.
02:52 Speaker A
Certainly. And I just want to come back to the numbers that you just mentioned a moment ago. You said about 28% private equity, 28% real estate, 24% uh public equity which gets us to 80% of their portfolio. So is that last 20% just holding cash plus crypto?
03:20 Michael Sonnenfeldt
equity. Yup. Last 20 last 20 is half in cash, 10%. That’s uh pretty typical over the last decade. Hedge funds have been decimated over the last decade down to 1%. It’s it’s unbelievable. And then there’s commodities like currencies and gold. Um Bitcoin right now is sort of neck and neck with gold within our members. It’s a storehouse of value of all the cryptocurrencies. Some of the cryptocurrencies are focused on transactions, other on storehouses of value. And the general consensus is that Bitcoin, while not as flexible in transactions, is a better storehouse of value and they’re looking at it as a superior gold substitute. Some people like gold, some people like all of the digital aspects uh of blockchain and so forth uh in Bitcoin.
