Spot Bitcoin ETF mania: Trillion-dollar opportunity, hidden risks and crypto stocks

Are the spot Bitcoin ETFs about to Expose Bitcoin to a $30 trillion Untapped Market good morning you're listening to The ryzen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if You want to know why no one in crypto Will shut up about spot Bitcoin ETFs Make sure you click that follow button Okay grab yourself a coffee and let's Get into It we are just a few weeks away from the SEC making their decision on the spot Bitcoin ETFs so today's episode is going To be ETF heavy but it's more about Analysis on what will happen if they Gets approved first up we'll be Discussing grayscale CEO claiming that Spot Bitcoin ETFs open crypto to a $ 30 Trillion Market does defy have a billion Dollar secret in the form of insiders Coinbase's stock continues a bull run of Its own the two risks of the spot Bitcoin etf's approval that no one is Talking about and Bitcoin has the fewest Public obituaries in over a Decade let's start with the big headline Yesterday we discussed Michael sailor's Comments on the spot Bitcoin ETFs where He called them the biggest Wall Street Development in the last 30 years sailor Also believes that the ETFs in

Combination with the Bitcoin harving Event in April will cause a demand shock Followed by a supply shock that will Bring about a bull run he's far from Alone in this positive sentiment and we Have seen predictions of everything from Bitcoin to $100,000 to bitcoin to a Million dollar according to Samson Mo The jam 3 CEO whatever happens with the Price there's one truth that is Undeniable we will see an influx of new Money into Bitcoin and this is where it Gets exciting grayscale is one of the 13 Firms awaiting the sec's approval of the Spot Bitcoin ETF hoping to convert their Famed grayscale Bitcoin trust Michael Sunshine the CEO at grayscale was Interviewed on CNBC yesterday and aired His thoughts on the effects of a Positive outcome he highlighted that one Of the real benefits is how these ETFs Will unlock investing in Bitcoin to Those who previously haven't had the Opportunity to give a sense of this Untapped Market sun and shine explained We're really talking about the advised Market here in the US which is today About $30 trillion worth of advised Wealth this is yet more evidence of the Demand shock followed by the supply Shock as we see the ETF approved and Then the harving event the crypto Investor Anthony popano tweeted another Perspective more than 90% of all Bitcoin

Is already in circulation 7 % plus is H By people who refuse to sell tens of Billions of dollars of demand are on the Way with the spot Bitcoin ETF you Learned what happened next when your Economics 101 Professor taught you Supply and demand wild what happens next Does seem to be cut and dry but is there Something we're all missing share your Thoughts with us on @ cointelegraph and @ Ark Bags you will know by now I Love Featuring coin Telegraph magazine pieces As they're always fascinating long reads And this one by Matthew hel is no Different it feels like we've discussed Hacks a lot in the past few months Primarily because the end of year Reports are released as much as this Space improves grows and investment in Security increases hacks are still Commonplace so Matthew's piece looks at One of the major causes of hacks in defi Insiders I know I say this every time But I just can't do the magazine Articles Justice in a short segment so Click the link in the show notes to read The full thing what I will give you is One example that shows why this is such An important area to be aware of in September 202 2 winter mute a defi Platform from my homeland was hacked for $160 million a vulnerability in a smart Contract that generated vanity wallet

Addresses of all things was the target Of the exploit the onchain sleuth named Libra has whose real name is James Edwards performed a deep dive on this Hack and suggested that wintermute ought To point the finger internally Libra has Said that the nature of the transactions And the complexity of the hack indicated An understanding of the smart contract's Workings that only an Insider could have Had winter mute quickly rejected that Theory and the blockchain security firm Blox SEC analyzed Libra's reports and Concluded that it wasn't convincing Enough to accuse anyone at winter mute You see the problem is it's near Impossible to prove Insider involvement In defi hacks due to a mixture of Complexity and of course the anonymity Of blockchain transactions not to Mention all the ways the stolen crypto Is washed and redistributed using mixers There's almost some irony to all of this As so much of crypto is seen as Trustless and yet trusting those you Work with in crypto is more important Than trusting those you work with Outside of it William subber wrote a Piece yesterday using coin Telegraph Markets Pro and trading view data to Analyze the performance of coinbase's Stock showing just how strong its upward Trend has been as William points out Coinbase's stock coin and bitcoin's

Price have been somewhat correlated but Recently as bullish as the sentiment Around Bitcoin is for all the reasons We've discussed the coin stock is in a League of its own as of the 19th of December coin has seen maximum gains of 400% in 2023 and some Traders believe That this trend will continue I am not a Financial analyst but it seems like such A complex area to untangle for example I Wonder if there's an interesting Counterpoint to the continued growth That's projected if you remember earlier This week we discussed the ETF store President Nate gari and his comment that The spot Bitcoin ETFs could cause a Bloodbath for crypto exchanges due to ETFs having far lower fees to trade the Fee for ETF trades are usually around 0.01 % whereas it's as high as 0.6% on Coinbase as I said in that episode on The 19th trading fees account for 77% of Coinbase's total net revenue so is that Not a concern then again buying Bitcoin Through an ETF isn't quite the same as Holding it yourself and on that note Coinbase is the custodian of the Bitcoin For nine out of the 13 firms creating Spot Bitcoin ETFs I think it's important To highlight that even such highly Anticipated and largely positive stories In crypto are too complicated to be seen Seen through the lens of just one Narrative and on that

Note Tom Mitchell hill yesterday covered Some risks around the spot Bitcoin ETF Launch that few people are discussing This week the coinbase institutional Market call podcast had an episode Called the 2024 crypto forecast in which Coinbase's head of institutional Research David dong and Senior sales Trader Greg Sutton flagged two potential Risks the first is about institutions Sourcing Bitcoin dong and Sutton are Both referring to supply here saying you Need to buy Bitcoin from certain Regulated places what if demand is so Great that these guys are unable to Acquire the Bitcoin they need what I Think is particularly interesting here Is the regulated places part we've Discussed this a little this week Because this is part of the reason that The spot Bitcoin ETFs are using a cash Model as opposed to the proposed in-kind Model that black rock wanted the reason The SEC do not want an in kind model for The spot Bitcoin ETFs at least what many Have theorized is that the SEC want it To be clear where the ETFs get their Underlying Bitcoin from that is they Want it to only come from reputable Exchanges though as many ETF experts Have observed on X this doesn't Magically solve money laundering with Bitcoin the second risk is a bit more Trader but I'll make it straightforward

Sutton worries that the popular Institutional Trader strategy known as Basis trade will become far less Profitable and that could negatively Impact the market a basis trade is Essentially when there is a difference Between the spot price where you buy Bitcoin right now and a Futures Contract Where you pay a certain amount on a Certain date for the Bitcoin so Traders Could buy at spot prices when it's Cheaper and then sell for closer to the Futures price the difference between Spot and Futures recently reached as Much as 20% the spot Bitcoin ETFs will Instead allow institutional investors to Use the ETF to invest in Bitcoin which Will cause the difference in price Between spots and Futures to shrink this Could impact liquidity alongside other Deeper Finance markers that are beyond My little brain these sorts of Considerations are important because a Lot of people in the crypto community See the spot Bitcoin ETFs as simply a Line goes up moment but they will bring About a lot of change some of which we May not have yet Predicted one of my favorite things on The Internet is by a website called 99 Bitcoins and it's called Bitcoin Obituaries this tool tracks the number Of times the mainstream Media or a Person with a significant following

Declares that Bitcoin is dead in an Article we're not just talking about Clickbait headlines or tweets the Content and I quote the tools guidelines Here must be explicit about the fact That Bitcoin is or will be worthless no Maybe no could since 2010 the to reports That Bitcoin has died 474 times the first death occurred back On the 15th of December 2010 when it was Said that Bitcoin cannot be a currency And the most recent death was on the 22nd of April 2023 where the 1.6 million Follower VC chamoth palatia said that Crypto is dead in America on the all-in Podcast though In fairness as Martin Young pointed out it seems as though Thisit uary is more about regulatory Overreach than any personal feelings Toward crypto well as we near the close Of 2023 there are some interesting Statistics to be had from the charts Generally and expectedly Bitcoin Obituaries Spike during crashes and Crypto Winters 2017 was the worst year For Bitcoin mistakenly being pronounced Dead with 124 instances and not far Behind that was the rough year of 2018 In third place is again unsurprisingly 2021 as FTX went under and Bitcoin was In freeall although I think this is Highly entertaining and I would like Nothing more than to go through some of These headlines you might wonder why I'm

Telling you this well 2023 has seen only Seven obituaries for Bitcoin the lowest In over 10 years you'd have to go back All the way to 2012 to see a lower Number the professional Trader Oliver Elves commented on X saying in two to Three more cycles each cycle is four Years there will be no Bitcoin Obituaries at this time saying Bitcoin Is going to die will be as silly as Saying air is going to fail we are Trending there I don't often set Listener tasks but I would love someone To work out for me how much profit you Would have made if you bought Bitcoin on Every single one of the 474 times it was Pronounced Dead that was a fun story to end on but That is it for today consider yourself Informed thank you for listening to the Ryzen crypto podcast by coin Telegraph If you're enjoying these daily updates Please make sure you let us know by Following subscribing or leaving a Review have a great day let's do this Again tomorrow Here

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

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