The Arrival of Bitcoin ETFs with James Seyffart & Alex Thorn - WBD760
Mr Obnoxious
Peter McCormack
4.8 • 2.7K Ratings
🗓️ 13 January 2024
⏱️ 77 minutes
🧾️ Download transcript
Summary
James Seyffart is an analyst for Bloomberg Intelligence covering ETFs, and Alex Thorn is the Head of Firmwide Research at Galaxy. In this interview, we explore the implications of the recently launched Bitcoin ETFs. We delve into the mechanics of ETF trading, analyse how ETFs might reduce Bitcoin's volatility, and speculate on the future introduction of Ethereum ETFs and their potential effects.
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There’s an old joke about waiting ages for a bus only for three to finally arrive at once. Well, after a decade of submissions, arguments and delays, 11 Bitcoin spot ETFs were given the green light by the SEC on Wednesday 10th January, then launched onto the market on Thursday 11th January where they attracted $4.6 billion in investment. This broke records for ETF investment. I have had the chance to speak to Alex Thorn and James Seyffart about this seismic event.
But what exactly are Bitcoin ETFs, and how do they function? In essence, these financial instruments allow investors to buy and sell shares that represent a certain amount of Bitcoin, so individuals can invest in Bitcoin without the complexities of directly buying, storing, and securing the asset. The value of each share is pegged to a fraction of a Bitcoin, making it more accessible to retail traders and opening the door for a broader audience to participate in the Bitcoin market.
One of the most intriguing aspects of Bitcoin ETFs is their potential to dampen the volatility of Bitcoin's spot market. A substantial portion of Bitcoin will now be held in advisor accounts, which are not prone to frequent trading. This shift could lead to more stability in the market, as Bitcoin is placed in "stronger hands." Bitcoin ETFs might also alter the pattern of surges in altcoin prices, as Bitcoin becomes less readily available for quick trades into other cryptocurrencies.
The revolutionary nature of Bitcoin and its potential to empower individuals cannot be overstated. We reflected on the need for broader support from institutions and investors to unlock Bitcoin's full potential. Regulatory challenges, such as proposed AML legislation, pose significant hurdles that could impact competitiveness, market growth and restrictions on Bitcoin's use. It's crucial therefore for ETF issuers to promote the true value of Bitcoin and oppose restrictive legislation.
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Show notes: https://www.whatbitcoindid.com/podcast/the-arrival-of-bitcoin-etfs
This episode’s sponsors:
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Transcript
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| 0:00.0 | You're in the game now like this thing isn't valuable if it's not able to be used in a self-custody manner. |
| 0:05.8 | That's the innovation. That's the core innovation. |
| 0:07.8 | We and the issuers we got to take the story of Bitcoin's true value out. That's how they're going to do it's how they're marketing it |
| 0:13.3 | we got to tell that story. Hello there from New York City I'm here with your boy |
| 0:17.8 | Danny we've been here for a few days making shows we've out see tall last |
| 0:21.8 | night with Surfergin, Madison Square Gardens, and we've been spending a lot of time at Pupke. |
| 0:26.4 | If you ever in New York, come and check out Pupke. What Thomas is doing here is incredible. |
| 0:30.0 | It's a great Bitcoin community he's building. |
| 0:32.8 | Anyway, welcome to the What Bitcoin did podcast, |
| 0:34.9 | which is brought you by the Legends of Iris Energy, |
| 0:37.0 | the largest NASDAQ listed Bitcoin miner |
| 0:38.8 | using 100% renewable energy. |
| 0:41.1 | I'm your host, Peter McCormack, |
| 0:42.3 | and today we've got our E.T.F. show. |
| 0:44.6 | Yes, with all the E.T. F. C. C. C. C. C. C. C. C. C. |
| 0:48.9 | Our show. And we also got in Alex Thorne from Galaxy and you know what we covered everything |
| 0:54.4 | everything from the first day inflows to the mechanics of how they worked to |
| 0:58.2 | all the craziness that went on with Gensler and the stupid announcements I think we |
| 1:02.0 | will find that kind of funny. But yes, everything ETF is covered in this show. |
| 1:05.7 | And listen, we're off to Nashville tomorrow. We're off for the Mining Summit. We're going to be there for a week. |
| 1:09.9 | Hopefully we're going to see somebody down at Bitcoin Park. Come and hang out with me and Danny. |
| 1:13.6 | Come talk about Bitcoin. |
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