 Once again, ladies, gentlemen, boys and girls, and children, ladies, you're now tuned in to the Investor Show. As always, this is your greatest host, Prince of Investment, coming to you guys and girls live all the way from the beautiful city and state of Denver, Colorado, via Honolulu, Hawaii. Don't forget to hit that like, subscribe, comment, share button. And as always, I don't have a lot of time, and I definitely know you guys and girls don't have a lot of time, so we're going to shoot, jump, not shoot, but jump straight into it. All right, you all, you guys and girls have heard it. As of January 10th, the SEC has come out and said that they are, they have approved 10 Bitcoin ETFs, or spot ETFs or ETPs and things like that. This episode, that's exactly what we're going to do. We're going to talk about the ETFs. What does that mean? A look inside of them. Why is, why is Wall Street so interested in them? What is the SEC? Why are they the governing body? How did this happen? All those are the great things. So you guys and girls, stay tuned. So the first thing is, what is the SEC? The SEC is the governing body. It was created in the acts of 1933 and 1934. Like I used to always hear the military, hey, this is, this is law or this is written in blood. I used to think like written in blood, what does it mean? Is it that serious? No, it means that something has happened in the past that has created these laws or regulations. A prime example, you may read somewhere, do not touch this with, do not touch this wire. Why does it say don't touch this wire? Because somebody probably got electrocuted touching that wire while trying to do laundry. I don't know what I'm just hypothetically speaking. So the SEC came about right after the Great Depression. Great Depression happened in 1929. At the worst fall in the stock market, you see, sent the strength to the Great Depression on the crash of 29. Sent us straight into the Great Depression. This led us to create the securities acts of 1933 and 34. This was the haven of all of the regulation markets that you see today. Why do we need all this regulation? Because so many crazy, wild things had happened. People who shouldn't have had margin was using margin, using credit to buy stuff in the stocks. People, they were sketchy things on the market. I always reference this book called the greatest, the greatest trader ever, Jesse Livermore. Jesse Livermore talks about the market, how it was before the regulations came along, how he made so many profits, how you had so many dark pools, how people would get together and manipulate the market inside of trading at its worst, right? So to reinstall the confidence into the market, you had the SEC. The SEC became the watchdog to see what was out there to protect the consumers and investors. Because people would read a newspaper, and after they read that newspaper, they would say, hey, go buy, the newspaper ad would say go buy RCA stock. It has grown up 100% in the last year. So people would go out, take their money, put it into RCA, also go out and use credit, put it into RCA, put all this money into RCA just to realize that this was all manipulated. The RCA probably wasn't a real company. The RCA was lying about its finances. It was a pumping dump. We know what pumping dumps are, and when you're pumping up a stock, right? So you have people behind the scenes that will pump up and market this particular stock from one penny, all the way up to $20, have the common people get in, take it up to $50, then all the insiders get out, not at dumping it, right? So you had all that stuff happen that was very common on the market before the SEC came along. We learned that lesson. Great crash of $29 happened. Let us do the Great Depression. People lost all type of trust into the stock market. They lost trust into the financial system because so many people lost everything they had worked for, everything they had had. So right here, ladies and gentlemen, this is why we had the SEC, the Security Exchange Commission. So now this should give you the story to why when you have the Security Exchange Exchange Commission, this should give you the story of why people are so worried about this stuff. Why is that? Because they're trying to protect the investors. They don't want investors to get into something that's straight criminal. There's somebody that's scheming and scamming and pondering schemes and stuff like that. So before you are trading on the public market, you have to get registered with the SEC. For myself, for example, I'm a registered investment advisor here in Denver, Colorado. I'm registered with the SEC. You can go to brokercheck.com, put in my name. You can see what firms I work with. You can see what licenses I hold. When did I get those license? When did I register the firm's assets under management? Everything is an open book, right? That's what the SEC does. So the SEC has to look in to make sure to protect the public interest and the public worth all, right? So the first thing is, the first thing we look at is, now we know what the SEC is for. The SEC, they looked at the first Bitcoin ETF with grayscale. So grayscale brought it up and the SEC just denied them, right? Well, grayscale did not like it, right? They say, hey, you know, grayscale said, why don't you deny us? You deny us for this reason? Why did you do this? What was your reasoning and all the other good stuff, right? And they said, hey, the reasoning for doing this was, they didn't give them a reason. We don't owe you an explanation. They just didn't give them a reason. So grayscale took it to the court of appeals and the court of appeals said, hey, a security exchange commission, you at least owe them a reason of why, why not, why didn't you approve it? And they put it back up. So they put it back up. And now the SEC has said that, hey, we don't endorse. We don't change our position on cryptocurrency. We're just looking at this particular product as we're looking at this particular product as is it safe enough to be on the particular market? So that's what they did. They looked at the particular product. They saw it's eligible to go into the market. And as long as it follows the security exchange commission, as long as it does everything that it reports its filings, it follows the rules of the road, they said, hey, why wouldn't we allow this to be traded? So they allow these spot ETFs. They declined 20 spot ETFs. They, you know, they approve 10. Now that we have these 10 ETFs, you got to ask yourself this question. Everybody in the cryptocurrency world says, hey, this is a huge victory. This is a huge victory for cryptocurrency. Not why I think everybody think it is a huge victory. It is a huge victory in my opinion because it brings to popularization. It brings accessibility to the market, right? Now it kind of give this credibility to it, right? Now retail investors, because you know, all before to get Bitcoin, you had to go use these other underground markets, right? You had to go, you know, download a certain app. You know, crypto.com, you heard the Coinbase is probably the most solid one out there, where there's the ones inside the crypto market, right? So what ended up happening was they looked at all these things in the crypto market. They looked at all these things and they turned around and said, hey, we're going to approve 10 spot ETFs. So the reason why Wall Street is into it, because I tell people, you got to ask yourself, why is Wall Street is so interested now? Why do they want to get into Bitcoin? Because one, this commercialization is happening to crypto currencies, making it more accessible, making people more likely to be in their 401Ks and retirements. It's raising money for the industry itself. Now, a lot of people thought, oh man, all this money is going to dump into crypto currency and it's going to shoot it up through the moon, right? That's not exactly true. What an ETF and an ETP is, is it tracks an index or an underlining asset? Let's say for hypothetical reasons, I created an ETF. You know, ETF costs about a million dollars to start and run with all the fees or whatever. Not to start, but to keep up and running. You're going to expect to spend about a million dollars. So you create this ETF. This ETF means nothing unless people are investing money into it. Well, how do I get people to invest money into it? So Wall Street set back and say, wow, we have this huge demand of people that want crypto currencies, right? And how can we take this huge demand of cryptocurrency and give them a vehicle to be able to get access to the cryptocurrency market? So you come, you know, when there's a problem, entrepreneurs are going to come there and solve it because there's money to be made. So for prime example, you look at, let's say Fidelity, BlackRock, all these other people, they got these, they created these ETFs and these ETFs were created for the simple fact of collecting fees, in my opinion, right? They know they're going to, they're going to collect a 1%, 2%, B. They know it's popular and hot. We already had like a Bitcoin ETF called BITO, which, but that only was impacted by the futures of the market. So now what they're going to do, they're going to turn around and put the, they're going to turn around and take the market and say, hey, we only going to want this market for 30, no, for 3, 1 to 2%. So they created this ETF now and all this ETF is going to do is track the performance of Bitcoin. Track, that's what the ETF is doing. It is that it was going to buy a bunch of Bitcoin. It said it was going to track the performance of Bitcoin. So I see everybody going around, hey, Fidelity is getting into the business of Bitcoin. They're going to buy Bitcoin. I'm like, well, are they familiar with what an ETF is? An ETF tracks. I can create an ETF today to track Warren Buffett, right? Warren Buffett fund. Warren does this. I do this. The shares started at 30 bucks. If his portfolio does this, I do this. So it's mirror, it's mirror, it's almost mimicking someone, but it's not actually holding up cryptocurrencies. That's the misconception I think that most people are not paying attention to. They're putting it, when you buy an ETF, it does not mean you own the underlying asset. It means you can benefit from the moving of the moving of the underlying asset. So so many people are saying, oh, Fidelity is going to pump trillions into the cryptocurrency market. No, if I go and buy that ETF, my ETF is going to track the performance of the market, right? It is not going to, it's going to track the performance of the underlying asset of Bitcoin. Bitcoin price go up, the ETF goes up. Bitcoin price go down, the Bitcoin, you know, it's going to go down. It's two totally different things. If I went out and spent $40,000 and brought one Bitcoin, right? First is if I spent $100,000 and brought one Bitcoin. I took $30,000 and brought one Bitcoin, or I took $30,000 and brought one Bitcoin ETF. One, if I brought one Bitcoin, I now own the asset, meaning it goes up, it goes up. I made $10%, I made $3,000 because I paid $30,000 forward. All those are good things, right? I can sell it, I own the actual asset. First is if I go get the ETF, I own a derivative of that asset, you know? For prime example, you can go purchase a gold ETF. Doesn't mean you own gold inside of your portfolio. It means that you own a device that tracks the performance of gold. So you can go call your local bank or your local gold trust and go in and say, hey, give me five bars of gold for, I don't know how much a bar of gold is going for today. Let's just say $100, which I know is very undervalued. But let's say I go buy a gold bar for $100. I put it in my house, I own this gold. First, if I take $100, can I go buy GLD? GLD is a gold ETF, right? That means that I'm going to benefit from the performance of gold. Doesn't mean I'm actually going to hold gold. Hope you guys follow me there. So if I own a bunch of gold ETFs, doesn't mean I'm going to go in one day and just say, hey, let me go get this gold. I can purchase this gold now, right? But that's something I want people to keep in mind. Another thing is a good thing about this, we have the SEC, they're going to be doing filings. They have to do their filings with the SEC. So the SEC, for prime example, we have the financial industry is going to start reporting next week if I'm not mistaken, if not this week, they're going to start, we're going into earnings season. Going to have the financial industry usually followed by, I think, tech or something like that. All these industries have to do their filing and reporting. If they don't do their filing and reporting, they could be delisted. So with this cryptocurrency ETFs, spot ETFs, you know, they're going to have to report the SEC, which gives you more governance and gives you a watchdog, doesn't mean your thing is safe. And the SEC said that in their recent statement, I don't have it pulled up in front of me. But they said, hey, do not take this as a way that we have approved cryptocurrency. This is just something just to show that we are allowing it to be traded if it's placed within the warehouse. Now, we spoke about why you have these endorsements happening. Wall Street is getting into this game because of the demand. And maybe they know something that I don't know, right? But from what I can see, they haven't invested interest in everyday people putting their money in cryptocurrencies because they found a way to benefit from it. They can benefit from this due to the fact that people are trying to find ways, places to put money. And you know, we all heard stories, cryptocurrencies. I tell people now, I use them as lottery tickets. I'm sorry. I said it's a bad thing, but hey, that's how I look at them. So that's why you got to be careful with Wall Street being involved with them. Now with these 10, you have Fidelity. You also have Grayscale. I'm not sure if Vanguard was on that list. I don't have the list directly in front of me. But one of the ones I looked inside of was Fidelity, FBTC. Foxtrot, Bravo, Tango, Charlie. And the next one is Fidelity's Bitcoin ETF, Spot ETF. And it said about $38 as of, yes, last night when the market closed. So all it's going to do is follow the price of Bitcoin. So what I did, I looked up online to try to find how much would this thing cost. I wanted to find out how much it would cost and how much would it be if we went out and found this particular Bitcoin. So when I looked up their prospectus, the prospectus is the document that shows everything you must have. When I looked up the prospectus, they didn't have any information as of last night. They just got onto the market January 11th. So I wanted to see how much money was in it. What was the holdings, autos are the good thing. What was the fee structure, all those things, right? Which I expected to be pretty low because it is a passive ETF and a passive ETF just tracks. A passive ETF is not actively managed. This means that one person can just look at it and just kind of move on, right? So when you look at this, this is a huge win. This is a way for retail investors. And when I say retail investors, we're talking about people with the E-Trade Interactive Brokers account who may have an individual brokerage account, who may want to expose their children to it, buy some for their kids, stuff like that. Or this could be looking at it as far as crypto currencies, right? Looking at it as far as getting access to retirement accounts. So those things are the three biggest things that you can see now. And also, I want to get into the difference between ETPs, ETNs, and ETFs. So you got notes, you got products, and you got funds, right? So this is an ETP and some people call it ETP ETF. It's a exchange-traded product. So all this thing is going to do is look at, hey, we're going to track the product. For a prime example, you could create an ETF that's going to track the growth rate of elephants in South Africa. And people can invest into the growth rate of South African elephants and track it on a particular market. So the SEC, this is a huge step forward. Now that they've started to create an ETF, maybe they may go further. Or maybe not, right? So those are the cool things we must pay attention to. The other thing I want to hit on with this is you're seeing a lot of endorsements starting to come out, right? What's happening with this ETP, now you can buy and sell it every day. Meaning you can use your favorite day trading formulas on it, right? You can use your favorite day trading formulas on it. You can see what's going to happen and when is it going to collapse and when is it going to go up? All those other type of things, right? So those are things you've got to pay attention to in the particular market as you pay attention to the market today, right? So pay attention to the ETFs, you can get exposure. If you own an E-Trade, if you own an Interactive Brokers, if you have a 401k land around somewhere, you can benefit from the price of Bitcoin going up or down, you know, via the ETFs. It's the same thing, ETFs are nothing new. You have ETFs that travels, that follows all type of industries, beauty, S&P 500, the NASDAQ, derivatives short, tall. I'm talking about short, I meant long. Short long, you know, long is on the bullish side, bear side, and I'm sorry, long is on the bullish side, and the short is on the bear side. I mean, you can bet against the market, bet against the NASDAQ. It's ETPs that use derivatives. It's a derivative that follows something else, right? It's just like when you buy a call contract, I buy 100 shares, 100, I buy one contract, which is 100 shares of Apple, and I can buy it and sell it. I don't even own Apple. I can buy it and sell it because it is a derivative that has an underlining asset that it follows. So that was another big thing that I wanted to bring up. And we know the SEC, this is an ongoing process, meaning they can pull this off at any time. We probably remember when this happened with the AMC. You had AMC. I forgot these other stocks that was in there. People were manipulating and vying for $2 and shooting the market up or whatever. And you saw how they got delisted. People closed off the computers, investigated the company. So yeah, that's the way you want to look at it. You look at different investments that are out there. So the ETPs usually in chain-shared products usually have very low volume, but with all the hype around Bitcoin and all the hype around these different things, I think we might be in for a surprise, right? So those are the things you want to pay attention to as you're navigating and going through this particular market. Because so many people are like, oh, this is the end Bitcoin has made it. Definitely made a giant step forward, being commercialized, and people getting involved with it all some type of way. They're looking out the window, but they haven't gotten in the bed all the way. So time will tell. Time is going to be the greatest measure. Time will tell us the most what we're looking for and what we want to know as well. So inside of these ETPs right now, you're looking at some of their perspectives. A lot of them are just saying, hey, we're going to be a derivative and we're going to watch Bitcoin and if Bitcoin go up, we're going to make our shares go up. Bitcoin goes down, our shares will go down. So now the big thing is more players involved, more people can play. And we now have Bitcoin, 10 Bitcoin ETFs that are out there that you can go shop around and take a look at. I know my generation, you know, we're about that late 30s, mid to late 30s, early 40s generation. That generation there, some of us really believe in Bitcoin, but some of us got burned in the last couple of years, you know, when Bitcoin started taking those dive, you know, because nobody cares about how great an investment is doing as long as they're making money. It's not to the point where they're no longer making money is when everybody starts to get nervous. So the thing is I've always wondered the thing that get cryptocurrency is very great spell and very great things that don't market was, you know, a good marketing pitch, a good marketing promotion and people said that it can travel fast, it can do all type of things, right? But my question has always been, has Bitcoin really has shown us what it can do? AI, AI has shown us, hey, we can write a story, we can write a podcast, we can write a book, we can write an article, we can write a press release. We know who Prince Dykes is, we know who his wife is. We know, you kind of got all AI has shown is value versus with Bitcoin. Most people just get it because it goes up in price. I haven't seen too many people get it and then take it to a vending machine and buy a cup of ice cream, all that stuff. Most people get it because they hear, hey, it's a good investment. I bought one share for 20,000 bucks and hopefully one day it can go up to millions of dollars, right? Which is kind of untrue because not that Bitcoin won't go up. It's just that most people that are in today at this price and let's say it's Bitcoin sky rack is to $1,000. How many people are going to hold on to those shares? Not that many. Now, I know what you're going to tell me. Some of y'all are going to DM me on Prince. I would have easily done this and I would have looking forward to, I would, yeah. I was talking to my father-in-law. He was saying, man, I had the opportunity to buy Apple back in the 70s and I decided not to do it and I look at Apple today. And I said, well, you know what? To be honest with you, had you brought Apple, I don't think you would have kept it for 40 years. I think you probably haven't had it as soon as it doubled. You made 100% of your money. You'd have been like, yeah, I'm out. I made 100% of my money. I made 200% of my money. So how many people will hold them if Bitcoin start to repeat their tariff back in 2020, 2021, I think when everybody became cryptocurrency experts. I was supposed to talk about it on my show. I went down to sit down with some Bitcoin people. All those things start bringing on Bitcoin people to see what people wanted the cryptocurrencies. But yeah, that was definitely a time to be alive. You don't see that anymore, but you can easily get somebody with your program because you can just tell them, hey, we're doing something that's going to create generational wealth. And you might be able to find somebody who is in agreement with you and wants to share your things with you. So yes, that is your Bitcoin ETF. That's a quick snapshot look inside of it. A lot of information is not out there as much on Bitcoin because of, you know, it's pretty new. Just came out July, not June, I'm sorry, June 11th, last week, Thursday. So here we are at the end of Tuesday. It's only been on the market for three days. So it has a lot of testing and trial and two, at least ETFs. What Bitcoin is going to do is start to render his head and try to make a comeback. What is it going to do? What is it going to say? So, yeah, definitely got to watch it, you know, watch and see what happens in the world today. It's definitely a great step forward, a great step for Coinbase, a great step for, you know, people who, I guess, who own the cryptocurrencies, but time will tell. And Oliver Lech, Shout to Oliver Lech, he's been a very good point. And he said, you know what? Bitcoin doesn't need the public market. It has shown that. Very good point because usually when companies get to the SEC, they've been on the market for a while. They've been established for a while. They work their way up. All these other good things, right? Bitcoin kind of came out of nowhere. And once it came out of nowhere, people don't know, hey, what does this thing mean? How does it operate? How does it do everything? Right? So Bitcoin has shown that it knows how to turn it to, I don't even know how much Bitcoin is worth now. Multi-billions of dollars, at least billions, billions of dollars asset was created offline from the market. So when you look at the flat line of how did the stocks perform versus how did Bitcoin perform, Bitcoin is nowhere near closed. Right? So I've seen the notion that, hey, Bitcoin doesn't need Wall Street. Wall Street needs Bitcoin. Which you guys and girls think, right? Wall Street doesn't need Bitcoin. Bitcoin needs Wall Street when you look at the rate of return. Over the last two year tear, I mean last year wasn't too good in 2023 for Bitcoin. But 21 and 22 had a great years, right? You couldn't turn away. Everybody was either creating a cryptocurrency, naming their kids behind a cryptocurrency. They was looking to buy cryptocurrency, right? Last year wasn't a hot year. A lot of people got off the bandwagon. So, yeah, so that's a quick look, a quick dive into the SEC and the Bitcoin ruling. I hope you guys and girls got something out of this episode. I hope you, if you got any questions, you could definitely drop a comment below. Tell me what you think about this Bitcoin ETF. Will you be buying a Bitcoin ETF? Do you think it's a great idea? Or do you think this was bad? The SEC allows something like this to come along. After Charlie Munger said, this is crazy. RRP to Charlie Munger, right? So that's going to conclude today's topic. Today's episode, as always, my name is Prince Dykes. I'm the Prince of Investment. Until the next video podcast, Cartoon, or whatever else crazy you see me do around the globe. And I almost forgot one thing. Check out my book series, Wesley Learns. Wesley Learns to Invest, Wesley Learns by Credit, and Wesley Learns by Insurance. And come April 12th, if you didn't know, if you didn't guess it, go tell your mom and them and all your friends. I'm writing my fourth book in my series. It's been published titled, Wesley Learns about Real Estate. Those kids will learn about investing, credit, insurance, and real estate if you propose these, you know, with this book series. And we're going to turn kids into first-time shareholders of stock. So ladies and gentlemen, that's me, Prince Dykes, the founder of the Global Children's Financial Leadership Foundation, Royal Financial Investment Group, and the host of Think Tech Hawaii, the Prince of Investment. Until the next video podcast, Cartoon, whatever else crazy you see me do around the globe. I'll be sure y'all come out this time. Please be safe. I'm out and thank you.