Latest / The Paul Barron Crypto Show / 2X XRP ETF!🔥$XXRP CEO INTERVIEW🚀Sal Gilbertie | Teucrium

Transcript

2X XRP ETF!🔥$XXRP CEO INTERVIEW🚀Sal Gilbertie | Teucrium · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Welcome back into the show. Today we're going to be
• 0:01
  Speaker 1: talking about something I think you guys will like, and
• 0:03
  Speaker 1: that is an XRP ETF and with an expert that
• 0:07
  Speaker 1: knows a lot about hedging on inflation and what that
• 0:11
  Speaker 1: means for you. My name is Paul Barrow. Welcome back.
• 0:12
  Speaker 1: In kind of go right into it. I want to,
• 0:14
  Speaker 1: of course bring in Sal GILBERTI, who comes in from
• 0:18
  Speaker 1: a fun called Tu Crium. Nice to have you, Sal, Thanks, Paul,
• 0:22
  Speaker 1: nice to be here. Okay, so let's get into it quickly.
• 0:25
  Speaker 1: Of course, you made the cover of Forbes talking about
• 0:27
  Speaker 1: playing the fields. Now, most of your ETF background has
• 0:32
  Speaker 1: been done in things other than digital assets, So talk
• 0:36
  Speaker 1: to me a little about where you guys came from.
• 0:39
  Speaker 1: You've been around for quite a while, obviously in the
• 0:41
  Speaker 1: ETF space. Explain to me more about Tu Cream.
• 0:45
  Speaker 2: Sure, we've been around for quite a while, and I
• 0:47
  Speaker 2: was working at Society a General trading a book around
• 0:52
  Speaker 2: ethanol and ethanol and agricultural products. And I had started
• 0:55
  Speaker 2: at Cargild way back in the day. So you know,
• 0:58
  Speaker 2: I have a strong energy and a culture background. So
• 1:01
  Speaker 2: we launched ETFs that were energy and agriculture based. We
• 1:04
  Speaker 2: were not first in the energy. They were very good ets,
• 1:07
  Speaker 2: but if you're not first, it doesn't really work out.
• 1:09
  Speaker 2: So we closed those funds. We kept the agricultural ets,
• 1:13
  Speaker 2: which remained to this day very successful, and then we
• 1:17
  Speaker 2: got into crypto. We did file for a bitcoin early
• 1:20
  Speaker 2: on a bitcoin futures based. Our expertise is derivatives. That's
• 1:23
  Speaker 2: where we live, and so when they filed for futures,
• 1:26
  Speaker 2: we were very excited. We filed along with a number
• 1:28
  Speaker 2: of other people, but we filed a unique way under
• 1:32
  Speaker 2: thirty three Act, which in those days that's what you
• 1:34
  Speaker 2: had to file. Under Chairman Genzler changed the roles midstream,
• 1:38
  Speaker 2: went to forty Act, and a lot of people beat
• 1:40
  Speaker 2: us to the game, and we decided that wasn't going
• 1:42
  Speaker 2: to happen again. And I'm an XRP guy. I really
• 1:47
  Speaker 2: am a fan of what Ripple's trying to do in
• 1:49
  Speaker 2: the blockchain future of finance, and so when the opportunity
• 1:53
  Speaker 2: came along, given that they announced that they were going
• 1:55
  Speaker 2: to be XRP futures, we filed for a fund that
• 1:59
  Speaker 2: contained the rives, not just futures swaps as well, and
• 2:02
  Speaker 2: when other competitors came in filing for the same thing.
• 2:05
  Speaker 2: We said, well, all right, how can we be First,
• 2:07
  Speaker 2: we have a great ticker, I mean XXRP double exposus, Yeah,
• 2:10
  Speaker 2: double XRP. So to capitalize on that, we started the
• 2:13
  Speaker 2: fund with a swap based out of out of Europe.
• 2:16
  Speaker 2: Actually it was a European ETF in Switzerland. We based
• 2:19
  Speaker 2: the swap on and that we got to jump on everybody.
• 2:21
  Speaker 2: The market clearly wanted it. People want this, you know,
• 2:25
  Speaker 2: the XRP army as they call it. They're very loyal
• 2:29
  Speaker 2: and they're very aggressive, and I think a volatile product
• 2:32
  Speaker 2: like this, as you mentioned, it just had immense investor demand,
• 2:36
  Speaker 2: which we saw immediately.
• 2:37
  Speaker 1: Yeah, and we're seeing more of that. I was looking
• 2:39
  Speaker 1: at your line list of expertise all the way back
• 2:43
  Speaker 1: to two thousand and nine, so you've seen just about
• 2:46
  Speaker 1: every kind of ETF that could be out there, including
• 2:49
  Speaker 1: even white label solution services that which is kind of
• 2:52
  Speaker 1: interesting because I think we're going to see more of
• 2:53
  Speaker 1: that in the digital asset space coming up and within
• 2:58
  Speaker 1: what you're doing. If you look at the two x
• 3:01
  Speaker 1: long daily and especially on XXRP, explain to us a
• 3:04
  Speaker 1: little about this, how it works, how you guys are
• 3:08
  Speaker 1: a little bit different.
• 3:09
  Speaker 2: Sure, and we're you know, we're we're different in that
• 3:12
  Speaker 2: we packaged XRP inside of this. We're the same in
• 3:14
  Speaker 2: that the two X product is not our invention. We
• 3:17
  Speaker 2: just we put XRP inside and two X is. People
• 3:21
  Speaker 2: need to understand they are designed to capture twice the
• 3:25
  Speaker 2: performance of an asset, whatever that asset is, in a
• 3:29
  Speaker 2: single day. So in a single trading day, they capture
• 3:32
  Speaker 2: hopefully two hundred percent or as near to it as
• 3:34
  Speaker 2: you can get after fees and expenses and trading slippage.
• 3:37
  Speaker 2: That's what it does. And so these these things reset
• 3:40
  Speaker 2: every day. In other words, if the price goes up
• 3:43
  Speaker 2: and no new money flows in or out, we have
• 3:45
  Speaker 2: to bind more in order to stay two hundred percent leverage.
• 3:47
  Speaker 2: If the price goes down, we have to sell in
• 3:50
  Speaker 2: order to stay properly two hundred percent levers, not over levers.
• 3:53
  Speaker 2: And so given that you're resetting every day, these products,
• 3:57
  Speaker 2: especially these long only two X products like xxr IS,
• 4:01
  Speaker 2: they go up in an up market, but they go
• 4:03
  Speaker 2: down in the sideways or down market, So you can
• 4:06
  Speaker 2: lose money in two out of three scenarios. People need
• 4:08
  Speaker 2: to be very aware of that.
• 4:09
  Speaker 1: Yeah, And I think, you know, looking at your website
• 4:13
  Speaker 1: here kind of goes through a little bit of the
• 4:15
  Speaker 1: fun facts. If you guys want to learn about that
• 4:17
  Speaker 1: on XXRP, so could the XRP army. And also I
• 4:21
  Speaker 1: think people that are interested in Ripple in general, just
• 4:24
  Speaker 1: looking at what Ripple is doing, what do you feel
• 4:27
  Speaker 1: is the perfect demographic for investing in this?
• 4:31
  Speaker 2: What we see is people all spectrum of ages, I
• 4:35
  Speaker 2: would say, from probably the twenties through their sixties of
• 4:38
  Speaker 2: people that we've met in terms of age and all
• 4:41
  Speaker 2: you know, racist, creed, sex is, they're all in this.
• 4:44
  Speaker 2: I think it's people who have a core understanding of
• 4:48
  Speaker 2: where Ripple is positioning itself, where the token XRP can go,
• 4:52
  Speaker 2: and then they really want to trade aggressively, and that's
• 4:54
  Speaker 2: what this product is for aggressive traders.
• 4:56
  Speaker 1: Well, I think the aggressive side of it too, I
• 4:59
  Speaker 1: think is a big deal. Do you feel like the
• 5:02
  Speaker 1: extra volatility around x xrp's success is actually not a
• 5:08
  Speaker 1: not a bug, but a feature in how the ETF operates.
• 5:11
  Speaker 2: Yeah, absolutely, it's a feature. There's no question as so
• 5:14
  Speaker 2: long as you can stay on top of keeping the position,
• 5:17
  Speaker 2: you know, in line with the with the objective of
• 5:20
  Speaker 2: a two hundred percent a day of performance, you know,
• 5:23
  Speaker 2: give or take all the static around these things. I
• 5:25
  Speaker 2: think it's a benefit. That's that's why they that's why
• 5:28
  Speaker 2: the fund exists for the ument.
• 5:30
  Speaker 1: Yeah, for sure. I was looking at Michael Sailor. He
• 5:32
  Speaker 1: kind of gets into it right there. Volatility a gift
• 5:34
  Speaker 1: to the faithful, which is what we're seeing right now
• 5:37
  Speaker 1: in a lot of digital assets outside bitcoin. XRP obviously
• 5:40
  Speaker 1: is one of them. Now, you crafted something that is
• 5:44
  Speaker 1: called the golden grain circle. Explain to me what that is.
• 5:50
  Speaker 2: Sure, we've learned over the years of running our grain
• 5:53
  Speaker 2: funds that grains have a very specific cycle, and it's
• 5:57
  Speaker 2: it's literally cosmic, so you can only grow things in
• 6:00
  Speaker 2: the summer and there's nothing growing in the winter, and
• 6:03
  Speaker 2: so what happens is grains have a natural cyclicality. And
• 6:08
  Speaker 2: today as we speak, we actually begin the seasonal low
• 6:14
  Speaker 2: of grains, but that's because of harvest approaching. But the
• 6:19
  Speaker 2: golden grains cycles very specific cycle. Grains and all agricultural
• 6:23
  Speaker 2: products are Farmers are subsidized throughout the world, and so
• 6:27
  Speaker 2: in a nutshell, every government in the world subsidizes their farmers,
• 6:30
  Speaker 2: which means on the big commodities like corn, SOI means
• 6:34
  Speaker 2: whatever it is. Farmers get used to operating at break
• 6:37
  Speaker 2: even because governments want to subsidize their farmers so that
• 6:40
  Speaker 2: they will produce even when they're not making money. They're
• 6:44
  Speaker 2: just breaking even. And luckily, you know, the farmer's psychology
• 6:47
  Speaker 2: is I'm a farmer. I get out there, I scratch dirt,
• 6:49
  Speaker 2: I plant, That's what I do. And so with the subsidies,
• 6:53
  Speaker 2: the natural price range of an agricultural commodity is actually
• 6:57
  Speaker 2: break even. And corn's got a really good one. I
• 6:59
  Speaker 2: saw you had the picture up there. The last seventeen
• 7:02
  Speaker 2: or eighteen years, since the Renewable Fuels Act, which reset prices,
• 7:06
  Speaker 2: corn is traded at a break even a future's equivalent
• 7:08
  Speaker 2: break even price. And this is a picture of the
• 7:11
  Speaker 2: spot continuation future. So the front month futures, when corn
• 7:14
  Speaker 2: futures are between three dollars and fifty cents and four
• 7:17
  Speaker 2: dollars a bushel, they kind of trade sideways until there's
• 7:19
  Speaker 2: a drought or a war, and then they literally double.
• 7:22
  Speaker 2: That has happened three times in the last seventeen years.
• 7:25
  Speaker 2: So if you know there's an asset that doubles from
• 7:27
  Speaker 2: the same price and then goes back to that price
• 7:30
  Speaker 2: over time. That's you know, you probably want to allocate
• 7:33
  Speaker 2: a little something of that when it goes back to
• 7:34
  Speaker 2: the price. And that's the golden grain cycle. So stage
• 7:37
  Speaker 2: one is when you're trading at break even, which is
• 7:39
  Speaker 2: where we've just hit. We've come back to break even.
• 7:42
  Speaker 2: Stage two is when you're you're shooting higher. The price
• 7:44
  Speaker 2: is shooting higher because remember, nobody skips their bagel when
• 7:48
  Speaker 2: there's a drought in Kansas. They don't care if the
• 7:50
  Speaker 2: wheat grows are now, They're still going to eat their bagel.
• 7:52
  Speaker 2: And so that causes the demand for grains to go higher.
• 7:55
  Speaker 2: And of course corn is used in everything from food
• 7:58
  Speaker 2: to fuel to just every I think. So corn's a
• 8:01
  Speaker 2: big one. And so we've been we've been several years
• 8:05
  Speaker 2: of coming back down off the post war highs of
• 8:08
  Speaker 2: all grains that grains set when Russia invaded, and so
• 8:11
  Speaker 2: we're back at that break even level. It is time
• 8:14
  Speaker 2: for strategic allocators to take a hard look at this
• 8:17
  Speaker 2: and realize you may have to wait. You've had to
• 8:19
  Speaker 2: wait for between two and six years over the last
• 8:22
  Speaker 2: seventeen but history has shown you that again it's corn
• 8:27
  Speaker 2: has doubled three times from the price where it is
• 8:29
  Speaker 2: right now in the last seventeen years, so it's back there.
• 8:31
  Speaker 2: How long you have to wait, we don't know. But
• 8:33
  Speaker 2: for allocators it's it's just an obvious thing to have
• 8:36
  Speaker 2: a look at.
• 8:37
  Speaker 1: Is there any cycle that is lining up for the
• 8:40
  Speaker 1: digital asset side of things where you can see maybe
• 8:43
  Speaker 1: an XRP cycle starting to play into this. Most of
• 8:46
  Speaker 1: these have been accommodating most of the digital assets side,
• 8:50
  Speaker 1: whether you think or believe in the four year cycle
• 8:53
  Speaker 1: where Bitcoin and most of the major you know, top
• 8:56
  Speaker 1: twenty tokens kind of react anything that you've noticed so far, I.
• 9:01
  Speaker 2: Tell you what, we haven't seen anything as defined as
• 9:04
  Speaker 2: the grain cycles and the corn cycle. That said, the
• 9:06
  Speaker 2: four year cycle has some valut that validity, and the
• 9:11
  Speaker 2: you know, the weekend there's there's a cyclicality to weekend
• 9:15
  Speaker 2: trading that people have noticed on different coins, and that's
• 9:18
  Speaker 2: that's something that you know, pay attention to for short
• 9:20
  Speaker 2: term trader for sure.
• 9:22
  Speaker 1: Listen, we're watching crypto treasury companies just starting to populate
• 9:26
  Speaker 1: the land. If you look at the aggregate market cap
• 9:29
  Speaker 1: right now, XRP starting to lead the way. Of course,
• 9:31
  Speaker 1: we've seen Salona and even Ethereum to a certain extent.
• 9:35
  Speaker 1: When you compare the treasury companies, which are basically going
• 9:39
  Speaker 1: out buying an asset, maybe they're doing some other functions
• 9:41
  Speaker 1: that's driving some revenue into the company versus an ETF
• 9:46
  Speaker 1: ETF a little bit safer in most cases, a lot
• 9:49
  Speaker 1: easier to understand. Which is this a comparison of how
• 9:53
  Speaker 1: investors or do you think they're just going to diversify
• 9:55
  Speaker 1: and maybe go in both.
• 9:58
  Speaker 2: I'm thinking both, because I'm not sure one is safer
• 10:00
  Speaker 2: than the other. I do think, you know, we've seen
• 10:02
  Speaker 2: with micro strategy the premium built in to companies that
• 10:05
  Speaker 2: do this. Now, how long that premium is going to
• 10:07
  Speaker 2: stay there? Who knows. They are already hedge funds trying
• 10:09
  Speaker 2: to arm that away, and it may or may not
• 10:11
  Speaker 2: get out of the way. So I think that for
• 10:14
  Speaker 2: sophisticated traders with a lot of capital to allocate, they're
• 10:17
  Speaker 2: likely to use both.
• 10:18
  Speaker 1: Why not interesting? Do you think we're going to see
• 10:21
  Speaker 1: some more acquisition? I mean there has been some signals
• 10:23
  Speaker 1: here that we could see. Thumbs up now which is
• 10:27
  Speaker 1: involved with the Trumps, you know, investing into XRP potentially
• 10:32
  Speaker 1: as a buy that might mean a possible you know
• 10:36
  Speaker 1: play here. Do you think we're going to see more
• 10:39
  Speaker 1: of this in terms of the Treasury strategy overall, especially
• 10:43
  Speaker 1: around the XRP ecosystem. Do you think that's going to
• 10:46
  Speaker 1: continue to go.
• 10:47
  Speaker 2: I do think it's going to continue to go. I
• 10:49
  Speaker 2: think I think Bitcoin leads it obviously, and I think
• 10:52
  Speaker 2: XRP has a lot to go because people the xrp's
• 10:55
  Speaker 2: got the use case. So as the use case builds out,
• 10:57
  Speaker 2: as Ripple builds out their use case, think that more
• 11:00
  Speaker 2: and more people will see the appeal to x RP.
• 11:03
  Speaker 2: And you know, Bitcoin is a pretty clean story. It's
• 11:06
  Speaker 2: a store of wealth, that's what it is. It's digital gold, literally.
• 11:09
  Speaker 2: And I think that that crypto in general is a
• 11:13
  Speaker 2: boon to fiat currency. You know, people say it's going
• 11:15
  Speaker 2: to replace fiac councy currency. Crypto is the greatest thing
• 11:19
  Speaker 2: to happen to fiat currency in decades, maybe ever, because
• 11:22
  Speaker 2: everybody has to convert their crypto eventually into a fiat
• 11:26
  Speaker 2: currency of some sort or another, because we're not in
• 11:29
  Speaker 2: a crypto ecosystem, we're in a fiat currency ecosystem. Crypto
• 11:32
  Speaker 2: just allows you to get more of that currency. So
• 11:34
  Speaker 2: I think that as people look at I mean the
• 11:37
  Speaker 2: number of people who said to me, I have cash
• 11:40
  Speaker 2: in t bills or money market from a personal level
• 11:42
  Speaker 2: or a treasury level, who say, why wouldn't I put
• 11:45
  Speaker 2: some in crypto? Given what's happened in the past, given
• 11:48
  Speaker 2: what the potential is, why wouldn't I allocate at least
• 11:50
  Speaker 2: some of that to crypto. It's foolish not to. And
• 11:53
  Speaker 2: that that attitude is growing, that's that's not something that's
• 11:56
  Speaker 2: that's going away. In fact, it's I think it's nascent.
• 11:59
  Speaker 2: I think it's just beginning. And so yeah, I think
• 12:01
  Speaker 2: there's a big future here.
• 12:02
  Speaker 1: For well, you've been you guys have been around for
• 12:05
  Speaker 1: a long time, so you've seen these market cycles EBB
• 12:07
  Speaker 1: and flow, and now we're in one where digital assets
• 12:10
  Speaker 1: are now finally kind of growing up and making their
• 12:14
  Speaker 1: way to Wall Street and their trek to Washington and
• 12:17
  Speaker 1: all that. You say, it's a nascent market, How big
• 12:20
  Speaker 1: could this be?
• 12:21
  Speaker 2: I think that crypto can be bigger than anyone imagines.
• 12:24
  Speaker 2: Because the people who focus on cap table and say
• 12:27
  Speaker 2: there's not enough money to make these cap tables that big,
• 12:29
  Speaker 2: that's not true because it's got nothing to do with
• 12:32
  Speaker 2: the amount of money. I mean, it does have to
• 12:33
  Speaker 2: do with the amount of money, but not all of
• 12:36
  Speaker 2: the crypto is going to be out there trading. So
• 12:38
  Speaker 2: the cap table, you know, it's like it's like an
• 12:40
  Speaker 2: AI company being worth you know, half a trillion dollars.
• 12:44
  Speaker 2: It's because there are only a limited number of shares
• 12:46
  Speaker 2: that actually trade on it, and so that's how it's
• 12:48
  Speaker 2: going to work with crypto. People are going to buy
• 12:50
  Speaker 2: it and hold and store it. You know, what's Ripple
• 12:53
  Speaker 2: going to do with it? Forty billion XRP. Given that
• 12:56
  Speaker 2: they filed to be a bank, you know, there's one
• 12:59
  Speaker 2: of the leading theories that they just hold that on
• 13:01
  Speaker 2: their balance sheet, they get their banking license and they
• 13:03
  Speaker 2: become a top twenty capitalized bank in the world. That's
• 13:06
  Speaker 2: with XRP three dollars. XRP goes you know, some multiple
• 13:10
  Speaker 2: of three dollars, they become a top ten bank or
• 13:12
  Speaker 2: even the top bank in terms of capitalization. That's pretty astounding.
• 13:16
  Speaker 1: That would be insanely astounding, and I think a lot
• 13:19
  Speaker 1: of people are sleeping on that idea. If you look
• 13:21
  Speaker 1: at leverage ETFs, do you feel like they'll ever be
• 13:24
  Speaker 1: on chain to where we'd be able to trade these
• 13:27
  Speaker 1: on chain.
• 13:28
  Speaker 2: I think everything will be on chain. I don't think
• 13:29
  Speaker 2: there's anything that won't eventually be on chain. There's no question.
• 13:33
  Speaker 1: Does this remove the need for a leveraged ETF in
• 13:37
  Speaker 1: the future.
• 13:39
  Speaker 2: No, because I think that I don't even understand on
• 13:42
  Speaker 2: chain leverage trading as well as I should, And you
• 13:45
  Speaker 2: don't need to understand the leverage in an ETF in
• 13:48
  Speaker 2: order to actually trade it. Now you should, and you
• 13:51
  Speaker 2: should read the perspectives and know the risk, but come on,
• 13:54
  Speaker 2: it's the ease of access through ETFs is really understandable
• 13:59
  Speaker 2: by everybody with a stock account, whereas on chain leverage
• 14:03
  Speaker 2: is kind of complicated.
• 14:04
  Speaker 1: Well, you're exactly right, that's the point I'm getting on.
• 14:07
  Speaker 1: And this is kind of plugging the two questions together.
• 14:09
  Speaker 1: As you've got adoption curves occurring right now, the easy
• 14:14
  Speaker 1: access is going to be ETFs because it's the thing
• 14:16
  Speaker 1: that most of traditional finance understands. And then maybe next
• 14:21
  Speaker 1: layer up, maybe a treasury play where they're like, oh,
• 14:24
  Speaker 1: they're buying the assets, so it makes asset go up.
• 14:27
  Speaker 1: I'm going to buy that stock. So you're seeing a
• 14:29
  Speaker 1: lot of those plays whether it's b M and R
• 14:31
  Speaker 1: with what Tom Lee's doing or Joseph lubanov x are
• 14:35
  Speaker 1: sharpening gaming. That's an interesting component though, because your point
• 14:39
  Speaker 1: is is that we're going to see a mad rush
• 14:41
  Speaker 1: potentially of traditional finance, and ETFs could be the bullseye
• 14:45
  Speaker 1: where they come first. Do you think that is the case.
• 14:49
  Speaker 2: I do think that that's the case. I think ETFs
• 14:52
  Speaker 2: and bulls. I also think that the appeal to some
• 14:54
  Speaker 2: of these treasury companies, and a lot of people aren't
• 14:56
  Speaker 2: aware this is getting in the weeds. But the wire
• 14:58
  Speaker 2: houses so you can access almost any stock and any
• 15:01
  Speaker 2: leverage product in a in a in like your you're
• 15:05
  Speaker 2: electronic your e broker's account. Okay, but if you go
• 15:08
  Speaker 2: to Merrill, Lynch or UBS or Wells Fargo, most of
• 15:12
  Speaker 2: even the the ETFs that are not leveraged, that are
• 15:16
  Speaker 2: holding the physical crypto, they are not authorizing those platforms
• 15:20
  Speaker 2: in any manner other than what's called unsolicited, meaning you
• 15:23
  Speaker 2: have to call your broker and ask them to make
• 15:26
  Speaker 2: the trade. Your broker cannot call you and recommend it,
• 15:29
  Speaker 2: nor can your broker who has authority over over your
• 15:31
  Speaker 2: account just put your money in there. So there there's
• 15:35
  Speaker 2: I think there are trillions of dollars to which that
• 15:37
  Speaker 2: don't have easy access right now, even to the ETFs.
• 15:40
  Speaker 2: But those advisors can recommend a stock to buy, whereas
• 15:44
  Speaker 2: there won't let them recommend, you know, an ETF to
• 15:47
  Speaker 2: let them recommend stock. So there's a lot going on
• 15:49
  Speaker 2: out here and a lot of pent up money that
• 15:51
  Speaker 2: is not placed in Michael Saylor has a point, there's
• 15:54
  Speaker 2: an ton of money that isn't even close to in
• 15:57
  Speaker 2: these markets yet.
• 15:58
  Speaker 1: Yeah, it is uh is mind boggling if you look
• 16:00
  Speaker 1: at that. I want to get a few predictions from you.
• 16:03
  Speaker 1: If you look at a normal XRP e TF, when
• 16:07
  Speaker 1: do you think that would be approved right now? Everybody's
• 16:09
  Speaker 1: kind of targeting September. Do you think it'll happen this year?
• 16:12
  Speaker 2: I think it'll happen this year. Yeah, I don't know
• 16:14
  Speaker 2: about September, but I would be surprised if they push
• 16:16
  Speaker 2: it to twenty twenty six.
• 16:18
  Speaker 1: What about in comparison between a normal XRP ETF and
• 16:23
  Speaker 1: what you're doing with XXRP is just a normal XRP
• 16:28
  Speaker 1: ETF going to be too boring for for people that
• 16:31
  Speaker 1: might want to go this route versus what you're doing.
• 16:34
  Speaker 2: It might be I think for anybody who wants a
• 16:36
  Speaker 2: long term allocation, they're going to go into the normal
• 16:38
  Speaker 2: ETF they should you know, these these levertytfs are short
• 16:41
  Speaker 2: term play. So anybody who wants to get some juice
• 16:44
  Speaker 2: or have some fun, they the levertytfs are probably going
• 16:46
  Speaker 2: to have an appeal to them, and they've got to
• 16:49
  Speaker 2: be careful because they're very risky products. But if you're
• 16:51
  Speaker 2: a if you're going to buy and hold, which people
• 16:54
  Speaker 2: are going to allocate to these things and just hope
• 16:56
  Speaker 2: you should not be using LeVert product, Just use a
• 16:58
  Speaker 2: regular product.
• 16:59
  Speaker 1: Hey, listen, Comodities are the way that people make ridiculous
• 17:03
  Speaker 1: amounts of money in a very short period of time.
• 17:04
  Speaker 1: Because you're exactly right, and of course you guys leading
• 17:07
  Speaker 1: the way in terms of commodity trading out there on
• 17:09
  Speaker 1: the ETF side, so expertise, kudos to you. Biggest XRP
• 17:14
  Speaker 1: catalyst that you think will happen, I mean the banking
• 17:17
  Speaker 1: license one sure for Ripple obviously we've already seen quite
• 17:21
  Speaker 1: a few, but there's also involvement and potentially a swift
• 17:25
  Speaker 1: movement in terms of cross border payments. What would be
• 17:29
  Speaker 1: your catalyst that you think would move the market.
• 17:32
  Speaker 2: I think those are both catalysts. I think that the
• 17:36
  Speaker 2: you know, it's hard to say, if they get approved
• 17:37
  Speaker 2: as a bank and then announce they're not going to
• 17:39
  Speaker 2: sell any more XRP onto the market because they want
• 17:43
  Speaker 2: to capitalize the bank, I think that would be an
• 17:45
  Speaker 2: enormous price, that's gigantic. But then I think as Swift
• 17:50
  Speaker 2: breaks down and you know ISO two hundred and twenty two,
• 17:54
  Speaker 2: I think that they're not they're not projecting Swift to
• 17:57
  Speaker 2: use it for a few years yet to be totally
• 17:59
  Speaker 2: complied with that. Whereas I think that when Ripple flips,
• 18:04
  Speaker 2: all the switches and all these nbas they talk about
• 18:06
  Speaker 2: come alive, and when you start seeing banks announced, you know,
• 18:09
  Speaker 2: we did this much on the blockchain Ledger in terms
• 18:13
  Speaker 2: of moving your money, and we did this much on Swift,
• 18:15
  Speaker 2: and the Swift is going down, a blockchain's going up.
• 18:17
  Speaker 2: I think that's a big deal. And there's another point
• 18:20
  Speaker 2: to be made here for the economy as a whole.
• 18:22
  Speaker 2: Most people don't understand that banks have to keep capital
• 18:25
  Speaker 2: in both places. If you want to send money from
• 18:27
  Speaker 2: Miami to Tokyo, Okay, banks have to have money in
• 18:30
  Speaker 2: Tokyo and money in Miami under the current system, that
• 18:33
  Speaker 2: all goes away. All that capital is going to be
• 18:35
  Speaker 2: freed up with the blockchain. That's going to burnish the
• 18:38
  Speaker 2: bank's balance sheets even more. But more so, they're going
• 18:41
  Speaker 2: to be able to loan money, They're going to be
• 18:43
  Speaker 2: able to finance their trading desks. It's going to open
• 18:46
  Speaker 2: up so much capital to economic growth in general around
• 18:50
  Speaker 2: the globe. It's a wonderful thing that the blockchain is
• 18:54
  Speaker 2: literally going to open up value because it's going to
• 18:56
  Speaker 2: unlock a lot of frozen money on the bank's balance sheets,
• 18:58
  Speaker 2: and that's really important. Nobody seems to be talking about that.
• 19:01
  Speaker 1: Well, we'll get to that in a second, because there's
• 19:03
  Speaker 1: a kind of a bit of a bombshell report that's
• 19:06
  Speaker 1: coming out of DC with Eleanor Tarrett reporting on it.
• 19:08
  Speaker 1: But before I do that, XRP price by end of year,
• 19:13
  Speaker 1: do you have a prediction?
• 19:14
  Speaker 2: No, we're now in the price of prediction business. We'll see,
• 19:18
  Speaker 2: we'll see what.
• 19:19
  Speaker 1: All right, All right, so let me show you something here.
• 19:21
  Speaker 1: There's a lot of uncertainty coming out of the Genius Act,
• 19:25
  Speaker 1: and of course many of the issues are stemming from
• 19:28
  Speaker 1: the banking ecosystem.
• 19:30
  Speaker 2: A couple of.
• 19:30
  Speaker 1: Points I want to highlight right now, we're currently witnessing
• 19:33
  Speaker 1: potentially an exodus of digital assets. This is all starting
• 19:38
  Speaker 1: in terms of how the OEC is dealing with but
• 19:40
  Speaker 1: more importantly, it's basically they're concerned. And I think the
• 19:43
  Speaker 1: number right now was six trillion. Further on in the article, Yeah,
• 19:47
  Speaker 1: right here, stable coins could drive up to six point
• 19:50
  Speaker 1: six trillion in bank deposit outflows if they're allowed to
• 19:54
  Speaker 1: offer interest or yield. So it appears that the banking
• 19:57
  Speaker 1: industry is panicking right now. How do you make what
• 20:04
  Speaker 1: Ripple would do different than what a JP Morgan Chase
• 20:08
  Speaker 1: would do because they're going at the same industry right now?
• 20:12
  Speaker 2: Right Well, they'll both need a staple going and Rippl
• 20:15
  Speaker 2: has one. Okay, And you know, there are a couple
• 20:18
  Speaker 2: of entrepreneurs out there who said, look at it's stable coins,
• 20:21
  Speaker 2: the best business they've ever seen. People give you their
• 20:23
  Speaker 2: money you invested in treasuries and keep the interest. You know,
• 20:26
  Speaker 2: it's free money. So until that dynamic changes, I don't
• 20:31
  Speaker 2: think the banks have to worry about that. I think
• 20:34
  Speaker 2: for people to attract money to their stable coin, they
• 20:37
  Speaker 2: might do that but let's face it, stable coins have
• 20:39
  Speaker 2: a use case, and and you know they're a business case.
• 20:44
  Speaker 2: People need them for certain things, and so I think
• 20:46
  Speaker 2: that the people issuing the stable coins are going to
• 20:48
  Speaker 2: hold onto that interest as long as they can. The
• 20:50
  Speaker 2: only market force that's going to allow them to have
• 20:53
  Speaker 2: to pay out interest is when the banks use their
• 20:55
  Speaker 2: own stable stop using somebody else as an issue their own.
• 20:58
  Speaker 2: Then you know, just like it's a war of the
• 21:01
  Speaker 2: money market, so it'll be a war of the stable
• 21:02
  Speaker 2: coin exactly. Yeah.
• 21:03
  Speaker 1: Well, I'm concerned that those would not necessarily be as
• 21:07
  Speaker 1: interesting because obviously the ability on an open stable coin protocol,
• 21:11
  Speaker 1: that the capacity of being able to use it elsewhere
• 21:13
  Speaker 1: is a significant advantage. If you look at the economic
• 21:17
  Speaker 1: safety ratings right now on stable coin, Ripple leading the
• 21:20
  Speaker 1: way right there. Of course you got even GUSD packs
• 21:24
  Speaker 1: gold all that. What about two prim holding r l USD.
• 21:29
  Speaker 2: There's no question that if we had use for a
• 21:32
  Speaker 2: stable coin, we would use our l us D, there
• 21:34
  Speaker 2: is no question. And we are a Hid and Road client.
• 21:37
  Speaker 2: So I am assuming that that at some point they're
• 21:39
  Speaker 2: going to ramp up the use of the blockchain or
• 21:41
  Speaker 2: we're going to have very fast settlements in our products
• 21:44
  Speaker 2: and our daily dealings, and will of course have somewhere
• 21:47
  Speaker 2: l us D there's no dabt. Yeah, no doubt. I
• 21:49
  Speaker 2: like it.
• 21:49
  Speaker 1: Hey, listen, Sala, it's good to always kind of dive
• 21:52
  Speaker 1: a little deeper on what's going on in the ecosystem.
• 21:54
  Speaker 1: It's getting to be exciting times right now, I think
• 21:56
  Speaker 1: for the front the fintech community as well as the
• 21:58
  Speaker 1: new financial way that seems to be sweeping through Wall
• 22:02
  Speaker 1: Street right now. So thanks so much for coming in.
• 22:04
  Speaker 1: We'll definitely have you back on the show as things develop.
• 22:07
  Speaker 2: Thanks Paul, it's a pleasure, you bet.
• 22:09
  Speaker 1: All right, you guys. If you're not in our Diamond Circle,
• 22:12
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• 22:16
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• 22:19
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• 22:22
  Speaker 1: at Paul Baron. We'll catch you next time right here
• 22:24
  Speaker 1: on The Paul Baron Show.