Latest / The Paul Barron Crypto Show / SEC vs Ethereum Officially Over!! Ethereum ETF Might Be Huge

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SEC vs Ethereum Officially Over!! Ethereum ETF Might Be Huge · The Paul Barron Crypto Show

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  Today it could mark the biggest day in ethereum and of course the bullish,
• 0:11
  most bullish news that we've heard to date. This, of course we'll play
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  into, I think the future of where the ETFs are going. We'll break
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  it all down for you today. My name is Paul Berre. Welcome back
• 0:20
  in a tech path. I do want to thank our sponsor, and that
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  look at coinbase. Just use our link. All right, let's get into
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  it today. A couple of things I wanted to hit on was this article
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  right here. SEC closes the Ethereum two point zero investigation. They are not
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  going to pursue Ethereum enforcement action. There's a couple of points within the article
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  and zooment on that for you guys today. The Enforcement Division of the SEC
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  responded by notifying us that it is closing the investigation to the E two O
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  and will not pursue enforcement action in that light our Lossit also seeks or asks
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  the federal court to find that we neither act as a broker nor an issue
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  or securities through our software offerings, meta mass swaps, or staking. So
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  this looks fairly bullish for Ethereum. I think in essence, you kind of
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  look at where eth is right now, many people would say, well,
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  this could be the SEC lawsuit, could be the thing that causes the ETHTF
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  to not necessarily fly. So that's out of the way, and I'll explain
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  a little bit of what that means going forward. If you look at really
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  when it was breaking, there is a little bit of a point that you
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  should kind of consider here. The investigation wasn't just aimed at consensus. It
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  also covered a whole trove of people, which is anyone who contributed code,
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  anyone who bought in sold these. So it's really the entire ecosystem that is
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  now out from underneath the situation with ethereum. Now what does that mean for
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  other things like Robin Hood's case or even coinbasees case Robinhood Marcus remember they received
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  a notice for alligated alleged securities violations as a crypto unit. This was the
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  Wells notice. Of course, that still has not been settled. We won't
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  know if that's going to actually happen, but this is a good sign at
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  least in the sense that maybe we're seeing a little bit of a lighter touch
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  by the SEC. Stuart Alderadi though not so convinced on this big win for
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  Consensus, though, question remains, does this mean that the SEC thinks it
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  Consensus offers sales of ether not securities, because that's really kind of the big
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  question. But it's no way for a government to regulate. I totally agree
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  with him there is. We really just need to get an outline on this.
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  A lot of that I think will go and come through in terms of
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  an effect as we see regulatory outline really come out of Congress, which is
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  the biggest thing that really I think changes a lot of this. Other things
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  that are happening right now is the eth ETF and of course, this is
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  the big one right here, with the spot ETFs expected to be approved by
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  July. Second. We talked about this a little bit earder earlier. Balshunis
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  coming in from Blueberg. They were updating there over under, which basically means
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  they were moving it up obviously interestingly enough that this is just here a week
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  and a few days before July. Second, that this comes out kind of
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  interesting timing overall, so could be some very significant things happening now. It
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  doesn't mean that this is bullish for ETH on the ETF side, but is
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  it. I'm going to present two potential angles here and I'll let you guys
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  decide. Let's start with this first clip. Would people select the ETH ETF
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  over a Bitcoin ETF? Do you think they're sophisticated enough for that? Two
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  answers here. One. No, I just don't think ETH would be nearly
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  a big You're talking to boomers who probably know bitcoin more than either. It's
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  my personality that the demand for the Bitcoin ETFs will be multiples of what it
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  is for ethereum. So everyone keeps making these arguments to me and to Eric
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  that the theory of ETFs are going to be a bigger deal than bitcoin,
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  and there's nothing to indicate that is the case, all right, So that
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  was say for Balshonis, and then also Fidelity, there's our arms Venak.
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  There's a lot of people that these are very seasoned analysts on Wall Street that
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  are looking at the situation of ethereum, But at the same time, are
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  we really taking a look at the whole picture? Here here's Scaramuchi. He
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  goes into whether or not e flows will have similarity to what happened with the
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  Bitcoin ETF. Take a look, what's your opinion on the best pitch for
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  a spot ether ETF And if you're a baby boomer, if you're an old
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  fart like me, this is probably the best way to access it because you
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  can just call your broker and buy it and they can put the HUSIP number
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  and the security right into your account and you could look at it and stare
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  at it all day if you want, on the internet or on your app.
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  If you're a younger person, it's a harder sell because the returns of
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  staking is I think quite lucrative. Will people buy ethereum with the same amount
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  of fanfare as bitcoin? I believe that they won't. If you did sixty
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  billion with bitcoin, I would say you'll probably do in six months ten or
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  so billion dollars in ethereum. I mean, everybody, I think thinks it
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  will be less. It's just where exactly they think it will land. But
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  I think the other question you didn't ask it, but I'm going to answer
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  it anyway, is should it be less? And I think the answer to
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  that is no. And one of my partners here actually likes it more than
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  bitcoin. Huh. All right, So I'm kind of in that camp is
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  that I feel like this may be stronger and could surprise well straight again,
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  remember that all of these analysts were surprised at the popularity of the bitcoin etf
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  It has way outperformed what they thought would actually happen. Could that be the
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  case with ethereum. There there's a case here eth for the populace. And
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  what I mean by that is people understand profit, they understand dividends, they
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  understand traditional investing. I don't think you have to be a certain age to
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  get what ethereum means in terms of the future of finance. Let me go
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  to this next clip. It's a little bit long, but it explains a
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  little bit more of why this might happen. Take a look by asking if
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  you as an individual would take him by surprise at the pace of conversation around
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  a spot. Eth etf absolutely not. We were one of the few firms
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  that predicted, I think, on this show that it was going to happen,
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  and so I know the bears were prognosticating for quite some time about how
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  the odds were ten percent or you know. Now, I think the line
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  is that the Ethan flows will be lower than expected, but we'd happily fade
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  that as well, and we're firmly in the camp that eth is going to
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  be a huge beneficiary from these flows. That has the most stable coins,
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  it has higher feed based than Bitcoin, it has a dividend, it's deflationary.
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  This is an asset that people want to own. You know, there
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  is no future roadmap for bitcoin being either a future of a bug or a
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  bug in the sense that you know, Bitcoin is going to be bitcoin for
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  the next hundred years. Eth is at the forefront of the tokenization movement that's
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  going to really define the next few decades of traditional finance. We're going to
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  start with the stable coins, the one hundred billion dollars of stable coins that
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  are on chain today, but now black rocks bringing on fixed income, people
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  bringing on equities, people are bringing on commodities, people are bringing on private
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  credit. I would say it's more of a textile growth play. ETH is
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  Apple. It's building the app store of finance, and people are going to
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  be really surprised at the uniqueness of the fees and and just the scale of
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  the business that ETH is going to generate from the tokenization wave that's taking place.
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  And it's Larry Fink, it's all Tutor Jones, it's all these guys.
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  You know, they're all on this train. You're going to have that
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  same natural build up that Bitcoin had once it looked like it was going to
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  get approved. You're going to have additional sales and marketing that's going to happen.
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  To some extent. ETH is going to ride the coattails of all the
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  access that Bitcoin is created, the access into the rias, the financial advisors,
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  the wirehouses, and so when people think about the Magnificent seven, they
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  don't go all in on one of them. Maybe they do a peanut butter
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  spread, maybe they go overweight one of the other twenty twenty. You know,
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  Michael sailor was on the scene. We were buying digital gold. That
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  was going to be the only asset that we were going to buy in that
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  bull run. And sure enough, you know, eth bitcoin the ratio between
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  the two went up three x in the span of three months. You know,
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  we manage just around one point eight billion dollars today. We're a venture
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  firm at our core, but we play in the liquid markets as well,
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  and we're one of the few firms that's bought nine figures of crypto pretty consistently
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  on open market exchanges over time. And I can tell you from first and
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  experience that that moves the price pretty meaningfully. And eth is a much smaller
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  asset than bitcoin. It's a much more reflexive asset. There's much less of
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  it available. If you have you know, even pro rata the share of
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  flows to bitcoin by market cap, that is going to make a significant impact
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  in the market structure and flows of crypto writ large. This is kind of
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  a surprising decision for a lot of people the ETF but this has always been
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  baked into the cake for us. I don't really know. It's go with
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  the peanut butter jelly analogy. You got to if you're talking about Nvidia,
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  You've probably got a pretty thick peanut butter layer, all right, so you
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  can kind of look at it. There's a lot to break out there.
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  I think the key that many people get confused with with Ethereum is that the
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  masses don't understand it. And you know, I would argue that most investors
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  don't understand AI. Most investors don't understand, you know, the chip construct
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  of what in Nvidia is building from a GPU standpoint. There of course not
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  in that game. They're in the game of understanding the framework of technology,
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  and I think Ethereum can paint that framework in terms of a financial future.
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  They laid it out there pretty extensively in that clip, and I would agree
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  with that. I believe that that is the future. I think we're going
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  to see a much more marked position of Ethereum on this ETF Now that you
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  have the two key things that are starting to float into the market, which
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  is where the average investor starts to pay attention. One, the SEC drops
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  their lawsuit first big step. Two, you've got regulatory framework coming and they
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  know it's coming. And three, I guess three things is you've got the
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  major political landscape that are all talking about crypto, so that all brings it
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  to a head in the sense of it's safe, I'm ready to go bitcoins
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  already doing this, why not go ahead and take a harder bet on something
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  like ethereum. If you look at just the demographics here, this is the
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  gen generations. You know, obviously you look at Millennials eighty one to ninety
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  six aging out at twenty eight to forty three, Gen X mind forty four
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  to fifty nine, Boomers coming in from sixty to sixty nine, from fifty
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  five to sixty four. I think the investors that are going to come into
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  Ethereum are going to come from all of these categories. Now you're going to
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  have some of the younger crowd that is a little bit more comfortable with going
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  out and making their own trades, sure of course, but is that the
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  bulk of the money. Remember where the big investments are being made, big
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  investgence right now being made in probably more in the late stage millennial boomers and
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  Gen X. That's where most of the money is coming in from a couple
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  of other things that you kind of have to look at right here is how
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  time starved financial advisors are looking at other options. One of the things that
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  I'm pointing at right here average age of US financial advisors fifty six. Okay,
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  So there is another scenario that plays right into gen X. They're advising
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  a lot of boomers and a lot of gen x that have in most cases
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  larger portfolios that could easily slice out a certain characterization of what they want in
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  terms of the diversified assets and go into Ethereum or even to a mix of
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  ethan bitcoins. So I think that plays out in a very solid way for
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  where ethereum is going to be. Further into this, you look at just
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  where Bitcoin's entry points have been done. Well, guess what. The gen
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  X and boomers have all come in at lower positions on Bitcoin and not bad
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  really, you know, right known, In essence, they're outperforming the twenty
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  six to forty one crowd in terms of performance that entry price. So could
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  that be the case right now? Remember the value of ethereum, I think
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  is still very very low at under thirty five hundred bucks with where it has
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  been and at the stage we are in right now around this technology blockchain as
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  a whole, especially as we look at tokenized assets and securities coming on.
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  So if you think about this and you say, all right, well boomers
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  don't really understand this, why would they even listen to this? Look at
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  some of the key people out there that are already moving heavily into this market.
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  You've got Bob Eiger with Disney. He understands this. He's already been
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  in several startups. He's also launch a variety of different projects that are all
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  blockchain based. They've done tests after tests. Then of course you've got Tim
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  Draper. I would say he is probably the one guy out there in the
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  market right now that has been pro bitcoin, pro ethereum for quite some time.
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  And he is Silicon Valley staple, So he's talking to a lot of
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  other investors in his age group. They may not necessarily get it, but
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  they understand technology. Back to my point, and that's the I think that's
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  the killer app that is going to play out within this. I want to
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  go to another clip here because this is Tim Draper talking a little bit further
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  about this. Take a look web three projects are you interested in and why
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  people describe it in many different ways? Well, we funded unstoppable Domains.
• 13:45
  They were the first it allowed for people to own their own data. It
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  allowed for free speech. You can you know, say free Tibet in China.
• 13:58
  You know the woke population that seemed to think that they should be telling
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  us what we could say and not say. I mean, free speech is
• 14:05
  so important for everything, for innovation, for freedom, for free thinking,
• 14:13
  for debate. It eventually will be all in VR will be able to do
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  it. The big requirement of Web three is going to be identity. In
• 14:22
  fact, I'd be cool if I could show it, but I don't think
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  I can do that. Let's see how that works. I think you can,
• 14:30
  Well, you can do a screen share. I think that you know
• 14:33
  if you see at the bottom. All right, So Drorey Berman, I
• 14:37
  know how to screen share. But he knows what he's talking about when it
• 14:39
  comes to the future of where freedom is going to happen self, sovereign freedom,
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  and especially around sovereign finance, which is what we're seeing really evolve around
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  the world right now through blockchain is a critical thing. And the way he
• 14:54
  explained it, it's very simple, and it's very simple I think for other
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  people that are investors with large amounts of investment capital to understand, and I
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  think that will be the future of all of this, So let's look at
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  some of the activity around the market. One of course, is coming in
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  from Fidelity. This is Fidelity selling about twelve hundred and eighty bitcoin, that's
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  eighty three MILI. They've sold fifty five hundred bitcoin in four trading days.
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  And if you look at that, could this be a prep kind of zoom
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  in on that. Could this be a prep for possibly Fidelity, which we've
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  always said is probably one of the pro ethereum camps out there from a assets
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  under management group that would make a dent in the market. Is Fidelity prepping
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  for an ETHTF Maybe they are. So if that is the case, and
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  if they're looking at the kind of investors, could they be the blackrock of
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  eth maybe? Or maybe it's blackrock that becomes the blackrock of eth. Either
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  way, all of this still very bullish I think going forward now, if
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  you look at the charts, I'll look at ethereum real quick. Didn't see
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  a major move, but it did come back up and bump with a little
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  bit of positive move last night, thirty five to sixty trading. Still coming
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  into the sentiment zone right now as we continue to watch this one move around
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  a little bit Bitcoin of course, holding it around sixty five, somewhat stabilizing
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  right now, which was a zone that we had kind of looked at for
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  some good resistance. The next day or two is going to be very significant
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  for Bitcoin. But I think Ethereum still in a very good spot going forward.
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  You look at Solana, it's starting to maybe it has finally come off
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  of its bottom of a one thirty seven avalanche coming in here. Also reversed
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  back up about five percent on the day, So not bad for I think
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  where we are right now in this cycle. Could the all coins be in
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  a position to come back. We'll see. Maybe Eth will lead that charge.
• 16:49
  We'll find out here maybe in about ten days. All right, if
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  me out there on X just Appaul Baron. We'll catch you next time,
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  right here on techpath,