Breaking Down ETF’s Impact on Bitcoin Price with Cory Klippsten

I obviously don't expect 70k to be the Uh the high of this next po run I think It'll be significantly higher than that But what I've been talking about is a an ETF multiplier effect are you still Feeling the heat of bitcoin's latest Retracement to the low 40,000 take a Breath it looks like the tide of the Crypto Market is changing again billions Of dollars are flowing into the new spot Bitcoin ETFs while capital outflows from Gptc are finally slowing down does it Mean the correction is over or should we Expect new lows and what may be the Actual impact of the new ETFs on the Bitcoin price in the long run I Discussed these and more questions with The CEO of swan Bitcoin Cory Clipson Before we dive in I'm thrilled to Announce the upcoming return of block Show the leading event in the crypto and Blockchain Industry this time it's Teaming up with block down a Pioneer in The web three conference scene get ready To join us in Hong Kong for this crypto Celebration from May 8 to 9 don't miss Out click the link in the description to Learn more about this event and remember Early birth tickets are limited and now Let's get to the [Music] Interview in an interview that I saw From last year you were recommending People not to trade the spot Bitcoin TF

Approval because uh of a possibility of Um correction and that's what actually Happened so you were predicting that Bitcoin would retrace by about 30 40% Uh how much further do you think it will Correct from the point we are now the Only signal that I'm seeing right now That matters is the flows into the non Gbtc ETFs so the new the new ETF Vehicles that that didn't exist gbtc has Had absolutely massive selling because There are a bunch of these bankruptcy Estates that are selling gbtc now that The discount to net asset value has Closed to near zero uh there's just a Ton of selling going on out of gbtc uh We we all learned that the FTX Bankruptcy sold a billion dollars worth Of of gbtc over a few days for instance So I think it's just kind of inevitable That that was going to happen I actually Think that the amount that it's Fallen Is amazingly small given the amount of Selling that's been going on and I think That is a credit to not just the flows Going into the new ETFs but what I've Been talking about is a an ETF Multiplier effect And basically this is because of the Existence of the ETFs and The Credibility of these large Financial Firms getting into the space and Validating it in the eyes of of Investors that haven't played the game

Previously a lot more Bitcoin will be Purchased through all of the other Sellers around the world whether it's Swan whether it's coinbase whether it's You know relay over in Europe or or OTC Desks or even private funds from Morgan Stanley and Goldman Sachs so there's a Lot more Bitcoin flows or or money Flowing into Bitcoin incremental to what Otherwise would have because of the Existence of the ETF so it's their Marketing and their stamp of approval That frankly is much more important than And and frankly a lot larger magnitude Of flow into Bitcoin than than just What's flowing into the ETFs a lot of People are saying that this event the Approval of the spot Bitcoin ETF is Creating even more more distance from Bitcoin and the rest of cryptocurrencies Can you give us your view on the impact That this is going to have on the Relationship between Bitcoin and the Rest of crypto wow it's so funny I I Have a very fresh example of this that Happened about an hour ago I'm actually Squatting in an old office of mine I Just got caught on this side of town Which is why I have the fancy conference Room background here uh anyway I'm Friends with one of the the DK guys here From having uh spent time here and we Were in the the coffee room and he Struck up a conversation with another

Gentleman that was there who ended up at I didn't know but he's the CEO of a a Fairly large insurance company and they Started talking about Bitcoin ETFs and I Got to hear this guy's reaction because The D guy knows me and knows about Bitcoin from you know from me and just Being interested after knowing us for a Few years so he was making the pitch and The guy was like fully on board and his Take basically was uh he's more Comfortable with it now that so much of The fraud has been washed out of the Crypto space so he knew about FDX and he Knew about binance and he basically just Didn't trust because Bitcoin was so Closely linked with all these C5 frauds And all the crypto frauds and pump and Dump schemes uh it was really hard to Separate Bitcoin from non-bitcoin crypto And from just kind of like crypto Scammers generally and now it's really Obvious that there's something there and He's starting to look at it he doesn't Know it any personally but then when uh Jeremiah the the the desk guy said by The way Corey runs a big Bitcoin company We were right into a conversation about How it fits into insurance company Portfolios I started talking about how I Know the CIO at Mass Mutual and they did Aund million do Buy and they love it Because it's non-correlated and because It matches with you know extreme tail

Risks that may happen and it's the kind Of asset that can go up a lot over over Time and and it actually you know so so Dramatically improves the sharp ratio of An insurance company portfolio um so Yeah right into a conversation like that Totally impossible I guarantee you Impossible three months ago on the other Hand we have a lot of rumors a lot of um Talking about the possibility of an Imminent spot ethereum ITF being Approved as well in the US um we saw That black rock filed an application for It and um uh Bloomberg analyst I believe Eric balunas not long ago said that There is a 70% chance that a spot Ethereum ETF will be approved this year If that happens it means that ethereum Will also have the same status of Bitcoin in terms of uh institutional Acknowledgement don't you think so That's always been the play right and The ethereum foundation and Luben and Consensus have spent billions of dollars To try to make that a reality and try to Confuse Regulators to thinking that this Was somehow somewhat like Bitcoin and They may pull it off I mean me the Church of Scientology did used to be a Church and they R ran a massive letter Writing campaign and choked the courts And they get to have taxfree real estate All over Los Angeles so it's not like Things always work out as they're

Supposed to a lot of times concentrated Interests can influence policy this is Why we have a crappy food pyramid Stuffed with Stacks from General Mills And kogs right so I suspect that you Know there's a pretty good likelihood That ethereum gets away with it uh as a Team and as a tech company with their Sort of pseudo Company stock that they Uh they have massive uh influence over And massive piles of and continue to Rake the rewards of through staking um So they'll probably get away with it I Just don't think it'll matter though Because people who actually look into The stuff the deeper you go into it the Less you understand Bitcoin uh the less you understand Ethereum as being money of any kind I Think that Meme is obviously pretty Freaking dead um and we have proof Points of this right like there are a Lot of crypto industry requests for Instance for blockfi to add ethereum and Altcoins to the the card rewards at Blockfi and they argued and argued and Argued and said all these people wanted Ethereum rewards they don't they Actually don't they want to use it to Launch grifty scams and pump and dumps And you know to trade basically and the Only people that really hold ethereum For the long term are pretty much the Insiders because they're just getting

The staking income and so after a year Of marketing ethereum and six or seven Other cryptos versus Bitcoin it only amounted to 3% of Rewards 97% of the rewards were still Taken in Bitcoin because Bitcoin is Something that people actually want to Hold and that won't ever change Regardless of whether there's an Ethereum ETF it'll just trade like a Tech stock basically at best you said That in this specific Market cycle Bitcoin is likely to break the pattern Of diminishing returns that we have been Seeing throughout uh the latest few Cycles so why exactly do you think that This pattern will be broken this time Yeah so I think it's inevitable and I Apologize if I I did this Math Live last Time I can't remember if I did but the The the trough to Peak up to the top of 2013 was $2 to 1100 so it was 550x the trough to Peak up to 2017 was 180 bucks up to 19,700 which interestingly was exactly 20% of that it was 110x so from 550x to 110x Amazingly it it continued to be Geometric into 2021 so trough to Peak in 2021 was from 3150 to 68800 or 69,000 or Whatever it was literally 22x another 20 Or another 80% reduction in in the rise So from 550 to 110 to 22 when I say that We're going to break that cycle of sort

Of these these geometric returns it's Because from the bottom of around 16k if you went to 4.4 that would only Be 70k and I obviously don't expect 70k To be the uh the high of this next bll R I think it'll be significantly higher Than that so I think that cycle of sort Of geometrically diminishing returns is Going to break um you know this year or Next year for sure thanks a lot Corey For coming on our show it's always a Pleasure and you as [Music] Well [Music] N