It’s Here: The Most Important Moment for Bitcoin in Crypto History

I think this is the most important year For Bitcoin that has ever existed over 11 spot Bitcoin ETFs are set to get Approved this week we are probably days Away from a series of ETFs being Approved and with hundreds of millions Of dollars if not billions forecasted to Flow into Bitcoin over these next few Years this is the moment for Bitcoin to To use that old term cross the chasm and Really Seen mainstream adoption where our Parents and our Grandparents understand what it is can Buy it and while this is the very first Time in history we've seen adoption from An Institutional level like this and Then do buy it and I think that if all Of this comes to pass Bitcoin will be a Part of the traditional Financial Lexicon by the end of 2024 send this to A friend who invests in Bitcoin so they Can be a part of History crypto world is Going to find out whether 14 different Money managers and ETF issuers will be Allowed to launch their own spot Bitcoin Exchange traded funds so if you're Wondering how this affects you or what Comes next I suspect the next thing We'll see is that both the exchanges That are going to have to trade these Products and the issuers will finish up Their paperwork there's a couple Different forms that have to get filed

That's when we'll get a bunch of Information like what are the expense Ratios going to be we still don't know That these things could come out free They could come out at 2% we have no Idea I think everybody's thinking around 50 basis points is probably the over Under on that but we have no idea so We'll get that when we see that from the Issuers then we'll get the approval for These things to trade and the SEC may or May not give a hard date there to say Everybody can start trading say on January 21st they may simply say all Right everybody go in which case we Might see some of these things start Trading next week we might see a bit of A horse race to see who has their Capital markets desk lined up first and Some folks may be ready at 9 :30 on one Trading day and other folks may not be Able to trade until noon just because There are a lot of operational Considerations in getting any ETF off The off the ground so we are still Waiting on some of these issuers to fill In all the details but no matter who Wins all of these ETFs will be Physically backed meaning everybody will Have to actually buy the Bitcoin and Understanding what happened to the gold Price back in 2004 when the very first Gold ETF was approved and we saw the Demand and where do you think Dave maybe

The demand comes from and do you think This is this is retail it's Ras it's Institutions I think initially this is Pure froth right that's the issue Because it is the story we've all been Talking about because Bitcoin has Already had a heck of a run in the last Few months I don't think that this is Going to be one of those things where we Immediately have 10 billion in new Assets show up remember one of the funds Here is grayscales gbtc converting it Already has $25 billion in it so we know Know what that demand looks like to me The real question is when we look back Say in a couple of weeks maybe a month Or two how much incremental demand has There been over that 25 billion because That'll get redistributed a little bit The great scale won't hang on to all of That it'll move to a black rock product Or a vanac product or somewhere in there So when we add all that back up is there A lot of demand I think there's some Most of the new demand will probably Come from what I would consider more Portfolio allocators that means for the First time in bitcoin's history not Traders not folks were just trying to Take a run on bitcoin those folks Already know how to do that they have Lots of ways to do that but if you're a Financial adviser and you're running a Model portfolio putting a 3% slug in

Your aggressive version of the model That's where I think the initial assets Are going to come from and by the way Other countries within these last few Years have already adopted this it's Been Gary Gensler head of the SEC that Has always been pushing back they Actually lost a major case at the end of Last year against against grayscale Which is the reason all this is now Happening so fast let me talk about the Sec's role here but even the former Chair of the SEC Jay Clayton share some Light on the sec's thinking and what I Would say is the three things the SEC Felt that they had to get right before They approve it and you know approval is Not certain but I've said that you Approval this week is not certain but I Believe approval eventually is Inevitable so here are the three things The SEC needs to see before they approve Yeah it's coming what they the Disclosure has to be right okay so that People understand what they're buying The second thing is the underlying Trading Market has to be efficacious it Has to be of of a quality that Manipulation the type of um you know Just bad behavior that you don't want to See in an underlying trading Market is Eliminated or at an acceptable minimum Um and then lastly and this is very Important here with with the digital

Asset the pipes have to work the product Itself the custody the create the Redemption Kate talked about authorized Participants and the Arbitrage and how This product actually functions that has To work so the SEC has to have gotten Comfortable that all those things are Are going to function as they should um You know I've said many times when I was Chair of the SEC I was concerned about That underlying Bitcoin trading market So you know I think we've gotten past That on your question about Investors I Rarely give investment advice I don't Know whether Bitcoin is going to be Worth a lot or a little I will say this This is a speculative volatile asset no Good investment adviser or broker dealer Would tell you to put a substantial Portion of your investment assets into a Single volatile or speculative asset you Say that Jay I'm sorry to interrupt you Say that but somebody will right I mean Somebody out there in the financial Advisory world will say you know what You want to make some money in your Retirement funds get into this it's it's Going to expand and somebody's going to Lose their shirt right so obviously the Price of any asset especially Bitcoin is Volatile I mean gold after approval the Price rallied in to the approval and Then we had volatility after bitcoin's Volatility is 10x if not 100x gold but

Again once these are approved that's not The Finish Line That's The Starting Line And we will have to see if there's Demand how much demand and which issuer Wins how are they making the decision of Which one is it going to be purely I Mean as you know a lot of the ETF flows Right now are fee based is that what It's going to be is it that the cheapest One is going to win the cheapest one's Certainly going to have a bit of a leg We already know that Invesco and Galaxy Are going to wave the fee for the first Six months that's always a little bit of A gimmick I don't think most advisers Get sucked into those kinds of fee Waivers um if one of the big players the Big known names say like a black rock or A Fidelity or somebody comes out with The cheapest one I think that's tough to Compete against but interestingly I Think it's where the volume is in the First couple weeks that matters more Than the cost so in that case it does Matter who starts trading first it can Because if we get a big slug of volume And then the derivatives Market shows up And all of a sudden we have a live Options Market on that particular ticker That's very hard to ever upset so we've Seen this before with things like gold GLD finally started trading options you Could come out with the cheapest best Gold product in the world you'll never

Pry GLD out of that derivatives Ecosystem this is an ongoing story now Is the time to follow but just Understand there is one fundamental flaw In this Bitcoin ETF adoption you won't Be able to buy the dip with Bitcoin ETFs Or sell if it goes parabolic because the Stock market literally halts trading When prices drop or increase rapidly so Owning actual Bitcoin to me is always Better because of the S&P 500 drops 7% That equals A50 15minute trading halt 133% another 15-minute Halt and 20% the Market closes for the day so if the Market drops heavily one day you won't Be able to buy or sell Bitcoin ETFs and It's not just the S&P trading halts also Apply to individual stocks and ETFs but The calculations are more complex for Example trading for GameStop stock was Halted multiple times back in 2021 in 2022 when the prices pumped and Bitcoin Is way more volatile than GameStop so if There's a dip or a country starts Printing money to buy Bitcoin and we get A god candle don't be surprised if your Buy and sell button for the ETF doesn't Work this is such an important week I Will keep you updated we drop one video Per day keeping you informed about Crypto click subscribe

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