Latest / The Paul Barron Crypto Show / Cathie Wood Dumps Ethereum ETF Plans! Biden Vetoes Bank Crypto Custody!

Transcript

Cathie Wood Dumps Ethereum ETF Plans! Biden Vetoes Bank Crypto Custody! · The Paul Barron Crypto Show

• 0:07
  Big news today as Kathy Woods starts to exit the Ethereum ETF race, and
• 0:11
  we'll break all this down for you what this might mean for ethereum and is
• 0:14
  there another alternative amidst we'll take it all in. My name is bol Bara.
• 0:19
  Welcome back into tech path. Before we get started, I want to
• 0:21
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  Web three. So make sure and check it out. We'll always leave some
• 0:56
  links down below. Let's jump to this first tweet right here. Of course,
• 0:59
  everybody saw this on Friday afternoon, late in the day, and that
• 1:02
  is of course President Biden vetoed the bill that allows highly regulated financial firms known
• 1:07
  as banks to hold bitcoin and crypto. So basically this was SAB one twenty
• 1:11
  one issued by the SEC. President says, nope, we're going to hold
• 1:17
  the current situation. The SEC's position is the same, and that is banks
• 1:21
  will not be able to do that. That accurse, of course, happened
• 1:23
  all during the end of the weekend. I think till maybe Monday or Tuesday
• 1:27
  this week to actually do it, but he went ahead, vetoed it out
• 1:30
  there at the end of last week. A couple other points right here,
• 1:34
  eleanor Tarrett hitting on this. Apparently my wording was a little confusing, so
• 1:38
  I'm gonna say it again. The American Bankers Association asked Biden not to veto
• 1:42
  SAB one twenty one, siding with crypto. So the banks wanted in,
• 1:48
  and I think maybe crypto wanted the banks. I'm not completely sure on that.
• 1:53
  But the point is is that when you look at the American Bankers Association
• 1:57
  saying yes, that was a big statement by of course the President and the
• 2:01
  administration. Now, how much of an effect does this really have on the
• 2:06
  current bills that are in place. This would include FIT twenty one along with
• 2:09
  a stable coin bill, and many others that will probably be playing out before
• 2:14
  the November election. Here's, of course, an analyst Bernstein doubting that political
• 2:19
  influence in SEC spot etherre ETF approvals are going to happen after Biden's veto.
• 2:24
  So what his point is right here? I'll kind of scan down in here.
• 2:28
  Given the President vetoed the SAO twenty one repeal, the political narrative looks
• 2:32
  less credible and less likely that the SEC took a more pragmatic approach and avoided
• 2:38
  a legal battle, so basically saying, hey, we don't want to fight
• 2:40
  this out. We're going to go ahead and you know, push the eth
• 2:44
  ETFs through and off we go. The SEC knew it was in a corner
• 2:47
  on the e TTF and the same regulatory setup as Bitcoin, which was proven
• 2:52
  and is now a huge success, of course, and the CME eight futures
• 2:55
  market already signifying a commodity status, so that even makes it even more so.
• 3:01
  Overall, A couple of points that many people on X were kind of
• 3:05
  talking about here, of course, is bank let's kind of hearing on this
• 3:07
  finding just veto the only pro crypto bill ever to come across his desk.
• 3:10
  So first one, really this was a layupsib one twenty one, the anti
• 3:15
  crypto rule put in place by Gensler to stop banks from holding crypto hates it.
• 3:21
  The banks hate it, and all you had to do was not veto
• 3:24
  it, and you were in. This will cost to them. Now,
• 3:28
  this is the question mark this position right here, because many people just simply
• 3:32
  say, right now, we've got three candidates. You've got Kennedy, you've
• 3:36
  got Trump, and you've got Biden. Many people would simply say, well,
• 3:38
  all right, this tells us clearly that Biden is anti crypto, Trump
• 3:43
  is now pro crypto, and Kennedy is somewhat pro crypto. So how will
• 3:46
  the narrative play out, especially in this election as we start to say things
• 3:51
  going forward. Here's Nate Garassi kind of hitting on this. A lot of
• 3:53
  Wall Streets dismissed crypto, so this is another factor that plays into this.
• 3:59
  They feel like they're above it or perhaps threatened by it. But ironically,
• 4:02
  many of the biggest minds he knows are actually involved with or at least highly
• 4:06
  intrigued by crypto, and he's going to bet on those minds. So if
• 4:11
  you've got a lot of really smart people in Wall Street starting to lean this
• 4:15
  way. You've got pretty much the masses, a lot of retail, fifty
• 4:18
  million Americans starting to lean this way. Are we destined for a battle this
• 4:24
  summer around things like fit the fit bill as well as even the stable coins
• 4:30
  bills as they play out here through the summer election months. All of that
• 4:34
  I think is still going to be giving us a narrative going forward. Now,
• 4:39
  I want to look at a clip real quick, because this is talking
• 4:42
  about whether or not FIT twenty one can even get through. Take a look.
• 4:46
  The Biden administration didn't come out and say back Fit twenty one, but
• 4:50
  they didn't come out with as strong an opposition to FIT twenty one as they
• 4:55
  did with the SAD one twenty one repeal, where they came out with a
• 4:58
  pre veto stance. So you're seeing, just in a very short time period,
• 5:03
  a steep decline in the vehemence of the Biden administration against being anti crypto.
• 5:10
  So all of that is great to your shorter question about whether we see
• 5:14
  anything happen this year on FIT twenty one. I don't think, unfortunately,
• 5:17
  we'll see anything with fittweeny one this year. But that's just quite simply because
• 5:21
  we're running out of time in the congressional calendar and we are in a presidential
• 5:26
  election year, which shortens it more than is ordinarily the case. However,
• 5:30
  just the fact of twenty one passing on the House floor, a bipartisan passage,
• 5:36
  and the number of folks that brought a yes vote for it is tremendous
• 5:42
  progress. I think the tremendous progress is coming for very simple reasons, as
• 5:47
  it does with all situations in DC. When you see movement going quickly and
• 5:55
  happening so fast. Because that's been kind of the statement of me, is
• 5:58
  that what changed? What really changed in DC to cause a lot of this,
• 6:02
  Well, part of what changed was this right here, Coinbase donating twenty
• 6:05
  five million of crypto lobby group fair Shake, now one of the biggest ones
• 6:10
  out there. I'll play something in a second, but this is following Ripple
• 6:13
  and A sixteen Z one of the biggest you know, venture funds out there
• 6:15
  that are investing in this. A couple of points within this latest donation,
• 6:19
  Coinbase brings their total funding to one hundred and sixty million right now. So
• 6:25
  that's a big one because remember they had already allocated like another forty million back
• 6:30
  to back crypto and pro crypto candidates. So already in the cycle, you've
• 6:35
  already seen this much money starting to hit DC. Imagine what's going to happen
• 6:40
  as we start to really accelerate towards the election. This clip goes into a
• 6:44
  little bit more about that, and that's the size of the current crypto lobby.
• 6:48
  Take a look. I think it's really interesting how the crypto community is
• 6:51
  getting organized into basically a lobby to advocate for its interest because they have the
• 6:58
  biggest lobby in America. Did you know that they've been so targeted over the
• 7:01
  last few years because Gensler and Warren have been on a crusade to basically make
• 7:08
  crypto illegal or drive it off shore. Well, every action has an equal
• 7:13
  and opposite reaction, and now that crypto people have basically had a political awakening
• 7:16
  and realized they have to get involved in the political system. This as a
• 7:19
  matter of defense, self defense, you know. Back to the young people
• 7:24
  we talked about in the previous story, I think the reason they're attracted to
• 7:28
  crypto is because it doesn't have government control. And since if you don't trust
• 7:30
  the government and you see the government over and over and over again, covered
• 7:34
  things up or the grift or make decisions that are not in your generation's best
• 7:40
  interest. Why wouldn't you opt out of their financial system? And you know
• 7:43
  what, there's a lot of them and they have they're getting organized to your
• 7:46
  points acts. If young people show up, it'll be it could be five
• 7:49
  hundred basis points. I mean, young people do not show up to vote
• 7:53
  because there isn't a NISI that they care about. Correct, But there's fifty
• 7:56
  million Americans that are in crypto fifty five zero, Okay, So if ten
• 8:00
  percent of them are like, let's say that's their scene, that's not a
• 8:03
  million votes. No, no, no, there's a plausible case where forty
• 8:09
  million of those folks show up because you're talking about a structural part of their
• 8:13
  wealth creation. So they hit on really the potential here in terms of the
• 8:20
  impact on the election side of things. But it also starts to move into
• 8:24
  the investment appetite. And this is where Kathy Wood comes into play, because
• 8:28
  this is where it ties in what's happening within the ETHTF. I'm going to
• 8:31
  go to this story right here, ARC invest out of the ETF race for
• 8:35
  eth ends their partnership with twenty one shares. Now, there's a couple of
• 8:39
  points that you could look at right now and simply say, remember when ARC
• 8:43
  stepped out, part of that was in a response to or we could assume
• 8:48
  that is a response to the fact that staking was removed off of the table
• 8:52
  for putting this within these ETFs. If that is in fact the case,
• 8:56
  and we already have seen very successful staking security products out there, if you
• 9:03
  go back and look at Biddle, go back and check one of our own
• 9:05
  interviews with Biddle right here out of Miami and what they've been doing with Blackrock,
• 9:13
  Could Kathy be kind of queuing up something like that. Are we in
• 9:16
  a position right now where Art could be looking at a whole new structure to
• 9:20
  get into the staking game of all of this, because there's a couple of
• 9:24
  things that are happening that kind of tie this together. One of course,
• 9:28
  is this right here theorym ETFs may have ended the SEC's war and Crypto.
• 9:31
  Now, remember SEC is the one that is very anti staking. The whole
• 9:35
  concept around that, even though we know many of these other security assets,
• 9:39
  when you start to bundle them come together under the SEC for approval, much
• 9:45
  like what we saw Biddle. This, of course, I think also lines
• 9:48
  up very interestingly with where Art could be going down the road with maybe a
• 9:52
  new product. So if you look at the approval of the spot, ETFs
• 9:56
  was the kind of the chef's kiss on what it would be described as a
• 10:00
  banner month for crypto policy, and the move could severely undermine the SEC's ongoing
• 10:05
  crypto crackdown. The reason I say this, if you combine this with the
• 10:07
  political appetite, you combine this with a whole bunch of people owning crypto and
• 10:11
  voting pro crypto and then starting to look at trying to find assets that they
• 10:18
  can invest into. Kathy would could be lining up with the right product at
• 10:22
  the right time, in the right political environment, in the right regulatory environment.
• 10:28
  Everything starts to kind of come together. I want to go further into
• 10:31
  this, and this of course is right here Eric balshunas he was talking about
• 10:35
  twenty one Shares doing the ETHTF solo. Now Ark obviously dropped out document name,
• 10:39
  but there's still remains partners on the Bitcoin in the futures. Remember last
• 10:43
  week we played a clip that Kathy Wood basically said, Hey, we're losing
• 10:48
  money on the bitcoin ETF and we know it. She made some interesting statements
• 10:52
  in that interview that we played, and that was we think there's some other
• 10:56
  options. If that is the case, may this starts to line up.
• 11:01
  And remember if you kind of think about what twenty one shares is looking at
• 11:05
  in terms of other options, which is what is the highest potential candidate for
• 11:11
  that. Look at who is the staking leader in their holdings right now on
• 11:16
  twenty one shares, it would be Salana. So all of this starts to
• 11:18
  play into some very intriguing things that are setting up. Point is there's a
• 11:22
  lot of chess moves playing out right now politically, regulatory and also from an
• 11:28
  investment category because we are now seeing really the twelfth sector being formed right in
• 11:35
  front of our eyes. So a lot happening out there. For sure.
• 11:37
  This is a clip going in to kind of reiterate on this very point.
• 11:41
  This is Bloomberg take a look the importance of a spot ef ets. I'm
• 11:48
  going to push back on that slightly ed and my personal viewers that we're not
• 11:52
  going to get a lot of amound for this product. It's not a good
• 11:54
  product. Bottom line, it's great news for the industry and that it increases
• 11:58
  awareness and bring the institutional funds that cannot invest in anything that is not listed
• 12:03
  on a regulated exchange. But as for is this a good product, it's
• 12:07
  not going to be distributing staking rewards, which means that anyone investing in this
• 12:09
  product is forgoing a four percent yield. For many that's a convenience fee,
• 12:16
  but for professional investors that's a hefty cost to have to justify to your clients.
• 12:22
  All right, And you could say, all right, well, she
• 12:24
  is right. Yes, if you are investing in ETH, you've got a
• 12:26
  lot of different options out there other than going to an ETF where you can
• 12:30
  get staken rewards, where you can go in and just play the open markets.
• 12:33
  Yeah, all of that is quite a bit different than when you're looking
• 12:37
  at something like a bitcoin ETF. So all of this place together you look,
• 12:39
  as I said, we've kind of painted up a scenario here of regulatory
• 12:43
  the political landscape, and the potential here for a new investment category starting to
• 12:48
  play out. Could ARC maybe get a leg up because they've been kind of
• 12:54
  going head to head with Blackrock on the bitcoin ETF and they've lost. Is
• 12:58
  this maybe their open window taking something else out? In terms of an innovative
• 13:03
  product item. We'll see how all this plays out, but of course we'll
• 13:07
  bring more to you guys and cover all of that right here on the channel.
• 13:09
  If you're not in the diamond circle, make sure and get in right
• 13:11
  now. It's a great place to get additional content. Of course, if
• 13:15
  you're not following me on X do that. It's just Appaul Baron. We'll
• 13:18
  catch you next time right here on tech Bath