 Hello everybody, welcome to the Tuesday live stream. So this is a good one. This was a was an interesting Interview and this is on CNBC and what I liked about this one It kind of pulled back the curtain as to just not the ETS But what's going on behind the scenes of the ETS? We're gonna take a look at what's a percentage of Retail versus investors coming in how much it's actually Accelerating the kind of warnings that Gary Gensler has been giving and then what does talk about? Shorting the market which me personally. I'm not a big fan of but what are you gonna do? So this right here? This was a clip again from CNBC This is the chief investment officer Matt Hogan and he is from bitwise and bitwise is one of the Numerous spot Bitcoin ETFs and they're pretty much right in the middle as far as like assets I mean, they're not the huge black rock or gray scale They're not really down the dumps as far as like wisdom tree and Franklin Templeton They've got quite a bit of skin in the game So I like to hear about what's going on and let's just take a listen. So before we do that Let me first say thanks everybody for stopping by. It's always nice but let's make sure you can hear this perfectly and we're gonna go over four or five different snippets or clips here and Let's start right here It's hard of course Bob to get a precise feel for retail versus institutional But I can say a bit wise what we're seeing in BITB is a large number of types of investors allocating We're definitely seeing retail investors allocating, you know self-directed individuals But we have an increasing number of registered investment advisors who are allocating into our fund We're having hedge funds allocating into our fund BITB is being bought by venture capital funds and others and I think we're gonna see some other major Unlocks in the future. So I can't give you percentages on retail versus professional I know a lot of people wish we could but of course in ETFs that difficult But we can tell you for sure that there are a significant number of professional investors Buying millions and tens of millions of dollars of BITB and I assume other ETFs as well So it's it's both markets right now Great, so if anybody out there is saying, ah, you know what we know exactly how much is actually happening We see that there's a massive amount of institutions You just heard from the CIO of one of the again the largest spot Bitcoin ETFs He's pretty much telling you he's like look we've got a lot of people coming in I can't tell you exactly what it is We think it's this but it could be something else So it's one of those things where you have to just say, okay We we know things are accelerating sounds pretty good But as far as like the exact percentages, we don't really know and then this next piece he's gonna talk about Wirehouses and how things are actually moving and when we're talking about this I need to need you to kind of understand what he's talking about because I Everybody knows that so we take a look here. What are wire houses? This would be like the Investment advisors financial planning retirement planning the state planning investment products and investment research and as there's a whole host of different Organizations and head funds that will actually help you with that But when he talks about wire house services, it was interesting to know just how far along they are and just how much they're actually Accelerating and that's where we talked about as far as like with the thumbnail on the title itself of this video because When we hear about these things and we know things are doing quite well We see number go up everybody's happy But just how much is it and how much is on the back end because that's great that we're doing, you know Fantastic things right now. We're seeing a massive push into it But is that it or is there another pump behind the pump? And I think that's just something Important to take a look at so again just take a listen to this This is about a minute or so about how things are accelerating and kind of makes you bullish But take it with a grain of salt and we'll talk about the next piece in just a second Institutional acceptance or resistance. Are we seeing I mean the wire houses for example is Merrill Lynch or Morgan Stanley or JP Morgan Do they allow it in there in there on their trading platforms? I Think what we're seeing is different parts of the institutional community reacting with different levels of speed So registered investment advisors Independent FAs could buy it on day one and they were buying it hedge funds could buy it on day one and they were buying it As you go up the chain to wire houses or pensions or endowments They have their own due diligence processes that takes weeks months sometimes quarters sometimes even years But I will say that from the day these launched to today That process has moved faster than I expected at first people were saying it could take a year Then it could take half a year then it could take a quarter Then it was a few months and we keep getting calls every day. Can we talk today? Can we talk tomorrow? We have to accelerate this thing So the wire houses are still coming most advisors can't buy it on a solicited basis there but they're going to turn on I believe soon eventually everyone will be able to access these ETFs and That'll be great for flows. I think it would mean another uptick for flows in the future So okay, so before we get on to that to the next piece and we're gonna talk about shorting which Hey F have at it, right? But it's interesting that you know he talks about he's like, you know, we're seeing accelerating people really coming in But does that mean that we're gonna go in a straight line straight up? No, I don't know what the price is right now today I mean in the morning it looks pretty good selling 172 doesn't mean it can't go down And of course when we hear about like all this hope him, you know, we we we tune in we watch these YouTube videos We get super excited never like whatever the price This is not a thing that just goes over and all from one night to the next and we have this This green God candle so I think there's people in the trenches behind the scenes that are going okay We want to get in we really do we're trying to accelerate it But for the legal aspects and everything we have to do as far as due diligence and daughter daughter eyes and cross our Tees it's gonna take a little bit of time We're trying to accelerate as much as possible, but we're not there yet, but it is quite a bullish sentiment so now the next piece we're gonna talk about shorting because There's always another side to this so for every people every individual every institution that's buying There's another side of people who want to sell who want to shorten That's just the way it is. There's nothing I get wrong with that. You know, this is a free market I'm pretty sure I hope so so right now. We're gonna take a listen. This is Simeon Hyman and he's the head of Pro shares. He's gonna talk about Shorting and when he talks about shorting just listen to how calm he is when he's talking about it It was quite surprising then I kind of figured out I'm like, oh that makes total sense. So just take a listen here Simeon You the only one that's got a short Bitcoin Out there those of you who don't know put up the Simeon short Bitcoin ETF when Bitcoin hit a new high last week The short Bitcoin ETF yours hit a record in trading volume That was interesting to me and both the Bitcoin futures ETF and the short Bitcoin futures have had strong inflows this year So your business which is that that the futures business isn't it seems only to strengthen by these we had to quote Mark Twain The reports of our death have been quite exaggerated Biddo on the long side is prospered $400 million of inflows this year and we think it's a part a testament to the efficacy of the futures approach our Premium to discount NAV is de minimis and there's still a gap there in the spot folks that have launched So a very important attribute there Strong strong flows and of course you mentioned the short side So BITI seeing flows as well and we're happy to be here And we think we're serving as a as a key alternative and I'll listen to the same question So yeah, so do you see how like just nonchalance like yeah, we're shorting we're doing this we're we're allowing it And that's fine. That's really what it is But I want you to notice that of course when you have something like that and people are saying ah, you know just going short I Don't know how much skin he's got in the game But I'm pretty sure that he's going to charge some fees for that And if his clients are like hey didn't work out for me because I shorted you like well that's just unfortunately a little bit too bad and That's how essentially the whole Market goes so if you're into shorting and you listen to people who say to short and you do that and it doesn't work out It's not on them. It's on you. So then the last couple pieces. I think this is important and it's important because We're in the trenches all the time, right? We've been here for quite quite a span of Time itself, especially through the bear market now we're going to the bull market So things that we talk about are second nature and we sometimes forget about the people That are trying are just getting in right now and some of these things just kind of go over their head. So again Let's take a listen here. This is going to be Matt Hogan. He's gonna talk about the having and What I want to talk about after he gets done is just how important it is to kind of explain this to people because I'm going to share an example of a friend that actually contacted me and said hey There's this having going on. So does that mean that half of my Bitcoin's gone? Works so anyhow, just take a listen to this and again, I think this is another another aspect to the whole Parts as far as the acceleration Mention the having is coming up in April What the having is is when the amount of new Bitcoin produced each day falls in half right now Bitcoin creates about 900 Bitcoin a day and after April, it's only going to be about 450 a way for you know listeners to think about that is the total amount of new supply of Bitcoin coming into the market We'll shrink by about ten billion dollars a year Starting in April What's driving the Bitcoin market right now is a simple demand supply imbalance We have this huge new source of demand from these ETFs and we have supply that's inelastic and actually in April That new supply is going to fall in half That means you know if these things stay the same the price has to adjust upwards until we Unlock some long-term holders who are willing to set well this way. Yeah, so I mean it makes a lot of sense, right? We all know this but the having it's all great It's all good just remember that the people that are going to talk to you and like hey What about this having and how does this all work just remind them to make this as super simple as you possibly can Just remind that we haven't mined all the Bitcoin right now. We have mine approximately This is from buy Bitcoin world wide calm total Bitcoin in existence Actually, it should say mind But I guess it's in existence because you can actually trade it hasn't been mined yet is 19 million six hundred fifty two thousand three to one Just from just nineteen and a half million. So I gotta remember right 93% of bitcoins have been issued We still got 1.3 bitcoins left to be mined. There's 900 bitcoins being produced per day by the miners in April 20th Roughly it'll be 450 and then when people are gonna ask you like okay, that makes sense I'm not gonna lose half of Bitcoin. No, it's just that the miners they're gonna do the same amount of work I'm only got half pay which is crazy, but that's just how it works The thing I want you to remind them is that is this When will the last Bitcoin be mined it'll be sometime in the year 2140 so when people are asking the question like well, how long is it gonna take it's gonna take a long time and That's just something to remind people. I know we know it, but it's important that they understand it in the last piece kind of reluctant to talk about this but this was a Warning from Gary Genzler and of course, we're always talking about Regulation and how things are going unfortunately, the SEC has been pretty pretty poor as far as their win ratio For enforcement through regulation, but it is what it is So again what we're gonna hear is I'm as gonna talk about what he has heard from Gary Genzler and how this is going to affect the clients and the Investment advisors and everybody else. So just take a listen to this last piece and then we'll move on from there So this will be a tip up up up right around here So you're sitting there It's hard to get on Morgan Stanley's platform or JP Morgan, you know There is Requirements and among them what you mentioned this word due diligence But one of the things I keep here when I talk to RIA is this suitability concern Genzler fired a shot at all of the investment community when he conceded they had lost on the Bitcoin debate But said may I remind everybody that under reg best interest reg bi you have suitability requirements You can't give Bitcoin to grandma if it's not suitable for grandma to have Bitcoin And he suddenly implied not suddenly subtly implied that they could be open to lawsuits at all I'm sure this is part of that that suitability the is the industry out trying to figure out what the legal Standards are at this point for suit for suitability. That seems to be a critical issue Well, the good news there Bob is that advisors have been doing this for years here at bit wise We've been serving financial advisors helping them access Bitcoin and other crypto assets for more than seven years So there are well established ways to solve that suitability question as you mentioned Bitcoin may not be for everyone It's a very volatile asset. It moves around a lot. Some people find it difficult to understand But for advisors who understand it who study the market who know their clients who understand the risks and opportunities and can Document that then they can find a way to solve for that problem again They've been doing it for years, but that's part and parcel of that due diligence There's also due diligence on the funds themselves on the custodians They use on the liquidity ecosystem, but importantly, this is the same for every asset It's just this is opening up a new asset class. And so we're having to do it. The good news is people are doing it quickly you know and Well said so yeah, you're gonna hear those types of things Gary again There's gonna be trotted out and all the different shows and talk about how danger it is and he said it and that and actually he's Right it is a little risky and it is volatile He's a hundred percent correct But when he goes out and says like, you know, really people should have to do with their due diligence It's so risky and we don't think this is right for grandma and da-da-da It kind of makes people a little bit hesitant and of course Matt told you right there He's like look there's a reason why the real estate investment or investment advisors because they have to go through a long Process and they have to tell everybody the risks and they have to use the different disclaimers Which the SEC has put forth he goes so we're doing our job Gary essentially what he should have said is we're doing our job Gary, please do yours But that's the other hearing are there so anyhow, let me know what you think about that in the comments section and It's not all Great news, I think although there is this one last piece that is pretty great, I don't know if you knew this but Go or Bitcoin just crossed over market cap for silver So it is in the number eight spot He was last a couple days or so and look it's roughly it's almost exactly 10% of gold market cap And if you heard the the clip we played yesterday talked about the difference between gold and Bitcoin You can understand just how fast it'll actually eat into gold's market cap And I'm I remember when I got in 2017 people were talking about this and they're like, yeah Maybe get 5% maybe 7 maybe 10% maybe 10% here. We are we're not even at the having so I think that's more bullishness also on top of this bullishness Thailand not that this is a big story It's not like Thailand has you know a massive amount of billionaires, but I could be wrong Talons SEC green lights investment funds from institutional wealthy individuals and crypto Earlier this year the regulator denied permission to trade Bitcoin ETFs. Talons SEC has made an exception. I hate this rule Essentially, it's if you've made money, you can make more money. That's accredited investors essentially It allows instant institutional investors and very high net worth individuals to invest in crypto exchange traded funds And that's about it. Again, if you don't meet that criteria Sorry, Charlie. You can't make anything but of course, it's risky, right? It's risky So I just thought it was just a nice little article to talk a little bit more bullishness, but it's not all great CPI so inflation numbers came out interesting and For some reason the economists keep getting it wrong We thought we'd be a 3.1 percent and it outpaced that it's now 3.2 percent. Remember, this is year-over-year We're still increasing in inflation. Yes, it is coming down But we're still going up they were thinking 3.1 now it's 3.2 I don't know what the traditional markets are but probably losing their minds because you know 0.1 percent is crazy But this is just what it is stubbornly high inflation so far in 2024 And of course, I know people were talking about well, you know Jerome Powell and the Fed they're gonna definitely lower the rates and no that's not going to happen Probably in the next FOMC meeting. They'll probably stay higher for longer like they like they've always said they could They could lower it but now with this with this report don't expect any rate cuts anytime soon and then just as a reminder, let me just steal Ben's information he won't mind and We can see here that as far as CPI numbers Year-over-year We were at 3.1 in January and now we're at a crazy wacky 3.17 rounded up to 3.2 So people might be losing their mind and and that's what it is But yeah, you don't you we can't discount the macro these are things We should be looking at because you know when the macro is strong and traditional markets are strong Then of course our market is strong, but that's not always going to be correlated like that We'll see how long it lasts but anyhow Let me know what you think about that in the comment section and then last things There's some vibes coming out that kind of makes me feel like 2021 vibes. This is from crypto tea. She says that Drake Posted the Michael sailor Bitcoin video on his Instagram story Drake the famous rapper has over 180 million people on Instagram So this should just expose them to it and I got to tell you once we start getting These celebrities coming in it's not a great sign But we'll see how it works out and then also some more vibes Even Jamie diamonds saying hey, he'll defend your right to buy a Bitcoin now before you go crazy It's not that big of a deal This was on a conference and he said Jamie Jamie diamond says look I defend your right to smoke a cigarette. I'll defend your right to buy a Bitcoin However, he added that he would personally never buy Bitcoin I do think it's a risk if you're a buyer when governments look at this stuff Why do they even put up with it? Great question and we talked about this with Donald Trump yesterday's He's actually softening on Bitcoin. So who knows what Jamie diamonds thinking, but that's it for today. So look Who liked today's video give it a thumbs up consider subscribing. I tried not to do too much. Hope him Because look, we don't know where things are going. It looks good But remember I've been here since 2017 It's both big one supposed to go to a million back then 2021 Bitcoin was going to go to million back then too and now here we are in 2024 And I keep hearing the same thing super cycle and community and diamond hands and million We'll see I just Just be careful out there because things are looking pretty good, which never know