Spot Bitcoin ETF Approved: Impact on Investments with Mark Yusko

Volatility will Trend down as do all Assets as they grow do I think we'll see 500 600,000 sure Bitcoin won't be the Same ever again the floodgates for Institutional Capital are now open after Last week a spot Bitcoin ETF was Approved in the United States but what Is the long-term impact of the ETF Approval how will it shape the future of Bitcoin as an asset class and does it Pay the way for the approval of a spot Ethereum ETF I address these and more Questions in my conversation with hedge Fund manager Mark yuso before we get Started as always consider leaving a Like and subscribing to our Channel I'm Joavan your host and this is a coin Telegraph Interview you welcome this uh event Saying that the boomers are finally Coming to bitcoin meaning that now of Course a lot of um traditional investors Are going to have access to bitcoin and In case some Boomer is watching our show Right now can you maybe say why should He include Bitcoin in their retirement Account you know I've been talking about My my hashtag get off zero for a long Time right I I coined that phrase I Think back in in 2015 or 16 and been Talking about it ever since zero Exposure to bitcoin is the wrong number Now I'm not saying you should put 100% Assets there but but zero is the wrong

Number well why do I say that look Bitcoin is the greatest diversifying Asset we've ever seen and I've lived Through all of them right this just Means I'm old so I've seen you know back When times when people only bought Bonds In their portfolio they didn't own Stocks because they were too risky and Then they found out that if you add Stocks to a bond portfolio the risk Actually goes down because they're Uncorrelated and then you added things Like real estate hedge funds and venture Capital and private Equity every time You add a risky asset to a portfolio That's uncorrelated with the other Assets your portfolio gets more Efficient you get more return per unit Of risk Dr markwitz won the Nobel Prize For that pretty big deal well Bitcoin Over its 15year life is 0.0 correlated To bonds and 0.15 correlated to stocks It's the least correlated asset of any Assets stocks and bonds are three Correlated for reference so when you add It to a portfolio your return goes up Your risk goes down it happens to be the Best performing asset in 12 of the last 15 years of the 15 years has been around In fact Black Rock actually put out a Chart today showing there has been the Best performing asset in 12 of its 15 Years of existence so it's got a good Return therefore you should own a little

Bit of it now I would like to address The problematic aspect of the approval Of this spot Bitcoin ETF because um I Was reading uh an opad not long ago who Was say that was saying that crypto Needed Wall Street in order to reach Mass adoption it couldn't reach that Without the help of Wall Street the help Of the institutions the of a of a Traditional Financial instrument like um Like an ETF what would you say about it There's multiple layers here couple Things one owning little B Bitcoin the Token that's important right why is it Important well it's important to people Who believe in self- sovereignty and Self- Custody okay but the average person in In the Boomer class who isn't Technologically savvy who hasn't done The work who doesn't understand why this Asset so important doesn't understand Why triple entry accounting is an Important innovation just isn't going to Go there they're not going to memorize a 24-word seed phrase they're not going to Buy a little Ledger and and hold their Own keys so CI this intermediate step is Necessary it's why companies like Coinbase and Kraken are so valuable so If we think about that is this is an Interim step for longer term full Adoption it's kind of a copout to say Well you needed Wall Street in order to

Get Mass Adoption it's one piece of adoption There's still three billion people in The world that don't have electricity so Let's work on getting them adoption Because of the approval of the spot Bitcoin ETF we going to see some Long-term effects on on bitcoin some People say that Bitcoin won't be the Same ever again what they mean is that The spot Bitcoin ETF is going to uh make The price action of Bitcoin a little Less exciting in the sense that uh it's Going to kill the volatility of crypto You often say that you need to embrace Volatility because that's one of the Best part of Bitcoin some people say That yeah Giani look look what I'm Wearing today Embrace volatility I'm Actually wearing the shirt that's why I Wanted to ask you so are you not Concerned that this spot Bitcoin ETF Will kill bitcoin's volatility well It it certainly will reduce volatility But that's the nature of growing up Right it's the law of large numbers when When Bitcoin was very small and Basically a science project I mean 15 Years ago when Hal finny 15 years ago Yesterday when how finny you know did The ba you know the basic tweet uh Running Bitcoin the price was 0.0013 or something like that I mean it

Price was Zero and any movement was Incredible volatility just the law of Small numbers and then volatility was Really high and and that was great when It went from a dollar to $10 that was a miracle right that was The miracle the miracle that we got to a Real number that people could actually Be attracted to and by was was the Miracle whether we go from ,000 to 10,000 or 10,000 to 100,000 or 100,000 To a million that's not the miracle Right because those are smaller Percentage increases than that original Increase from 0.001 C to to $10 and so Yes volatility will Trend down as do all Assets as they grow that's what we want Right this this idea that we that we Some small horde of people want to have All the volatility to Ourselves that's not what this was Invented for right this was invented to Solve a problem which was dual entry Accounting being corrupt eruptible and Replace trust with truth to bust the Monopoly of the banking cabal that has Been existed I shouldn't say cabal U Cartel uh that's been around for 838 Years and so I I get it that lower Volatility boring I can't day trade it As much so be it it wasn't invented for Day trading it was invented to solve Money that's what was it was invented to Allow you and I to exchange value

Without asking permission we saw that in The days coming up to the approval of The spot Bitcoin ETF one of the best Performing cryptos was it and then even Though it's performing pretty well it Seems that a lot of people are already Expecting a spot ethereum ETF to be Approved soon Eric walunas the ETF Analyst at Bloomberg said that there is A 70% probability that a spot etherium ETF would be approved by may this year So what do you think would you agree With this uh sort of Expectations look I I I think certainly Anything's Possible I think the big challenge is Timing I mean it took 10 years 10 years To go from the first application by the Wink ofos twins for an ETF in Bitcoin to Approval yesterday so uh now ethereum Will stand on the shoulders of giants in The sense that it probably won't take 10 Years but I think the big challenge is Going to be look the SEC didn't want to Approve This you know it was clear in in the Chairman's statement that you know we're We're approving the ETFs but we're not Approving or endorsing Bitcoin not the Bitcoin really wants or needs his Approval but Uh they have clearly said in the past The Bitcoin is not a Security at one point they said ethereum

Was not a security but then they kind of Backed away from that they pretty much Have said anything else is a security so Probably not going to have ETFs in those Anytime Soon I would say it's less than 70% Chance I'd probably say less than 5050 Um I think it'll just come down to are The people that run the firms that Manage these assets willing to do the Hard work to make it happen so we'll see How that goes I was looking at our last Conversation six months ago when you Were actually predicting the approval of The spot Bitcoin ETF coming sometimes in Q3 Q4 2020 three so you were pretty very close You said that the Bitcoin fair value was Around around 55,000 and you were saying That Bitcoin would reach its fair value More or less when we're going to see the Halving and then we're going to have This big upside move uh you were saying That it would reach about $150,000 that would that was your Prediction for like the top of this Cycle would you correct this uh Prediction of yours that you made six Months ago right now what would you Correct or Adjust no no double I'll double up on it In the sense that uh I still think fair Value of the network today is somewhere In the the low 50s and we're going to

Creep toward that number um by the Having now I think that gets accelerated By the approval of the ETF now we're Gonna have some nonsense of the future Selling and some front running and day Trading and so there'll be some Volatility but uh I think between now And and the having we definitely get uh Into the 50s and you know whether we get to the All-time high I don't know but on the Having what happens is the the fair Value basically has to adjust upwards or Otherwise the miners don't make enough To stay in business and what we've seen In every past having is the fair value Basically double so that would take us From 50 to 100 to use round numbers and Then you get into crypto fall which Starts in June and that year following The having you get the fomo and the Momentum and the leverage and the Craziness I think that's going to be Less this time right normally it's about 2.3 2.5 times fair value so a fair value Is 100 that would takes to 230 250 I don't think we get there right I Think it's probably a one and a Halfish move this time because there Won't be as much uh liquidity and won't Be as much Leverage now is that too conservative Probably you had Kathy would on this Morning saying oh no it be 600,000 look

Of course she's gonna say that she's Trying to sell her product um but I Actually think she probably believes at Least a little bit that that's possible Do I think we'll see 500 600,000 sure by The end of this year by the end of next Year probably not but um I'm I'm pretty Confident that we'll see you know Six-digit Bitcoin in 2024 and uh the rest of the year will be A lot of fun okay so you pretty much Stick to your previous View on this and Uh yeah let's see how it's going to play Out let's talk again in six months as Usual it's always a pleasure to have you In our show Mark absolutely thanks for Having me gvan and uh best to you and All the viewers and we'll talk soon [Music] [Music] N