Latest / Simply Bitcoin / EXPOSED: Is Coinbase SUPPRESSING Bitcoins price?! | EP 1471

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EXPOSED: Is Coinbase SUPPRESSING Bitcoins price?! | EP 1471 · Simply Bitcoin

0:02
We might have found Coinbase's dirty secret that explained why
0:07
the Bitcoin price has been very lackluster.
0:11
GameStop just quietly filed an SEC disclosure this week and
0:15
inside it was leaked that they gave Coinbase permission to
0:20
rehypothecate their entire stack.
0:23
That's right, they are using their $350 million of Bitcoin to
0:28
engage in paper Bitcoin games. And let's not forget Coinbase is
0:33
currently engaged in a war with Wall Street and the White House
0:38
over the Clarity Act. And they also basically
0:43
supposedly custody every ETF and Bitcoin treasury company in the
0:47
entire industry. What does this mean for the 21
0:51
million hard cap? I know you guys are saying in
0:54
the chat, I thought it was Binance that was suppressing
0:57
bitcoin's price. Maybe it's all of them
1:00
suppressing Bitcoin's price at this point, but I'm not making
1:04
this up. All right, guys, this was an SEC
1:06
filing, so let me get to it. Let me get to the big news.
1:11
Here we are. So Decrypt covered this and
1:15
here's their headline. Why GameStop put 315,000,000.
1:19
Sorry, 315,000,000. I said 350 in Bitcoin into a
1:23
covered call option strategy. GameStop has pledged nearly all
1:28
of its Bitcoin to a covered call strategy on Coinbase prime to
1:32
generate some yield. The infamous I need yield on my
1:37
Bitcoin is coming back guys. So here we go.
1:39
GameStop pledge 4709 Bitcoin to a covered call strategy on
1:44
Coinbase Prime, giving the exchange the right to re
1:47
hypothecate or sell the coins. The move reclassifieds the
1:51
holdings from an intangible asset to a receivable, changing
1:55
how gains and losses flow through earnings.
1:58
CEO Ryan Cohen has declined to rule out selling Gamestop's
2:01
Bitcoin, calling the companies other opportunities quote way
2:05
more compelling. I couldn't make this up if I
2:08
tried guys Like I have the SE filing and I command FD it and
2:18
it it literally says, hey, we're going to give Coinbase the right
2:22
to rehypothecate our Bitcoin. Have we not been talking about
2:27
this for a long time? We've been joking on the show
2:30
that there might be more than 21 million Bitcoin, at least, you
2:33
know, on paper. And now we without a doubt know
2:37
that this Opti making stuff up and, and we know for without a
2:43
doubt that they're giving legal disclaimers that this is
2:47
possible. So the reclassification matters
2:53
because it'll change how Bitcoin gains and losses flow through
2:56
Gamestop's quarterly earnings. Bitcoin treasury companies have
2:59
been relatively quiet since the start of the year.
3:01
Of course, the prices dropped. The heightened volatility has
3:03
put companies with Bitcoin on their balance sheet under
3:05
strain. Originally, they spent more than
3:08
$500 million buying its Bitcoin last May.
3:12
And of course, they saw a decline, but they noted in the
3:15
in its report that the terms of the collateral agreement mean
3:18
that Coinbase Prime has the right to rehypothecate,
3:22
commingle, or unilaterally sell the retailer's Bitcoin.
3:25
That means GameStop didn't sell its Bitcoin, but it could be
3:29
sold. So, you know, in layman terms,
3:34
GameStop still owns that Bitcoin, but as far as the legal
3:39
disclaimer goes, Coinbase could also sell the Bitcoin that
3:43
GameStop actually owns, AKA more paper Bitcoin than actual
3:49
Bitcoin on the blockchain. More than 21 million Bitcoin
3:52
quote UN quote. Although the classification of
3:56
these assets has changed, our economic exposure is consistent
3:59
with direct ownership of the underlying Bitcoin.
4:02
At least that's what the 10 KSE C report, you know, annual SEC
4:06
report says. And a covered call strategy.
4:09
An investor who holds an asset, in this case Bitcoin, sells a
4:12
call option to a counterparty. The option gives a counterparty
4:15
the right to buy the asset at a predetermined price, called the
4:18
strike pipe strike price within a set time frame.
4:22
In exchange, the holder receives a premium upfront, generating
4:24
income on an asset that would otherwise just sit on the
4:27
balance sheet. Are you guys hearing this?
4:30
Am am I make? Yeah.
4:31
What could go wrong exactly? What could go wrong?
4:36
Are you hearing what I'm hearing?
4:41
It sounds like Coinbase again, and the only reason we're really
4:45
talking about this, and I think This is why it is a new story,
4:49
is because Coinbase is basically the main custody for every
4:53
Bitcoin treasury and ETF. If they're doing this with
4:56
GameStop, what are the implications for them doing it
4:59
to every other company that custodies with Coinbase?
5:04
That's like the big question. And further, we know that the
5:09
Clarity Act, whether you like it or not, we know that Coinbase is
5:13
the main obstacle for this to happen.
5:16
Again, whether it's good or not for the industry, we know
5:20
they're fighting this. They did last week come out and
5:24
say, hey, we, we are fighting for de minimis tax exemption.
5:30
And now with the GameStop SEC filing, we also kind of know
5:34
that either they want to, they are or at the very least they
5:40
have legal permission to rehypothecate some Bitcoin that
5:44
is being custody with them. This is just the first time
5:48
we've heard this. Does that mean there's more than
5:52
21 million Bitcoin at this point?
5:54
I know we've been joking about on the show.
5:55
Yeah, there's probably 42,000,000 Bitcoin.
5:57
That's why the price of Bitcoin is half of what it was.
6:03
I don't know, guys. What's what's.
6:06
Yeah, Coinbase is not a friend. I think that sums it up.
6:08
OK. But look, you're probably like,
6:10
OK, Opti's making this up. Here is the sec.gov filing.
6:16
And you can see here I command F rehypothecate.
6:20
So you'd see that this is in the SEC filing.
6:25
The credit risk exposure generally consists of the mark
6:28
to market value constituting unrealized gains under such
6:31
transactions. To mitigate against the risk of
6:33
this exposure, these agreements typically include a feature
6:36
requiring the party that is out of the money, whether the
6:40
company or the derivative counterparty, to pledge
6:42
collateral for all or some portion of the MTM mark to
6:49
market of outstanding derivatives.
6:50
In certain circumstances, certain circumstances, the
6:53
pledge collateral may be contractually permitted to be
6:57
rehypothecated, re pledged, used and or commingled to the
7:01
counterparty. The ability to commingle or
7:03
rehypothecate may obscure legal title to the underlying
7:10
collateral, particularly in the case of pledge digital assets.
7:14
Oh, sorry, I didn't pull it up. Now we are being scammed like
7:19
the gold ETF did. For reals.
7:22
I, I do want to bring up, and I didn't bring up the tweet the,
7:24
the tweet, the tweet. Do you remember a couple of
7:27
months ago that we saw Michael Saylor and Caitlin Long both say
7:37
there might be some rehypothecation in the system?
7:41
We've been talking about paper Bitcoin for a while now and as
7:47
time progresses, we we're starting to find out that there
7:50
really is a lot more quote paper Bitcoin or rehypothecation than
7:56
we imagine, which is one of the things that we've always talked
8:03
about here on the show. It's like, yes, we cheered on
8:06
institutions coming into Bitcoin.
8:08
We cheered on Wall Street embracing Bitcoin.
8:11
And I'm guilty of it. I know I'm guilty of it, but I
8:15
don't think we fully understood what the implications are, and
8:21
now we're starting to see what is happening.
8:25
It really does have a parallel with the gold ETF.
8:30
There's more paper gold than the underlying physical commodity.
8:35
Now, of course, Bitcoin isn't physical, but it seems like
8:38
there's more paper Bitcoin than the digital commodity.
8:44
And remember, we were talking about this all last year.
8:46
Paper Bitcoin summer. Well, it seems like it's eternal
8:49
paper Bitcoin summer. It seems like we're going to see
8:56
a lot more paper Bitcoin being created.
8:59
The more that institutions come in, the more that the Wall
9:04
Street, quote UN quote, elites want to get into Bitcoin.
9:07
We're going to see more claims on Bitcoin than the 21 million.
9:12
We've been joking about this on the show for a while, that one
9:15
day we're all going to wake up and realize, wait, the amount of
9:19
paper Bitcoin, the amount of Bitcoin supposedly in people's
9:23
treasuries is going to add up to more than 21 million.
9:27
Does this mean that Bitcoin isn't hard capped at 21 million?
9:31
No, not at all. We're just going to find out one
9:35
day that there's going to be a huge bank run on Bitcoin and all
9:38
the people that thought they own Bitcoin are going to want to own
9:42
real Bitcoin. Is that day coming soon?
9:46
Probably not. I think these games will
9:48
continue for a while until people realize that we're
9:52
building another. I don't want to say Ponzi, but
9:55
pyramid scheme, another Fiat system on top of Bitcoin where
10:01
everyone thinks they own Bitcoin, but really they don't
10:04
own Bitcoin. Which is why we always talk
10:05
about the reason you need to take your Bitcoin into custody.
10:11
It's not enough to just get Bitcoin exposure.
10:14
You need to take that Bitcoin off the exchange and control
10:18
your own keys. You need to hold it in a wallet
10:20
that you control because if you don't, there might be a day
10:24
where a bank run happens and you can't get your Bitcoin.
10:29
Now, I don't know. How is paper Bitcoin defeated?
10:34
Good question. It's what I just said.
10:37
Eventually there is a bank run in the sense that everyone
10:42
realizes, wait, there's more claims to Bitcoin than actual
10:47
Bitcoin. And then everyone tries to get
10:50
to the escape route. You know, everyone tries to get
10:52
out the exit and then what? What do we know?
10:56
The price probably goes crazy because people are trying to
10:58
just get their Bitcoin off exchanges.
11:00
People are trying to sell the fake Bitcoin.
11:02
It could also potentially crash it because of the and crash.
11:07
I mean by the price because of the the bad PR.
11:13
But the way you beat paper Bitcoin is you take Bitcoin into
11:16
custody yes, just keep sacking stats.
11:20
This is the way. Where's your fake Bitcoin?
11:24
All right, anyways, So look, I'm not making this up guys.
11:29
It's it's not a, a nice revelation to say the least.
11:35
Now, my boy, you know, I've really been loving Fernando, AKA
11:39
Bass layer. Here's his take on this.
11:42
And I, I think this is an interesting take because he has
11:45
been talking about how narratives have been shifting.
11:49
Remember I talked about what he's been posting and what it
11:51
meant to me on Friday. Here's his take and I I think
11:55
this is an interesting take in regards to what we're finding
11:58
out as time continues to progress.
12:01
He goes to see a video game retailer writing options on
12:05
Bitcoin is kind of strange and interesting time to recognize
12:09
that for more players, Bitcoin has stopped being a thing you
12:11
buy and hold and instead starts being a thing you build
12:14
financial products on top of. Maybe the store of Valley use
12:17
case gets diminished as more companies like GameStop stop
12:20
holding Bitcoin like a saving account.
12:24
They're using it as the base layer for an income strategy,
12:26
which is a fundamentally different relationship with the
12:29
asset. And I'm sure more entities will
12:31
explore this. So it sounds like this is going
12:35
to continue to go on. If this is profitable for
12:39
GameStop, you better believe other companies are going to
12:43
look at this and be like, well, maybe I want to do this more.
12:48
So as I said, it's going to be paper Bitcoin eternal September
12:53
I think. I think this is only going to
12:55
continue until we finally see someone really big blow up.
12:59
Until people realize IO used to Bitcoin is not real Bitcoin and
13:06
they avoid the convenience to actually hold their Bitcoin.
13:10
This might go on for a little while.
13:12
Hence why the price action has been weird.
13:15
Hence why a lot of us are unsure about what's going on because
13:20
we're like, yo, the cycles are kind of intact, but also not why
13:27
aren't we going as high as we used to go?
13:30
I know we cheered on institutions in Wall Street to
13:32
come in here, but it's just not all our models are broken.
13:36
It's not working, you know, quote UN quote, wait, quote UN
13:40
quote, Bitcoin isn't working how we thought it was.
13:47
Maybe we maybe we found the smoking gun.
13:50
Maybe it's just the amount of Bitcoin IO us paper Bitcoin in
13:54
the system that is suppressing the Bitcoin price.
13:58
Now you're probably like Opti. Actually, I saw down under Blues
14:02
say it earlier. He's like, I thought it was
14:04
Binance suppressing the price. Well, why not all of them?
14:09
They want cheap Bitcoin. They're probably doing some, you
14:14
know, out of contract obligations or deals where
14:20
they're making money whether the price is down or not.
14:22
We all know Coinbase is one of the biggest crypto casinos in
14:26
the world. They don't really seem to care
14:29
about Bitcoin. I know they're saying we do care
14:31
about Bitcoin, but I, I don't like to really say that people
14:39
in our industry are necessarily our enemies here.
14:41
And I know if Coinbase saw this, they're going to be like, I
14:43
don't like these simply Bitcoin guys.
14:47
But the more news we hear from Coinbase coming out this year,
14:50
the more it's seems very obvious that they are not the biggest
14:55
fans of Bitcoin and it's probably just their business
14:58
model. I'm tired, boss.
15:05
I'm tired, boss. Yeah.
15:07
Who is manipulating us? Oh, OK.
15:11
Sorry. I drank some coffee before.
15:18
All right, thank you. Just us, I apologize.
15:21
So where do we stand on this? Obviously, as we've known for a
15:31
long time, I think even how Finney said this, what a week
15:34
after Bitcoin was created, we know that they were going to be
15:37
fully backed banks in Bitcoin and those that rehypothecate.
15:45
And now we're getting to the point where as much as we all
15:48
love the 21 million hard cap and we know that that's never going
15:51
to change. We are seeing institutions try
15:55
to do Fiat games on Bitcoin and the only way to protect yourself
16:01
is by taking Bitcoin into custody, personal custody.
16:05
It's not enough to just get exposure to Bitcoin.
16:08
At this point we probably shouldn't be using any of these
16:11
exchanges that are suspect. We shouldn't even be giving
16:16
money to these equity stocks you know?
16:20
I know we all want some Fiat games but we cannot support this
16:27
I guess is all I'm saying. How does extrology and the moon
16:32
face Dude don't troll me bro. Option contract paper.
16:40
Bitcoin expires Ant and Bitcoin never.
16:42
Exactly, Couldn't say better myself, bro.
16:48
If any of these exchanges are sketchy with paper Bitcoin, then
16:51
that's someone or an NT above them enabling them to do so.
16:54
Yeah, and that is the scariest part.
16:57
That is, as I was saying on Friday, you know, media literacy
17:03
when you read these news stories.
17:05
What Down Under Blues is saying I think hits a nail on the head.
17:10
It's not so much as just pointing at Coinbase as being
17:12
the big boogeyman. It's really more of, oh, this is
17:16
the trend that is happening, who else is doing this?
17:20
Which is why we keep joking about the fact that there might
17:23
be 42,000,000 Bitcoin and not 21 million Bitcoin.
17:28
Again, that doesn't really break the scarcity of Bitcoin.
17:33
It just means that more people think they own Bitcoin than
17:36
actually owning Bitcoin. And could that explain the fact
17:41
that it doesn't seem like there's a lot of liquidity,
17:43
There's not a lot of on chain supply or sorry, on chain demand
17:48
for Bitcoin because there's more supply than actual Bitcoin.
17:54
This is this is what we kind of walked into.
17:59
I think a lot of the stuff that we've seen in Bitcoin for a long
18:01
time is we cheer something on. We want something to happen and
18:06
then we totally forget the consequences, the unseen
18:13
consequences, the 2nd order effects of what we are cheering
18:17
on. And I'm guilty of this as much
18:19
as anyone. You guys know, I was very, very
18:24
OK with the Trump administration embracing Bitcoin, the ETF being
18:30
launched because I felt like they were going to pump our
18:32
bags. Excuse me.
18:34
And now we're like, wait, maybe we're cheering on our own
18:39
demise. I can't be the only one that's
18:42
thinking this simply peptide ass coming.
18:47
No, bro, we're all natural here, dude.
18:50
We're all natural. Oh, man, I don't know.
18:54
Am am I crazy? It feels like some bro.
19:00
OK, is this is this too? Am I, am I reaching here?
19:06
I think it's a real question. It they literally said we are
19:08
going to let Coinbase rehypothecate our Bitcoin.
19:12
So more people are probably doing this.
19:20
Oh no, I look down under Blues. I I really do like checkmatey
19:25
and I'm I'm kind of a checkmatey acolyte.
19:28
You know, I love Luke, my, my Australian brother and him and
19:34
Chuck maybe maybe you know, 2 Australians, that's probably why
19:37
they beef. But from the on chain metrics
19:40
that he posted, I agree with you.
19:43
There's just been a lot of selling.
19:45
There's been a lot of selling. And I think you can circle that
19:50
square by saying, look, there's been a lot of selling, but
19:52
there's also seems to be some paper contractual obligations on
19:58
all the Bitcoin out there. And we really don't know what
20:00
they're doing. We don't know what games are
20:03
being played and the only way that you can protect yourself is
20:06
by taking Bitcoin into custody. I think that's that's the only
20:13
way to protect yourself. And yes, a paper collapse would
20:17
be a gift for cheap Sat and the hopeful yes, I mean, it could it
20:23
could make the the price go crazy if everyone's trying to
20:26
get the exit door. Yeah, the PR would be bad and a
20:33
lot of people might sell it on the assumption that Bitcoin's
20:36
broken. But if there's 42,000,000 claims
20:41
on 21 million Bitcoin, sounds like the price is going to
20:45
double very quickly. I don't know.
20:51
This is the 42 IQ take of me here.
20:54
Just take it into custody is the way.
20:57
That's all we can really do, guys.
20:59
It's not that difficult. I know when we look at all of
21:06
this stuff and actually shots at the Down Under Blues because he,
21:10
you know, was yelling at me on Friday and he's like, you guys
21:12
have been so negative lately. We have a lot of good news, but
21:15
I think we're all a little demoralized and maybe that's
21:19
seeped into the show. Also, maybe a little bit of
21:23
audience capture. I'm like, are people bearish
21:25
right now? How can I get them to watch the
21:27
video and then we, you know, sneak in the absolutely bullish
21:31
about Bitcoin throughout the whole show?
21:35
But I think this is just starting, which is the worst
21:37
part about this. I don't think this is an
21:39
isolated event. I think this is going to
21:41
continue on for the foreseeable future unless everyone takes
21:44
their Bitcoin off exchanges or further retail, doesn't want the
21:49
ETFs and doesn't use the companies that are custodying
21:52
with Coinbase. I think we're in this for the
21:57
long run, as I've been saying for a long time.
21:59
Next topic of the OK, all right, all right, I have a good clip
22:03
for you guys. We'll keep it going.
22:04
We'll keep it moving. It is Monday.
22:07
Excuse me, did you guys see Larry Fink admit that woke is
22:12
dead? I got the clip for you.
22:15
And then we do have some pretty big news about the Morgan
22:19
Stanley ETF and kind of what a game changer that is.
22:24
So that's today's show. And then also I'm going to end
22:27
the show with a little bit of bullishness.
22:29
OK, Full disclosure, we're going to get a little bullish.
22:33
We're seeing some parallels to the past.
22:37
What does this mean? I, I also saw people say that
22:39
we're going to dump the next leg is coming, but we're going to
22:43
get bullish today. All right, next topic we're
22:45
going to go into the numbers. Today's episode is brought to
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se-ed.com store. All right guys, sorry, I'm I saw
25:01
something in the chat. I'm I'm I'm going to try to find
25:03
that and we'll and we'll talk about it.
25:04
But anyways, the current Bitcoin price is 60,000 sixty 7140.
25:09
It is a 46.8% discount from all time high.
25:12
The current market cap is 1.34 trillion and the block hide is
25:16
942,953. OK, so dude, market cap's
25:23
cooked. Anyways, we talked about this, I
25:27
don't know, months ago and at the time when we talked about,
25:33
excuse me, the fact that Black Rock was moving away from ESG,
25:37
we were mentioning it's over because BlackRock, you know, the
25:42
biggest asset manager in the world, basically said it's over.
25:47
They've been pushing a lot of these narratives.
25:49
And now over the weekend, we got a clip from Larry Fink literally
25:53
saying that exact thing, though he was very political about it,
25:57
but he basically admitted that the pendulum swung too hard one
26:03
way and now it's swinging the other way, which we've been
26:06
telling you for a while. This is part of what we do here,
26:09
that hey, the world isn't how it used to be and things are
26:14
changing because if you follow the money, you can see very
26:17
clearly that the experiment of what the 20 tens into the twenty
26:22
20s, early twenty 20s is completely over because they
26:26
realize they can't make any money off of it anymore, at
26:29
least anymore. And this is what that clip says.
26:32
So let's watch Larry Fink here admit what we all know to be
26:35
true. Do you believe the woke era, a
26:40
failed experiment, the ESG, the DEI, the kind of push for that,
26:47
that when you talk about things now, you talk in a practical
26:49
sense what we can do, what we can get done.
26:52
Looking back at that, how do you see it?
26:55
Society moves, the pendulum moves all the time.
27:00
In Black Rock's cases, you know, we are responsible for managing
27:05
money for everybody. And even today, as you said,
27:10
maybe these, you know, renewables are less talked about
27:15
it. I can tell you right now we have
27:16
many investors worldwide are investing in renewables, trying
27:19
to emphasize solar and other things like that.
27:21
They're trying to, we're working with Occidental Petroleum right
27:24
now to building the best carbon capture factories in Texas right
27:28
now. So do I believe the pendulum
27:32
five years ago was too far? Yes.
27:34
I believe we're more, you know, I'm personally more pragmatic
27:38
too. And I I believe.
27:40
Do you think BlackRock pushed some companies a little bit
27:42
further left than you thought? It was never our intention
27:46
because our job is to be. I got to be a fiduciary to
27:49
everybody who gives us money. Our responsibility, Brett, is to
27:53
making sure if, if, if one of our investors wants to invest
27:57
100% in hydrocarbons in Texas, I'm investing 100% of the money
28:01
in Texas. If, but if another state fund
28:05
wants us to invest in, let's say all green energy, we're going to
28:09
do that. It's their money.
28:11
But today, because of AI, the, and the overwhelming need for
28:15
power and electricity, it can't just be one way right now.
28:18
It can't just be hydrocarbon. So if you, if you see what even
28:21
what China is doing right now, China is rapidly building more
28:25
nuclear than any other country in the world.
28:27
They have the largest solar fields in the world, yet they're
28:30
the biggest importer of gas and, and, and oil.
28:35
And so to me, more importantly, today, I think society has moved
28:40
into a better position of having more pragmatism.
28:44
And what you're hearing from me is the I'm echoing what we're
28:47
hearing from our clients. Guys, we have officially lived
28:59
through the multi trillion dollar psyop.
29:04
Congratulations if you made it this far, you did it.
29:09
We made it, but I think it's becoming very obvious that now
29:14
money is not backing a lot of the things that we probably
29:18
don't like. And I think it, you know, one,
29:21
because of BlackRock admitting this much, but further, because
29:26
of the political tide right now. I know, you know, we're not all
29:32
the biggest fans of the Trump family or Trump himself, but you
29:35
can see that the political sentiment has fundamentally
29:39
shifted. Now, is this all, I don't want
29:44
to say necessarily controlled opposition, but you can see that
29:50
what they tried to push on us for the last, I don't know,
29:53
since I guess like, you know, 2008 till now, it's been almost
29:58
20 years. It's fundamentally not
30:03
profitable anymore. They realize, hey, oh, at this
30:06
point we can't keep doing that because you don't agree with it.
30:11
I don't think this is the final stamp of it being officially
30:14
over, but we're starting to see it.
30:17
It started last year. We saw BlackRock essentially and
30:20
the, you know, money backing the ESG stuff.
30:24
Now he's out on Fox News basically saying the same thing,
30:27
like the pendulum swinging the other way.
30:30
And we've been covering this on the show for a long time.
30:34
It's just very interesting that when the big money starts to say
30:39
it, it takes a, you know, downstream effect for other
30:42
people to finally realize that things have changed.
30:45
But we're here to show you. Like, they're saying it
30:48
themselves. Sings what's actually, someone
30:51
said this. This was a good one.
30:55
The bit connect, the bit connect meme here the world is.
30:58
No, the world is not anymore the way it used to be.
31:04
We've officially crossed the Rubicon.
31:07
It's no longer we're no longer in the same era that we were in
31:10
the early twenty 20s. It's becoming very clear that
31:13
things are changing. Whether that's going to be
31:15
necessarily in the right direction is probably up for
31:18
debate, but we know that the pendulum to the left, the
31:21
pendulum to ESG DI, all the, all the stuff that, you know, woke
31:28
era, it's officially going the other way.
31:31
Now, again, talking about media literacy, it's like, well, why
31:37
is that happening? Well, obviously I don't think
31:40
the the normal person, the average person thinks of that as
31:46
being healthy. Let me let me put it that way.
31:50
And now we're moving in the other way.
31:51
So you can see that they are going to try to guide the
31:54
conversation into, you know, the pendulum swinging the other way,
31:58
which probably comes with its own cons and there might be some
32:01
pros out of it. But I think it's official.
32:04
What March 30th, 2026, I actually this was let me see the
32:08
date. This was actually on Friday.
32:13
So March 28th, 2026, Larry Fink officially puts the stamp on
32:20
woke being dead. That's where we are.
32:23
OK, what does this mean for all of us?
32:29
I really don't know yet, but I do know that a lot of the things
32:33
that we don't like are probably not going to get funded like
32:35
they did in the past. Hopefully some good comes out of
32:39
this Fiat brain. Not indeed.
32:42
OK. Anyways, let's get into the
32:44
news. I'll be right back.
32:49
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35:27
All right, guys, I will talk about the ETF, but I saw someone
35:30
in the chat say let me see if I can find it.
35:33
Said that Senator Lummis confirms that the Clarity Act is
35:40
finished. Let me see I, I can't find the
35:45
comment. Oh, here we go Lummis tweets
35:48
clarity act is finished. Price will go higher regardless
35:50
of the options contract on the order line.
35:53
So I didn't I, I was looking on Twitter as the break was
35:56
happening and I, I couldn't find that, but I did find this video.
35:59
So let me let's play this video together.
36:02
I'm literally watching it as, as we, you know, do this together.
36:06
We're watching it together. So I don't, I don't actually
36:09
have this uploaded yet. So let me know if you hear this,
36:14
the genius said. The stable coin bill this week,
36:18
I don't think we're going to complete it this week.
36:20
We'll probably have to go into next week because a number of
36:25
amendments will be filed. But we have worked long and hard
36:30
to bring Democrats to the place where they can vote for cloture.
36:34
I think we're there. So what are the remaining
36:37
hurdles for Democrats? What have they told you that
36:40
their concerns are? What's keeping them from getting
36:43
on board completely? Well, we have generally agreed
36:48
to many of the amendments they wanted.
36:51
There were concerns about illicit finance.
36:54
We've addressed some of those and we're just waiting to see
36:59
what amendments are filed by both parties as we move the bill
37:03
to full consideration on the floor of the Senate on the
37:06
Genius. OK, so you saw that this
37:08
happened. This was on Bloomberg about an
37:11
hour ago, so breaking NEWS UPDATE.
37:15
It looks like it's no longer a conversation of months.
37:19
It's really a conversation of this might happen in days next
37:22
week. So maybe next week we find out
37:26
that the Clarity Act is passed beginning of April.
37:31
Like what Senator Tim Scott think his name Tim Scott has
37:36
been saying kind of a plot twist.
37:40
To be honest, I'm not, I'm really surprised that this is
37:43
where we are. So all right, that's, that's on
37:48
the clarity Act. I, I really wasn't going to
37:49
cover it, but I saw someone in the chat mention it.
37:51
So, you know, live, live breaking news.
37:55
Anyways, this is what I really thought was interesting over the
38:02
weekend. As I was mentioning, Whoa, this
38:07
is interesting. What's going on here?
38:11
That's new. I don't know what's going on,
38:17
guys. There we go.
38:22
OK, so as I mentioned last week, it I I kind of glossed over it a
38:27
little bit, but we saw Morgan Stanley, you know, one of the
38:32
biggest banks in the world announced that they are going to
38:38
do a Bitcoin ETF. And this is part of the trend of
38:42
every huge Wall Street institution wanting to build
38:45
Bitcoin products. Obviously BlackRock started this
38:48
trend with the I bit. And now what we're seeing is the
38:53
competition to be the leader, which I think Morgan Stanley
38:57
probably has an uphill battle to try to knock off BlackRock, but
39:03
they made a very interesting move and it is we finally got
39:08
the announcement of how cheap their fees are going to be.
39:11
Here's but Bitcoin magazine goes, Morgan Stanley Spot
39:14
Bitcoin ETF will charge the cheapest fees on the market,
39:17
even cheaper than Blackrock's ETF.
39:20
And here is the screenshot. The trust will pay the unitary
39:24
delegated sponsor fee, which is accrued daily at an annualized
39:27
rate of .14% of the net asset value of the trust, .14%.
39:35
Here is the block covering it. Morgan Stanley set Spot Bitcoin
39:39
ETF fee at .14%, undercutting every rival on the market.
39:43
Just looking at the quick take, Morgan Stanley revealed a .14%
39:48
annualized sponsor fee for its proposed Spot Bitcoin ETF in an
39:51
S1 filing, which would make it the cheapest such product in the
39:54
US if approved. The fee undercuts Grayscale
39:57
Bitcoin Mini Trust, currently the low cost leader, at .15%.
40:01
And sits 11 basis points below Blackrock's iShares Bitcoin
40:05
Trust at .25%. Bloomberg ETF analyst James
40:09
Seifart Seifart wow called the pricing a big move and predicted
40:16
a launch in early April. Here is Eric Balkunis's take and
40:21
he goes semi shocked. Morgan Stanley's Bitcoin ETF
40:24
will charge 14 bips, making it the cheapest spot Bitcoin ETF on
40:29
the market and 11 bits cheaper than I bit.
40:31
This means none of their advisors will feel conflicted
40:33
using it and they have a shot at getting outside assets.
40:37
Smart launch probably in next two weeks.
40:40
Nice catch on the following from Marty Party which is what he's
40:43
quote tweeting. And here is James's tweet.
40:47
Wow we have the fee on Morgan Stanley spot Bitcoin ET FM SBT
40:51
will charge just .14%. Big move here.
40:54
They are not messing around. Likely to launch in early April.
40:58
Now I know I'm not the biggest ETF fan, we're huge self custody
41:04
advocates. But this just goes to show that
41:08
the interest coming from Wall Street, from the institutions,
41:12
whether you love it or hate it, it is serious.
41:15
We've got to the point where they're literally undercutting
41:17
themselves to get to market with a better Bitcoin product.
41:22
Now, what does this mean for all of us?
41:24
Hopefully at least this has been the hope for all of us when we
41:27
were cheering on institutions, is that more capital flows in if
41:34
they can deliver a product. And again, I don't recommend
41:37
these products, but if they can deliver a product that is very
41:43
beneficial with, you know, the best incentives for people to
41:46
deploy capital, especially as people start to understand that
41:50
Bitcoin is something you need to hold for the long term.
41:52
It is something that needs to be a part of your portfolio.
41:55
Remember, I talked about it last week that it's no longer a
41:57
conversation of do I own Bitcoin or do I not own Bitcoin?
42:03
The conversation has evolved to how much Bitcoin do I add to My
42:07
Portfolio? That is a fundamental shift and
42:11
now literally literally every huge bank in the world wants a
42:16
Bitcoin product. It's absolutely insane.
42:20
I know we talk about the separation of Bitcoin and state.
42:23
I know we talk about the, you know, separation of Bitcoin and
42:25
Fiat, but the Trojan horse effect of Bitcoin is totally
42:30
happening right now with everyone.
42:33
Maybe it's silently because the the majority of people still
42:37
don't think of Bitcoin in the way that we do, but every big
42:42
institution, every big money manager, bank, hedge fund, they
42:49
all want a little bit of the Bitcoin pie.
42:51
They're all trying to deploy Bitcoin products.
42:54
If this is not a sign of the times that Bitcoin is going into
42:58
the quote, you know, early majority phase, I don't know
43:02
what is. This is why I think this is
43:05
interesting. It's not so much that, OK, we
43:07
got another ETF. They have low fees.
43:09
No, it's it's Morgan Stanley that is trying to undercut a
43:15
competitor with a better Bitcoin product.
43:18
This is the conversation that we always talk about in Bitcoin,
43:20
that as Bitcoin is the free market, when products come out,
43:29
whether they're good or bad, this is all beneficial for us.
43:33
I don't recommend buying the ETFs, but it it does, it does
43:40
have this like deflationary effect if I'm using that
43:43
correctly, You know, where everything just gets cheaper
43:46
when you're on the Bitcoin standard.
43:48
Again, I wouldn't use these products, but it just goes to
43:51
show that they are competing. It's like the race to zero.
43:56
They just want Bitcoin products and they want to attract more
43:59
people to buy it from them, which is obviously not the best
44:03
idea, but they all need Bitcoin products.
44:08
I think that's a big take away. They need Bitcoin products.
44:11
It's no longer enough to just be like, yeah, you know, if our
44:14
customers want it, remember the Vanguard CEO that got fired or
44:19
he stepped away? It's like now we're never going
44:21
to give our customers Bitcoin products.
44:23
And then he left. And then the new CEO was
44:26
literally the guy that launched the Black Rock ETF.
44:32
Sorry, that's where we are. Every institution needs a
44:36
Bitcoin product. This year might get interesting
44:40
in just the pure fact that everyone is going to look at
44:44
Bitcoin a little more seriously. Does that mean the price is
44:47
going to go crazy? I don't think so, but the
44:49
conversations around Bitcoin being a real thing to own is
44:53
totally changed. To me, that's the most
44:56
interesting thing going on. I'm betting we dump on clarity
45:00
at passing. Probably true, dude.
45:06
Totally true. All right, anyways, you guys
45:09
want to get a little bullish. Today's show might be a little
45:11
shorter than usual, so I want to keep it moving.
45:17
We're going to go into the culture and have a little fun.
45:21
I want to give a shout out to our partner Hive Digital
45:24
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sustainable digital infrastructure.
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You can catch the latest buzz at Hive Digital Tech or at Hive
45:58
digitaltech.com all. Right, guys, it's a culture.
46:06
It's Monday, I'm a little cooked, but we're here
46:12
nonetheless, OK, We're here nonetheless.
46:14
We got some news. It looks like the Bitcoin price
46:18
is being suppressed. It looks like we might get the
46:22
Clarity act. It looks like Wall Street wants
46:24
to launch Bitcoin products. Dare I say this time is
46:30
different? No, I can't say that because let
46:36
me hold on. Let me look at the price.
46:38
Actually, dude, wait, hold on. Can I, can I share a meme with
46:42
you guys? Am I allowed to share a meme?
46:44
I know, I know. You guys yell at me and say that
46:48
I can't have any fun here. I got to be super serious, but
46:53
shouts out to Harry Garcia on Twitter.
46:58
I thought this was so funny. Hold on to me.
47:02
This is so good. Classic meme here.
47:05
And, and dude, we're doing a meme me Monday meme Monday
47:08
culture, maybe. So we got the Drake meme and it
47:12
goes YouTube TA content Nah opti on the one minute chart.
47:17
Yeah. Oh, dude, I was dying when I saw
47:23
this. Shout out to you, Harry Garcia.
47:26
I I truly, truly appreciate this.
47:28
I thought this was so funny. It's a dumb meme, but you know,
47:32
it really amazes me that me trolling with the one minute
47:38
chart is like a bit now. And now everyone knows you got
47:43
to look at the one minute chart and it's like my thing now I'm
47:48
not the one that created watching the woman.
47:50
I don't. I just love that you guys are
47:53
like Opti put on the one minute chart.
47:55
Can we do the one minute chart? I don't know about today.
47:58
Maybe if you're lucky, maybe if you're lucky, we'll do the one
48:00
minute chart later. But anyways, I saw this good
48:03
tweet. Shout out to Joe Consorti.
48:08
I don't know, I got I got a little bullish when I saw this.
48:10
OK, so here's the tweet and Joe goes.
48:15
Bitcoin is at the same price that it was 4 1/2 years ago, the
48:19
fourth longest period in history.
48:22
The median 18 month forward return from this point is 214%
48:28
every time Bitcoin has gone flat for three plus years.
48:31
What felt like wasted time turned out to be a launchpad and
48:36
here we are. Excuse me.
48:41
So it could go on a little longer, you know, this bear
48:44
market could go on a little longer, but as you can see the
48:52
upside, as we all know, this is really more for, you know, the
48:56
newer people in the chat, you know, the newer people that hang
48:59
out with us. If if you've been in Bitcoin for
49:01
a long time, you know that Bitcoin is going to go up.
49:04
But what has been super interesting is that in this
49:07
current bear market, it seems like there's a new, I don't
49:11
know, entrant into Bitcoin, you know, a new investor in Bitcoin.
49:14
And they're, they're looking at this thing.
49:16
And I don't know if you've gotten the, the text messages or
49:19
the calls from your friend, but they're doing the hey, bro,
49:23
should I still be holding this thing?
49:25
And we're just like, yes, of course, dude, what are you
49:28
doing? If you own it, keep buying more,
49:30
you're good to go. But how about them numbers?
49:34
What's a 214% increase from 60K? Are 60 where?
49:40
Where are we at 66 K? Is that in the one eighties
49:48
66120? Yeah, I think my math is
49:52
probably wrong today, but how about them apples?
49:57
Guys, shout to the Joe Consorti. Are we not feeling bullish right
50:00
now? Is this not bullish?
50:06
One minute charts are for fun because of it Yes, exactly.
50:10
That's the point. All right, we'll do one minute
50:13
chart. All right, it's you guys want to
50:14
have some fun? I'm alone here.
50:16
We're having fun. We're going to have some fun.
50:20
Is this up? No wrong one guys, look at this.
50:28
The one minute chart's so bullish.
50:33
OK, so look, we're we'll, we'll zoom out.
50:36
We'll zoom out. We'll do 12 months.
50:39
Not looking good so far. Dude, are we going to end the
50:43
year? Red 2 did 4 year cycle broken 2
50:47
green one, red two over boys, let's do one month.
50:52
Brutal. We're back to the 200 day moving
50:56
average could go lower, could go lower.
51:01
We're getting we're getting cooked boys.
51:04
The one day is sky. Oh, I'm out in bit stab.
51:07
It's it's OK, my trend line got demolished, but let's go into
51:12
the one minute chart 'cause that looks so bullish dude, it's
51:16
going to pump Omega candle coming more bullish tweets,
51:24
please all right, let me see let me see can I pull Do I have any
51:28
more bullish tweets No, but I do have a good tweet here, which is
51:36
an interesting all right, it's not it's not really that
51:38
bullish, but I'm going to talk about it anyways.
51:40
I saw this tweet, which is interesting too.
51:42
So Bitcoin has followed the same pattern since the conflict began
51:46
in the Middle East. Black Monday or Black Monday
51:49
fears never play out from the previous week weekend, leading
51:52
to a Monday bounce, then profit taking throughout the week as
51:56
Strait of Hormuz doesn't open, then de risking going into the
51:59
weekend, rinse and repeat. I thought this was interesting,
52:03
obviously before the market opened because I don't think it
52:08
really played out. Yeah, I guess it kind of played
52:11
out the same way. So Monday morning market opens
52:16
and then we're just going to kind of drain out until next
52:19
Monday. So I guess that's not that
52:23
bullish, bro. I see a cup and handle bro on
52:28
the one minute you're crazy on wait, hold on, Ricardo on what?
52:35
What what time frame the one minute cup and handle you're
52:38
insane. That is next level.
52:41
All right, anyways guys, I'm going to keep it going for a
52:43
little bit, but that's that's what I got for you today.
52:47
It is a slow Monday, but I wanted to, you know, get you a
52:52
show up, keep you informed. Our ADD does not allow for a 2
52:57
minute charge. No, it doesn't really.
53:03
Matthew, let me let me see if I can find that.
53:07
I guess we'll cover one more thing if I can find this.
53:15
Math, Matthew says in the chat. Powell said Bitcoin will be
53:19
lower for longer. Honestly, that's kind of
53:23
bullish. I kind of feel like that means
53:26
Bitcoin's going to pump. I can't find that, bro.
53:34
I can't. Yeah, I can't find that.
53:40
All right. Anyways, the lower the fees, the
53:43
greater the rehab. Oh, dude, truly, bro, that's a
53:46
great point. Boys, we're so cooked.
53:51
Boys and girls, we're so cooked. There's more than 21 million
53:56
Bitcoin. You better be taking your
53:57
Bitcoin in the cut. If if if there you take away
54:00
anything from today's show. It's this.
54:04
The importance of custodying your Bitcoin is at the top of,
54:10
or should be at the top of everyone's list.
54:13
Like your boomer uncles and parents.
54:18
They're not going to listen to you because you're, you know, a
54:20
radical. You're extremists, you are
54:25
insane, you're crazy. Maybe you're just stupid.
54:27
I don't know. But taking your Bitcoin into
54:31
custody is the most important thing to be doing.
54:33
Period. End of story.
54:35
Full stop. That's that's the best thing to
54:38
be doing. Actually, it's the only thing to
54:40
be doing. We can't stop other people from
54:43
buying these products. But what we can do is 1 take our
54:49
Bitcoin into custody and two, just make sure more people
54:51
realize that Bitcoin is a thing to be investing in.
54:56
So here we are, bro. Here we are Bros.
55:02
Let me see down in the Blues In 2021, Bitcoin had 7UP months to
55:05
get to all Taha. Way overbought. 2026 down months
55:09
in a row way oversold. Both prices are the same.
55:13
Damn True, true, true. In the chat.
55:20
All right, all right anyways, guys, Ricardo, thank you.
55:24
Don't thank me. Thank you, man.
55:28
All right, Got. They're extremists for believing
55:30
the mainstream media. You know, I really it's thank
55:32
you guys for showing up, hanging out with me.
55:37
We're covering the news together.
55:39
OK. I really wish I could have been
55:42
like, there's no show today because there's nothing going
55:46
on. But the Coinbase story.
55:47
I think it's kind of really interesting, bro.
55:52
Coinbases are up, fam. For the Gen.
55:56
Z Ers out there, coin paces are hot, fam.
55:59
All right, all right, anyways, I'm rambling.
56:02
I need to take a nap. I love you guys.
56:04
I'll see you tomorrow. I need to get some food.
56:08
I drink a little too much coffee, which means I'm not
56:10
going to be able to take a nap. But it's Monday, which means the
56:15
rest of the week, same as every week, we go live around 12:40.
56:20
Make sure you're eating good, make sure you're working out,
56:25
make sure you get your steps, make sure you get some sun.
56:28
Call your loved ones and I'll see you tomorrow.
56:32
Peace out Bros. I will see you on the flip side.
56:37
Today's episode was brought to you by bitcoinwell.com, a
56:41
Bitcoin only platform on a mission to enable financial
56:44
independence.