Latest / The Paul Barron Crypto Show / Bitcoin Nears $72,000 | Ethereum ETF Delayed By Gensler?

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Bitcoin Nears $72,000 | Ethereum ETF Delayed By Gensler? · The Paul Barron Crypto Show

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Markets are heating up and eth looks like we might have a little bit of
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a delay. We'll break it all down for you today. My name is
0:13
paupe Baron. Welcome back in a tech path. We'll get started. We'll
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talk about Ethereum, get into some bitcoin charting, take a look at actually
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we might even take a look at some sentiment today. Give you guys kind
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of a rundown before the market. There are some tokens out there that are
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making some pretty big moves, so we'll try to break down some of that.
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to get started. Let's get into a few pot topics today. I want
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to open up here of course, and we've kind of hit on this a
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little bit this week, but coinbase has launched the smart wallet and it is
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here, and this is going to be an onboarding bonanza, and we've talked
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to If you haven't checked out our Base video that we did yesterday, go
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back and look at that. There's a lot happening within the Base ecosystem.
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There's a lot happening, I think now with what we're going to see around
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project developments in the bake Base ecosystems. So the smart wall, it's going
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to become a pretty significant tool set. I want to go to a clip
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that had Novagrats and Jesse Pollock on talking about what this means for coinbase.
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Take a look what changes in the regulatory framework need to be made before Base
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can issue its own token, its own L two token that gets the trade
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where the users start to be able to generate their own value and keep value
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by being a user. Yeah. So, as we've said from the beginning,
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we have no plans to issue a token for Base, and I think
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what we're seeing in the broader regulatory environment in the United States is that's just
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too unclear for entrepreneurs. And I talk with builders every single day, and
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what we're seeing pretty consistently is that builders are having to spend more money on
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lawyers and regulatory guidance than they are to spend on engineering, and that sort
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of overhead for startups in a country that has historically been known for innovation is
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really really bad. And we think that if we don't get that regulatory clarity
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that we've been pushing for, we're going to see innovation leave the United States
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and go overshor right, right, But I guess we had you know,
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the fit twenty one bill pass at least the House. It is not in
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the setting yet, but the Senate is going to come with their own view
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what something is as important as that then allow you guys to say, hey,
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because there's a tremendous amount of potential shareholder value, you know, locked
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up in what you guys are doing. And so absolutely, and we're really
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excited about the shareholder value that bases starting to generate, as you've seen starting
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to generate really significant revenue for the business. I think in terms of the
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regulatory framework, we've seen progress with FIT twenty one. We've seen progress with
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state frameworks like the DONA in Wyoming, and we're really excited to see that
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mature, and we're confident that as those frameworks mature, we're going to see
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more innovation from Base and from the broader on chain economy. So a couple
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of points that Pollock was hitting on there is, you know, security or
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excuse me, regulatory environment is really kind of the impetus of not being able
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to launch a token, which would unlock to what novogrants is talking about a
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lot of value for coinbase as a stock price and all of the shareholders that
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are in Coinbase. But I'm kind of on the fence with that because I
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think Pollack kind of alluded to it without saying it, and that is they're
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using this as a trump card to simply say we can't innovate in the United
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States. That's a pretty big deal to come from a publicly traded company,
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an ipo like Coinbase, one of the most I would say respected crypto facilities
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on the planet that can't innovate in the country that it operates in. That's
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a pretty big statement. This kind of walks the walk for them, So
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I do understand that, and I think this is probably one of those things
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from a regulatory standpoint and also a political standpoint for Brian Armstrong and Coinbase to
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not do a Base token at least for now. We'll see all that changes.
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They go in a little bit further on how they make money with Base.
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Take a look see. One thing that struck me also is that you
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have the exchange itself, but when you look at Base beyond the ability for
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people to build on it, how does it make money at the end of
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the day. Does it add any financial value to coinbase and does it charge
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anything of the people who are using it or a plan to. So the
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really powerful thing about Base is that it's a new technology platform, and kind
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of like the Internet transformed the world in the early two thousands, we expect
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Base and other chains to transform the world in twenty twenties and bring about the
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new on chain era. And the way that happens is by making it faster
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and cheaper and easier for everyone to build new things. And when people build
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those new things, we're going to see an incredible wave of new applications that
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users are going to use and that they're going to pay for. And Base
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is the application platform kind of like AWS that enables that. So as more
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applications are built, Base is going to generate more revenue, and as more
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applications are built, Coinbase is going to be the front door that lets users
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access those applications. And that combination kind of both being the platform and being
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the front door, is incredibly valuable and it's something that we think is going
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to generate a massive amount of value for our customers and a massive amount of
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value for the business in the next few years. So if he is right
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and Coinbase kind of becomes the next generation of on chain Internet and all innovations
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or most of new innovations would start building on base, he is correct,
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that's going to open up a huge wave of not only activity, but also
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on chain accounts, the ability to create liquidity in those, which is probably
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going to come from USDC, of which is most likely going to be held
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in either a coinbas wallet and or a coinbase account, all of which can
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now create yields. So there are values to them other than the fact that
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on chain liquidity is a big deal. But also just think about this,
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if you had the top one thousand companies innovating on your internet, so to
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speak. But that is kind of where base is going. The fact that
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we saw one thousand projects rolling out here for on chain summer was pretty impressive,
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and I think it's only going to compound. They're going to see this.
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We see twenty five hundred projects next year. Think about the number of
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projects that are going to hit. Not everyone is going to do it,
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but you're going to find some next duber eats, next type of innovation in
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AI, all sorts of projects that I think are going to start rolling out
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within that. Let's move on to Bitcoin real quick. Bitcoin tapping seventy two
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K could be the fuse for a new all time high. Many people looking
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at seventy two is kind of the mark of redemption for bitcoin. Tapping of
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seventy two right now, there's about one point five billion of short positions ready
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to be liquidated all the way up to around seventy five K, which would
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be an a an all time high. That is interesting because there are a
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couple of points that we've been watching here with sentiment data that has for bitcoin
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in general has been starting to move slightly up. And when I go to
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the chart, I'm going to go I don't think I have it up,
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but I'll bring up the chart here in a second and we'll get into that
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along with some stuff around ethereum. But I think that's going to be a
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factor here of breaking through that seventy two K window and also starting to see
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if it can hold, because that's kind of been the issue right now.
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Bitcoin makes it up around seventy one seventy one eight and it starts to recoil
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back down to where we've seen the performance here recently, back in above seventy
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k against today. All right, justin the Bitcoin ETF had a massive NetFlow
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eight hundred and eighty five million. Let me zoom in on that for you
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guys, intern eighty five million on the fourth of June, which is now
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second highest daily net inflow ever. Another big reason why we're starting to see
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a little bit of price movement. Further into this, you get black Rocks
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starting to look a little bit more antsy in terms of tokenized assets. So
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Blackrock and Citadel planning to launch a new national stock exchange in Texas, and
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they're going to try to compete with the New York Stock Exchange. Now you
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think about what is happening in Larry Fink. Listen, We've talked about him,
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and we've shown many clips on this channel. His conviction toward tokenized assets
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and token ised securities is unmatched. I haven't seen anybody in Wall Street really
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understand it to the level of where he thinks change is going to happen.
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I believe that's the case. So he may be in a position where he's
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trying to get in early so they can come faster to market with token ised
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securities. That's an option that could be playing into this. I want to
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go to a clip here by Gensler because he's talking a little bit more about
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these exchanges and their roles. Take a look. Okay, now, Polkont
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Cordana, Cosmos, immutable in bank, Osmosis, sushi swap, my neighbor
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Alice have all traded millions. I'm talking about millions of dollars this very morning.
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No, do we should we have a sushi swap? Maybe an EHTF
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or the proprietary country you say, I would think that bank is a natural
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and Osmoses, these are trading millions. Carett these are millions of dollars.
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These things are traded. Shouldn't we have it? Should we have some sort
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of product. Let me say something more broadly about the crypto markets right now,
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without prejudging any one, these tokens, whether they the ones Jim listed
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or other tokens, have not given you the disclosures that you not only need
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to make your investment decisions, but also that are required by the law.
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It's a basic concept in our securities market. We the sec tomorrow are turning
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ninety. Happy birthday, sec ninety. And what President Roosevelt did is he
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created this commission to oversee that you, the investors, get disclosure. And
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in the crypto markets, they aren't giving you that disclosure. And secondly that
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exchanges like here this floor of the New York Stock Exchange get properly regulated to
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protect against fraud and manipulation, and they don't trade against you. And these
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crypto exchanges, Jim are doing things we would never allow this New York Stock
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Exchange to do. Remember, most of these exchanges are in decentralized markets,
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and that in itself kind of eliminates the trading against you, other than just
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the liquidity of the markets. But I would argue that point is that this
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is something that Wall Street's done for quite some time. Trading. You know,
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most of them have been hedge funds, and we've seen the accolades of
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all sorts of insider trading within Wall Street. So it doesn't he's acting if
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it doesn't happen. It does happen quite a bit, and it's a factor
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that they continue to defend. Now you look at this right here, and
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this kind of showcases this. Right here, the Massachusetts Securities Regulator now said
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they're going to investigate Rowing Kitty for Jimmy. And remember Massthod's politicians have been
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trading themselves. So if you look at the current reps within MASSA cut Katherine
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Clark, Congressional Subcommittee, you've got Rep. Lori Trahan, You've got Bill
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Keating, Seth Maulton. All of these are trading out there. And of
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course remember that most of their portfolios are beating the market at the moment.
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So do they have access to information or what are they doing? You know?
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And these are the kind of things that are not disclosed in many cases,
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and just like traditional hedge fudge and especially on shorts, where we don't
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get those kinds of disclosures. So it is something that continues to pretty much
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I think plague Wall Street. The se SC announces also they're looking at game
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stop on options activity for manipulation by after Rowing Kitty disclosed his option trades at
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US Congress. Option trades all the time, Yes they do. For example,
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Pelosi bought in Nvidia and Vidy call options before the major billain news,
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which is up now two hundred percent on our calls in the last just one
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hundred and ninety days. So yet no investigation. Interesting times we have here,
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So when the game isn't playing in their direction, it's kind of like,
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hey, let's take the ball and go home, or let's investigate.
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Here's a quick whether you like this or not in terms of short selling,
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but take a look at this one right here. This is RFK talking about
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it. You can see yourself. So call eighth and would you make myself
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ahead eight like a resellers? You do? Okay? And then if you
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make sure, how would you make sure resll investors are constructing from Wall Street.
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One of the ways that's done supremptory short selling. And that's why I
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consider myself an a you know, I think there's argument for short selling.
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In some cases. Predatory short selling is a way of deceiving the consumer in
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order to make quick cash excusions to the pockets of the people who are in
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charge through the interested parties, and it's crooked. Oh. In that sense,
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I consider myself an ape, all right. He's getting at the point
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of predatory short selling, which is the orchestrated short selling that often does dump
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on retail investors. Though I am for open markets, I think open liquidity
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is really kind of the only way to go. But when you have the
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scorecard and you have the cheat sheet, then I think there's a problem there.
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If I think those playing fields were level, different kind of scenario would
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play out. I think that will be I think waged within the political realm,
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whether RFK gets in or we see other financial institutions that maybe start doing
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things a little bit different, especially if we start to see a lot of
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this stuff go on chain. It'll be one to watch into e and right
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now ethereum course, as he sees slowing down the s ones, will we
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see any ETF by the end of this month, I don't know quite yet.
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Here's a clip on Gensler's talking about these s's ones and how long In
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January we approved an exchange traded product on bitcoin and about a week and a
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half ago similar filings to list on the New York Stock Exchange List on NASDAQ
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and the light exchange traded products on Ethereum. Ethereum had been traded on the
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Chicago Mercanty Exchange futures for three plus years, and the staff looked at that
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closely and that was approved. Now the underlying exchange traded products still need to
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go through a process to have the disclosure about that, and that will take
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some time, but they're working on that right now, all right, So
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as you you can see, they're talking about a position right now where we're
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probably going to see a little bit more slow down on these ethtfs. But
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it does open up an opportunity to think for Ethereum, one thing to look
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at, and we'll look at some sentiment here in a second, why Ethereum
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can now perform in the next stage of the bull run in the bull market.
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A couple of points they hit on within this article. Let me kind
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of zoom in on that for you guys. Wales has been accelerating eth accumulation
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since March, so a lot of people starting to buy more. In As
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of June this year, more than ninety seven percent of stakers are in the
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money. That's a big deal. So staking accelerated significantly in twenty twenty three.
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Remember all of that was happening during ETH under the K two K mark.
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All of that is still good signed because what it means is people are
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willing to hold and longer positions will be tougher to beat. So if you
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look at the expectations that ETH may track a trajectory of bitcoin and may have,
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you know, some potential. I think here to see some pretty significant
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growth. Big factor is going to be in June will be the accumulation for
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the ETF launch. How much will be purchased, We don't necessarily know,
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even though there's some people saying that we could see some significant numbers coming into
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this. Traders now seeing that ETH could try for around six thousand in the
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next few weeks, Love to know your thoughts. You think ETH here we
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are filming this, you know, early June, within the next six weeks,
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next few weeks before July, could we see an ethereum at above six
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thousand dollars. That would be a significant move. Imagine where bitcoin would be
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at that point. I want to go to a quick clip and this is
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getting into the CFTC, because this is where it gets a little bit more
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complicated of who is going to be controlling these digital assets in the future.
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Take a look, this is about filling a gap in regulation, and that
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bill largely accomplishes that goal on the CFTC side, giving US regulatory powers to
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register exchanges, custodians, broker dealers, intermediaries, and bring some transparency to
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this particular side of the market that involves commodity tokens themselves. So you are
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in favor of it, I mean, I'm supportive of moving forward with legislation
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to fill the gap. There are some issues that I raised with members of
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Congress about the bill, but as you said, it's just one step.
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Senate still has to take up the bill. The White House has weighed in
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and says it wants to work with Congress to fill the gap and further support
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both innovation, which you know, sort of outside of my purview, but
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understanding that there's gaps in regulation and customer protection issues. But you're in favor
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of the idea that it does give power over the cryptocurrencies themselves to the CFDC
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one hundred percent. And I've said that all along. We have, you
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know, as defined by current law, we have commodity tokens, we have
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security tokens. And what we've experienced at the CFDC now for over a decade
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is this gap in regulation where we don't have tools to regulate the market and
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it's leaving a pretty significant chunk of the market unregulated. So when you look
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at commodity tokens like bitcoin and ether, you're talking about sixty percent in the
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entire market cap of the crypto market. And with that in mind, I
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think we have a serious issue in terms of filling that gap. And this
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is what this legislation sort of achieves. So this could fall both positive and
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also negative. This, of course is Rosston Benham, the chair of the
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CFTC, and we've talked about him quite a bit. We've actually had the
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former chair of the CFTC on our show. This would be something to look
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at. We probably should get him back to talk about, you know,
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kind of the framework if the CFTC does get you know, the guidance authority
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of digital assets, especially around commodity tokens, like he is mentioning what that
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might mean. Now this goes a little bit further. In the same interview,
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here's Ben I'm talking about Gensler. Take a look sometimes Gary Gensler,
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he knows about crypto is an mike. I wouldn't say it was one hundred
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and eighty, but he certainly got it. Seemed like he changed a little
18:55
bit on what he thought about bitcoin, what he thought about crypto in general.
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When you look at certain individual Center and Elizabeth Warre and take your pick
19:04
on maybe on either side of the asle, I guess it seems like more
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on the left are against crypto. Do you agree with Doug Gainstler's view?
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I love it. You have the same lens. My opinion should not be
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driven by what I think, or what I like or what I dislike.
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It's what my responsibility is as a regulator and what we observe in markets.
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So again, we have this legal framework that defines commodities a certain way.
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We have these tokens that the way they're constructed fall within the commodity definition of
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the existing law. And we've seen these markets emerge, they've grown, they've
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scaled, they've gone up and down. But we've seen sustained interests by retail
19:42
investors. We've seen sustained interest by institutional investors and right now, unfortunately we've
19:48
seen sustained enforcement actions and that's my problem. Right My number one responsibility is
19:53
to protect investors, to protect the American economy. And when we see continued
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manipulationation and fraud in this market, When half of my enforcement docket is crypto
20:03
in an area that I don't have traditional regulatory tools, that is in my
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mind a huge red flag. Now, granted, most of the regulatory docket
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that he's dealing with is the fact there isn't regulation. So those are the
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kind of things. If regulation does fall into place, then what his problem
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will be is there won't be any crypto that falls into that because they'll have
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regulatory pathways. So that in itself is kind of a little bit alternative to
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what he's talking about. And he also said at the beginning of the comment
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there was that he didn't, you know, he wasn't doing this in the
20:36
way he feels. I don't think Genzler is doing it the way he feels.
20:38
He just thinks that this is the regulatory pathway because there's again nothing that
20:44
Congress at the end of the day, Congress is going to determine how this
20:48
gets regulated. And yes, you're going to have these agencies that will try
20:52
overreach. Yes, you will have Congress pushing back on this. But if
20:57
companies and especially in the currency space, start to see that there is a
21:02
pathway, you're going to have the good and the bad, and the good
21:04
is going to rise to the top. The bad will go the webpenny stocks
21:07
and many of the other assets out there that are looked upon, you know,
21:11
kind of negatively. So that's kind of where I think it's going to
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be. It really boils down to how you're going to vote. And by
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the way, we have something for you guys. We just started tracking our
21:21
crypto tracker. This is now available over in the MSI where we're navigating the
21:26
idea of sentiment based on the three top candidates. So you guys can find
21:30
us over on our website. Just go over there and you'll see it.
21:33
It's the Crypto Political Tracker tracking sentiment on all three candidates, so you can
21:37
kind of see it week by week, day by day, who's leading out,
21:41
Biden slipping up just a little bit, RFK dropping slightly in this last
21:45
couple of days. So check that out over there. And of course,
21:48
if you're not in the diamond circle. Make sure and do that right now.
21:51
It's a great place to get additional content. Also, by the way,
21:53
if you're not following me on X, do that right now. It's
21:56
APT Paul Baron. We'll catch you next time right here on tech Bath tumutiuti