Latest / Simply Bitcoin / Did BlackRock Use ETFs to Control Bitcoin’s Price?! | Simply Originals

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Did BlackRock Use ETFs to Control Bitcoin’s Price?! | Simply Originals · Simply Bitcoin

0:00
Is Jane St. the reason why Bitcoin isn't AT150K right now?
0:05
There have been massive developments on the Jane St. and
0:08
Bitcoin price manipulation front.
0:11
Guess who taught scam bankster fraud how to trade?
0:16
None other than Jane St. CEO Rob Granieri, and we also
0:22
now know the secret trading technique that they used to run
0:27
the 10 AM Bitcoin manipulation out go that had been pummeling
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Bitcoin for months. This is becoming a massive story
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with massive implications because as we talked about
0:39
yesterday, who is the major market maker for black rocks
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Bitcoin ETF? That's right, it's Jane St. and
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it's no surprise that ETFs are now under major scrutiny.
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The re hypothecaters are getting annihilated and it's insanely
0:56
bullish for Bitcoin. That's right.
0:58
Look at the chart, read em and weep.
1:02
We are back, baby. And Sailor isn't selling.
1:06
He's in the not selling the Bitcoin business.
1:09
And he says the business is about to be a Bowman.
1:12
And he isn't alone. Financial giant TD Cohen just
1:16
said the fundamentals of Bitcoin have never been stronger, $2.5
1:20
trillion. City just made a major Bitcoin
1:23
announcement and Morgan Stanley. Yeah, those they just announced
1:28
plans to offer Bitcoin trading, lending, yield and custody in
1:32
the future. Yeah, I guess you could say
1:34
things are getting pretty serious.
1:37
So serious that according to Kathy Wood, $1.5 million Bitcoin
1:42
is on the table. That's right.
1:44
We got a hell of a show today for William Wallace.
1:53
Now there's a third place you can get credit, and the third
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place is you go to a crypto exchange or an OTC exchange and
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they'll oftentimes give you a loan at 4% or 3% or 5% or 2%.
2:09
I've had people offer me Bitcoin back credit at 1% or 0%.
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What's the catch, Natalie? Right, that's the question.
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There's always the catch is they want me to transfer the Bitcoin
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to them so they can re hypothecate it.
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So if you have $10 million, you either cannot get a loan from a
2:32
legitimate bank or you can get a small loan at a 10% interest
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rate, or you can get a three or 4% loan, but then it gets re
2:43
hypothecated. So your $10 million of Bitcoin
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gets sold once, gets sold twice, gets sold three times.
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You might have, you might actually create 30 or $40
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million worth of selling because the Bitcoin that you posted is
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that you transferred to the shadow bank or the crypto
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exchange rehypothecated it three times.
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OK, So what's holding down the price?
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I think what holds down the price of the asset is the lack
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of a fully formed non re hypothecating credit system,
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right? And there's a limit to how much
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you can re hypothecate certain other assets, right?
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When you post your home as collateral for a mortgage, the
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bank doesn't turn around and sell the house on your street 10
3:34
times. If they did, the price of houses
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on your street would be lower right?
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So I think that the lack of a fully formed banking system
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holds the price back. The existence of rehypothecation
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and the crypto economy damps the Vol.
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It works to both sides right? When When people want to get
3:57
short, they might get short 50X leverage.
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When they want to get long, they make it long 50X leverage.
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So right now we're in that that bear market where you've got the
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rehypothecation holding back the price and I think at some point
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it reverses itself. We'll just have to wait.
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Well, the. Tides are a changing and we know
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their game now. This is what Jane St. was doing
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the same thing, same playbook that got them temporarily banned
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in India and other countries. They actually made over 4
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billion swindling from people in India.
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Well here's how they did it. Have billions of dollars from
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investors. Buy spot Bitcoin at say 68 K.
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Open massive shorts via options or derivatives.
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Sell large amounts of Bitcoin in minutes with algos combined with
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low liquidity or negative news to trigger panic.
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Selling price crashes to 62 K. close shorts for massive profits
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while losing just 5% on spot. Buy spot Bitcoin again at 62 K
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Squeeze the shorts and create FOMO to push price higher.
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Open massive shorts again. Rinse and repeat.
5:13
So is Jane St. the reason we're not at least at 150K right now
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according to Jeff Park? Not exactly.
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This isn't about 1 villain firm like Jane St.
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It's about how the Bitcoin ETF machine actually works.
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Authorized participants, the big Wall Street desks, they can
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short ETF shares and hedge however they want.
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And here's the key, if they hedge with futures instead of
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buying spot Bitcoin, the spot never gets bought.
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So the natural ARB mechanism that should push the price up.
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It doesn't fully fire. It's not illegal, not
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necessarily evidence of some secret cabal meeting, but it's
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structural and could say structural by design.
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Park's bottom line is simple. No authorized participant is
6:03
explicitly suppressing Bitcoin, but the ETF structure can dampen
6:07
price discovery. It may not be that Jane Street
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is holding us back from 150K. It might be that the plumbing
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itself slows the explosion. Paper.
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Bitcoin will always return to its intrinsic value of 0.
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And that is why ETFs are under scrutiny.
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And if you watch yesterday's episode, we break down the
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interesting timeline with Jane St. and the creation of the
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biggest ETF in history. Pretty insane.
6:36
But according to Saylor, we are sitting at the same inflection
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point. It's the iPhone.
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And we have evidence to back that up.
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But first, Michael Saylor. Phone three people start to
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think and myself included, I didn't think the iPhone, the
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original iPhone one or two were that useful.
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There was no App Store, there's no cut and paste.
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They were kind of toys. Around 2009, the iPhone starts
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working, it's iPhone 3. By 2012, they're around the
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iPhone 4, iPhone 5. Everybody agrees it's a cool
7:10
product. Apple stock peaks, then it
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crashes. Between late 2012 and May 2013,
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Apple stock falls 45%, the same 45% Bitcoins fall.
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The Apple PDE goes to 10, the Ford PDE less than 10.
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It's being valued like a tired cash cow.
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You know, utility company like no technology, no future.
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People are down on it. You know how long it takes
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Natalie before Apple recovers to APDE of 30 from 2013 years,
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Seven years in 2020, Apple returns to APD of 30.
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So it's 13 year cycle from 2007 to 2020.
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The greatest company of its error.
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You know at at many times the most valuable company, the most
8:09
successful product, the product that a billion people agree is,
8:13
is something they can't live without.
8:16
Maybe the most successful product in the history of the
8:18
human race. It takes 13 years peak to peak
8:23
to through to peak, seven years to recover.
8:27
And you know what it took for people to give Apple the PD of
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30 again, the endorsement of Carl Icahn and Warren Buffett, 2
8:37
people who probably didn't even use the iPhone that much, if at
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all. You never would have read a
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review from Carl Icahn or Warren Buffett on the iPhone, did you?
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Like, like, are they at the top of your technology, you know,
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advocate list or technology reviewer list?
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So that's an example of how conventional markets evaluate
9:02
innovation. And and here's the irony right
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at the point that I give that speech and you know, I'm saying,
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hey, this is an iPhone 5, There's not a six year old that
9:11
doesn't want this iPhone 5. At the point I give the speech,
9:17
there's general consensus that the iPhone is something you
9:20
can't live without and no one's got a product nearly as good.
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And yet the the conventional markets counter trading it.
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OK, so if you got rich in the past decade, you probably bought
9:33
big tech. You probably bought Apple, you
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probably bought Google. You probably bought Meta.
9:38
Maybe you bought Amazon. Maybe you bought NVIDIA, maybe
9:42
you bought Tesla. There's no way you got rich
9:44
without buying big tech. Big Tech has been the primary
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screaming success. The stocks are up 10X20X30X50X.
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You know who's showing us evidence of an inflection point
9:58
in adoption? None other than Morgan Stanley.
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That's right, Morgan Stanley. They want a seat at the table.
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After years of rolling their eyes at bit corners, after
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calling it a fad, a bubble, magic, Internet money.
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Now all of a sudden it's a strategic allocation.
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They laughed at it. They ignored it.
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They missed it. Now they want to wrap it up,
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slap a custody fee on it, and pretend they believed all along.
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So let's talk about some of the products that are coming up for
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Morgan Stanley. You'd mentioned you're going to
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allow folks on the E*Trade platform to buy and sell crypto,
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spot crypto, which is great. And I think you're doing that
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through a partnership. And then I think later on at
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some point in time in the next year, you're actually going to
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build out a native custody and exchange solution, which I'm
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pretty excited about. You'll potentially be the first
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major bank to offer that. Why did, why is that piece
10:53
important? And, and what are you thinking
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about? Like how does that strategically
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fit in? Yeah, I think.
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I think it it, it's a natural we we really need to build this out
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internally. We can't just primarily rent the
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the technology to do this. People expect Morgan Stanley,
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they trust our brand to be no fail.
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And when you sit in that position, you have a significant
11:15
responsibility to your clients to make sure that you're
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delivering that in any level of technology.
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So I think that's one of the things that we want to do.
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It's a totally different environment to know that you are
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custodying your assets. You have legal custody with
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Morgan Stanley and Morgan Stanley is overseeing those
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assets for you. There's always those that are
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going to want to self custody. That's a natural part of the
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space, especially in the Bitcoin space.
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I think for some of you in the room that may not know my
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background prior to being in the digital asset strategy space, I
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ran our emerging market investing business for the last
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13 years and I've been at the firm for 26.
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So my entire background in emerging markets, as you can
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imagine, the adoption of Bitcoin and cryptocurrency and I think
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we lead 17 of the top 20 markets of adoption around the world.
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This has been a very, very long journey for me being on the
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ground with many of these companies and investors and
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users of of cryptocurrencies early on.
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So, you know, one of the things that we really want to do is
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just make sure is this continues to mainstream and
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institutionalized that we're being able to provide those
12:24
services to clients. That's pretty exciting.
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So you're going to offer the ability to custody and buy and
12:32
sell crypto and Bitcoin specifically and probably some
12:37
other coins. Do you think you'll offer yield
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and lending services? Of course that Bitcoin.
12:42
I absolutely. That's part of the discussion
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and the exploration. It's a natural part of the road
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map to continue to explore. I think we're in very early,
12:56
very early journey on that. Just in terms of the number of
12:58
products that are out in the market.
13:00
I think we've seen even this year little bit surprised at how
13:05
much momentum there is around Defy lending.
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That's definitely a topic that we've seen pop up again and
13:12
again. We see headlines around that in
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20 this year, but a little bit of a different product than what
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you have with with Stretch. Yeah.
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And and and so awesome. So, so crypto custody, exchange
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yield lending, which by the way, I think it's going to be world
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changing when you do that, do you?
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So $8 trillion in assets on platform, I assume part of this
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is a commercial decision because people have crypto assets off
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platforms, yes. Do you have a sense of how much
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that might be? It's a it's a considerable
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number. Yeah.
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So it's a lot. Of current clients.
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Right. And so you would then get that
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onto your platform. So you.
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Can do so. You can either bring that in
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through at a. In that dimension, City also
14:02
hopping on board with a corny mission to quote make Bitcoin
14:07
bankable, whatever the hell that means.
14:09
But let's check it out. So yes, as you move into the
14:12
world of 24/7 assets like Bitcoin, we definitely need 24/7
14:18
U.S. dollar or 24/7 digital money.
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And all our systems and processes are also being
14:26
uplifted into 24/7 support. Like we absolutely need that.
14:31
So in some sense, we are back to the world of City Never sleeps.
14:35
So this is the one big idea to make Bitcoin bankable.
14:40
Later this year, Citi will be launching our infrastructure
14:44
that integrates Bitcoin into traditional finance.
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So we're going to start with core custody and safe keeping
14:52
capabilities, institutional grade, key management and wallet
14:56
infrastructure. So what does it actually mean to
15:01
make Bitcoin bankable? 3 things.
15:05
First, as we said, institutional grade custody and key management
15:10
infrastructure. We also will be bringing Bitcoin
15:12
into the fold of the $30 trillion of traditional assets
15:16
that our clients entrance with us today.
15:18
So it will be the same framework that's applied and now brought
15:21
to Bitcoin. We will be offering our clients
15:24
a single service model across crypto securities and money.
15:31
What this would mean is we will be feeding the Bitcoin positions
15:35
through the same reporting channels and frameworks and tax
15:39
workflows that traditional securities fold into.
15:43
We've heard from our clients like they don't want to handle
15:46
wallets and keys and one time mattresses, so we will take care
15:49
of those problems. Different strokes for different
15:51
folks I guess, but I think everything here is going back to
15:54
what Sailor was saying at the beginning.
15:57
And all these banks and institutions, they want your
16:00
Bitcoin so they can re hypothecate your Bitcoin.
16:03
They aren't concerned with freedom, only paper gains and
16:07
paper promises keeping the Ponzi alive.
16:10
And at the end of the day, they have to offer and buy Bitcoin
16:13
because otherwise they'll lose to the people that do.
16:16
Now what's the key to surviving these vampires seeking to
16:20
rehypothecate your Bitcoin? Well it's simple.
16:23
You take self custody and as Giga Ched just said, you do not
16:28
sell your corn. You know, we've, we've gone
16:31
around the world talking to companies about buying Bitcoin.
16:34
Well, what I've concluded is that Bitcoin for corporations is
16:38
stretch. Like if you go to most companies
16:41
with hundreds of millions of dollars of capital and working
16:45
capital, it's probably easier for them and better for them to
16:48
buy stretch than it is to buy Bitcoin.
16:51
It's very difficult for them to convince the board of directors
16:54
that they should buy a 40 Vol asset that with no cash flows
16:57
that they have to mark to market every quarter because it might
17:00
screw with their P&L. But on the other hand,
17:03
convincing the board of directors that they should
17:06
actually collect two or four times more cash flow and not
17:10
have volatility, that's easier. It's like instead of you taking
17:15
100 million and buying Bitcoin and getting on the roller
17:17
coaster, just give me the 100 million.
17:20
I will accept all the risk. I will accept the roller
17:22
coaster. I'll over collateralize it.
17:25
I will give you the 10 or 11% yield back.
17:28
I'll solve the tax problem and I promise not to sell the Bitcoin.
17:33
And and so we're in the business of not selling Bitcoin.
17:36
We got very good at it. We have a PhD in Hodling, you
17:40
know, and so I figure why don't we just Hodel for the thousands
17:45
of companies instead of try to convince everybody else to do
17:48
what we're doing and convince their shareholders and their
17:51
board of directors. Just since Jane St. got sued 2
17:55
days ago, Bitcoin is up 10%, adding 120 billion to its market
18:00
cap, and the Bitcoin Weekly candle has turned green after 5
18:04
consecutive red candles. And during this whole thing,
18:07
Sailor wasn't the only one feeling more bullish than ever
18:11
following the crash. So is Kathy Wood, and she's
18:15
calling for $1.5 million Bitcoin.
18:18
We're about to bring it home, but before we do, look at our
18:21
likes. Three or four times maybe.
18:23
I pump those numbers up. Those are rookie numbers in this
18:26
racket. Speaking of holding your own
18:27
keys, if you're looking to reclaim your sovereignty, you're
18:30
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18:36
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18:43
cold storage and guide you step by step in setting up your own
18:46
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your calls, tracking every tap? The Bitcoin Way will help you
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Visit thebitcoinway.com and book your free 30 minute consultation
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using that link in the show notes.
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simply. You'll see it's very low,
20:11
especially since 2019 since more traditional investors have
20:17
become have been getting involved with it.
20:20
The correlation is 0.14, so almost no correlation.
20:28
But if you if you zoom out and you look at the longer term
20:32
price chart of Bitcoin, what you'll see is gold often leads
20:38
and certainly in the last two cycles, Bitcoins performance.
20:43
So gold is a leading indicator in, in, in at least the last two
20:48
cycles. We think the other thing going
20:52
on is we're seeing a lot of Ogs selling.
20:57
Those who were very early on, very early adopters of Bitcoin
21:02
are selling now. Why are they selling?
21:04
Well, according to some of them, you know, Bitcoin has lost the
21:09
plot too, too much traditional finances, financial players are
21:15
getting involved. And from our point of view all
21:19
along, and this is in our collaboration with Doctor Arthur
21:24
Laffer, known for the Laffer Curve.
21:26
He has said the more that Bitcoin becomes involved in the
21:32
traditional financial ecosystem, meaning traditional financial
21:37
institutions start adopting it, the the stronger his conviction
21:43
will be that it is indeed the new global monetary system I
21:50
described. So our conviction has actually
21:53
gone up as Bitcoin has gone down 1.
21:57
Thing is certain, the Bitcoin obituaries keep getting more
22:01
expensive. Do with that information what
22:03
you will. If this is the iPhone moment of
22:07
money, then imagine Sailor walking into Shark Tank today.
22:11
Hello Sharks. I'm looking for 1% of $200
22:14
trillion of digital capital backed by digital credit in
22:18
exchange for 0% of my company, MicroStrategy.
22:22
You haven't explained how I make money, which is the most
22:25
important thing because there's no.
22:26
Chance. Of you making money on this,
22:28
first we had Bitcoin, which is digital capital.
22:30
Now we have strategy pioneering digital credit.
22:33
In the future, we're going to have digital money.
22:36
We issue shares of our common stock to pay the dividend of our
22:39
preferred equities. Then we use our different
22:40
preferred equities to pay for the dividends of their other
22:43
preferred equities. Let's.
22:44
Leave all the passion and all the.
22:47
Kumbaya. Kumbaya leave it aside for a
22:49
second. In the end, shark tanks about
22:50
making. Money.
22:52
Isaac Newton would have invented Bitcoin if he could have.
22:54
In fact, he probably did. I'm so frustrated I have no
22:58
idea. I really don't know what your
22:59
business. Is.
22:59
I don't know. What your strategy is?
23:01
I really don't. Know anything?
23:02
I went to MIT, we sold Nike dunks and they're trading for
23:06
like 2 grand on eBay. Why are you here?
23:08
Sure, you can invest in a company like NVIDIA or Microsoft
23:12
or Tesla or Amazon or Apple that's trading at a 20 to 60 X
23:16
price to book. Or you can trade our company at
23:18
a 1.19 M NAV during a Bitcoin bear market you're out of.
23:22
Here, see you buddy. Goodbye.
23:24
Take a. Bro, Jeffrey Epstein said.
23:26
I was autistic to everybody. Who's watching?
23:30
Don't buy it. I'm out and the possibility of
23:33
World War 3 is higher than ever, which is probably a good time to
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simply for 15% off no signal no problem.
24:07
Just in case we couldn't play that skit, we will have a link
24:10
in the show notes Sailor reposted it.
24:13
It's absolutely hilarious. I hope you guys enjoyed this
24:15
one. Let us know what you think down
24:17
below Don't forget to like subscribe and give us a pant by
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sharing the sound money gospel set those notifications for the
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best in Bitcoin news delivered to you daily.
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We got a lot of great stuff coming your way, so stay tuned,
24:28
have a great weekend and I'll catch you all next time.
24:30
Love you guys. If you prefer to go.
24:33
Down with the ship. You.