Brace For Bitcoin Price Correction, Here's What's Next | iTrust CEO Kevin Maloney
Summary
TLDRIn this interview, Kevin Maloney, CEO of IT Trust Capital, discusses the recent Bitcoin rally, the role of Bitcoin ETFs, and the future of digital assets. He highlights the increased regulatory clarity, the prosecution of bad actors in the crypto space, and the growing acceptance of digital assets. Maloney also addresses concerns about the safety and transparency of digital asset custody, emphasizing the importance of qualified custodians and regulatory compliance. He shares insights on the potential for Bitcoin as a store of value and the rise of other blockchain platforms with utility tokens. The conversation touches on the impact of interest rates on the market and the company's plans for new products and services to enhance client experience and trust in the growing digital economy.
Takeaways
- đ Bitcoin's price has more than doubled since the last interview, with increased regulatory clarity and settlements affecting the market.
- đ The launch of Bitcoin ETFs has allowed large institutions to participate in the cryptocurrency market, leading to increased interest and investment.
- đ Google Trends show that although Bitcoin's price has reached new highs, public interest has not yet matched the levels of 2021.
- đč There is speculation that the recent Bitcoin rally may not be sustainable, and market corrections of 10-30% are expected.
- đ The halving event in April will reduce the rewards for miners, potentially affecting the supply dynamics of Bitcoin.
- đ° Companies are considering adding Bitcoin to their treasuries as a hedge against traditional financial instability.
- đ Interest rate changes, such as potential cuts by the Federal Reserve, could have a positive impact on Bitcoin and other assets.
- đ itust Capital is focused on providing transparency, client service, and regulatory compliance in the cryptocurrency investment space.
- đ ïž itust Capital is planning to launch new products and services over the next six months based on client feedback and demand.
- đ itust Capital emphasizes the importance of customer service and accessibility, differentiating themselves in the market.
- đ The concept of not co-mingling client funds and having a qualified custodian is crucial for safety and trust in cryptocurrency investments.
Q & A
What is the current state of regulatory clarity in the cryptocurrency market?
-There is more regulatory clarity now than there has been in the past. Settlements have transpired with entities like Ripple, and bad actors in the market are being prosecuted, leading to a weeding out of the 'gunslingers' of the Wild West era.
What role do ETFs play in the recent Bitcoin rally?
-Bitcoin ETFs have been a significant factor in the recent rally, as they allow large institutions to participate in the cryptocurrency market, leading to increased curiosity and awareness about digital assets.
How does Kevin Maloney view the sustainability of the current Bitcoin rally?
-Kevin Maloney believes that while the rally has been significant, it is unlikely to be sustainable indefinitely. He expects some pullback and then more traction, but advises against betting the farm, emphasizing a dollar-cost averaging approach.
What is the impact of the upcoming Bitcoin halving on its price and market dynamics?
-The Bitcoin halving, which reduces the mining rewards by half, is expected to change market dynamics by making the supply of Bitcoin more sparse over time. This could potentially lead to an increase in price due to scarcity, especially if demand continues to grow.
How does Kevin Maloney respond to critics who say Bitcoin has no intrinsic value because it doesn't generate yield or cash flow?
-Maloney argues that while Bitcoin may not generate yield like traditional assets, its value is determined by how many people are willing to accept it. He compares it to gold, which is also held as a store of value and doesn't generate cash flow.
What are some potential future use cases for Bitcoin beyond speculation and investing?
-While Bitcoin's primary use case is currently as a digital currency and store of value, its utility could evolve with the development of layer two and layer three technologies built on top of it. Additionally, Bitcoin's influence could extend to other blockchain platforms that are creating disruptive technologies.
What factors might lead to a correction in the Bitcoin market?
-Kevin Maloney suggests that historical patterns indicate new highs are often followed by pullbacks. He also mentions the Bitcoin halving event and changes in interest rates as factors that could influence market dynamics and potentially lead to a correction.
How does the interest in Bitcoin affect the overall stock market?
-Bitcoin's price movements have historically followed the NASDAQ to some extent, but recently, Bitcoin has shown more significant growth in a straight line, indicating that it's moving more for its own fundamental reasons rather than being influenced by the rest of the stock market.
What is the role of it trust Capital in the cryptocurrency market?
-it trust Capital provides a platform for individuals to invest in cryptocurrencies, including Bitcoin, through an IRA account. They offer a regulated and secure environment for trading and holding digital assets, with a focus on transparency and client service.
What are some of the new products and services it trust Capital is planning to launch?
-While specific details were not disclosed, it trust Capital is working on launching new products and services over the next six months based on feedback from their active client base. These offerings aim to enhance the user experience and meet the growing demand for various asset classes and investment options in the cryptocurrency space.
How does it trust Capital ensure the safety and security of client funds?
-it trust Capital works with a qualified custodian, a regulated entity that holds client cash and crypto assets separately from the company's own funds. They also undergo third-party audits, daily record checks with the custodian, and are developing a program for real-time spot checks by audit firms to ensure transparency and security.
Outlines
đ Market Developments and Regulatory Clarity
The paragraph discusses the state of the market and regulatory environment. It mentions a period of inactivity followed by increased regulatory clarity and settlements, such as those involving Ripple. The speaker notes that 'bad guys' are being prosecuted, and there is a sense of more clear guidelines on what is permissible. This has led to a wave of market activity that is benefiting participants. The conversation shifts to the sustainability of Bitcoin's rally and the launch of Bitcoin ETFs, with the CEO of IT Trust Capital, Kevin Maloney, joining the discussion to provide insights into new investment methods in Bitcoin.
đč Bitcoin ETFs and Institutional Demand
This section delves into the impact of Bitcoin ETFs on the market and the role of institutional investment. It highlights the curiosity and demand from large institutions following the ETF approvals, led by Black Rock and Fidelity. The speaker mentions that the digital asset exposure is becoming more acceptable, and there is a dormant factor at play. The discussion includes an analysis of Bitcoin's price performance compared to the NASDAQ, indicating that Bitcoin's rise is driven by its own fundamental reasons rather than following the stock market trends.
đ Global Factors and Bitcoin's Future
The paragraph addresses global factors such as interest rates, inflation, and debt, and their potential impact on Bitcoin's trajectory. The conversation touches on the upcoming Bitcoin halving event and its effect on miner rewards, emphasizing the capped supply of Bitcoin and its potential long-term value. The speaker also discusses the narrative that Bitcoin has no intrinsic value because it doesn't generate yield or cash flow, and counters this by comparing Bitcoin to gold and itsćšćŒ function.
đ Diversification and Bitcoin's Role in Portfolios
This part of the discussion focuses on the importance of diversification and the role Bitcoin can play in investment portfolios. The speaker advises against betting the farm on Bitcoin and highlights the potential for corrections in the market. The conversation also explores the upcoming Bitcoin halving and its implications for supply and demand dynamics. The speaker expresses a long-term optimistic view on Bitcoin's growth potential, comparing it to holding gold and emphasizing its ease of transfer and storage compared to physical assets.
đĄ Expanding Use Cases for Bitcoin and Other Cryptocurrencies
The paragraph explores the potential for Bitcoin and other cryptocurrencies to expand their use cases beyond speculation and investment. The speaker discusses the development of layer one and layer two platforms and the potential for these technologies to disrupt industries. The conversation also touches on the rise of other platforms like Ethereum, Solana, and Avalanche, and their programmable smart contracts. The speaker notes the importance of these platforms in building new technologies and compares owning a key patent to owning a critical platform in the blockchain space.
đŠ Corporate Treasury and Bitcoin Adoption
This section discusses the trend of companies adding Bitcoin to their treasuries and the potential advantages of doing so. The speaker mentions changes in accounting rules that now allow companies to report gains in the fair value of Bitcoin in their net income. The conversation explores the idea of Bitcoin as a hedge against cash management strategies and the potential for companies to allocate a percentage of their balance sheet to Bitcoin. The speaker also notes that while some companies may consider Bitcoin as a form of payment, it is more likely to serve as a store of value.
đȘ Market Forces and Bitcoin's Price Trajectory
The paragraph examines various market forces that could influence Bitcoin's price, including the upcoming Bitcoin halving and interest rates. The speaker anticipates a price pullback following the halving and discusses the potential impact of interest rate cuts by the Federal Reserve on Bitcoin and other assets. The conversation also touches on the relationship between Bitcoin and interest rates, with the speaker expressing uncertainty about a clear correlation but noting that a rate cut could be positive for the broader market.
đ Trust and Security in Cryptocurrency Platforms
This part of the discussion addresses concerns about trust and security in cryptocurrency platforms, particularly in the wake of the FTX collapse. The speaker emphasizes the importance of using a qualified custodian for holding client funds and the transparency and safety measures in place. The conversation also covers the company's commitment to regulatory compliance, client service, and plans for future product launches based on client feedback.
Mindmap
Keywords
đĄRegulatory Clarity
đĄBitcoin ETFs
đĄMarket Sentiment
đĄInstitutional Investment
đĄHalving
đĄStore of Value
đĄInterest Rates
đĄCryptocurrency Adoption
đĄDigital Assets
đĄClient Service
đĄQualified Custodian
Highlights
The interview discusses the recent rally in Bitcoin and the factors contributing to its price increase.
Kevin Maloney, CEO of it trust Capital, shares insights on Bitcoin ETFs and new investment methods in cryptocurrencies.
Regulatory clarity and settlements, such as those involving Ripple, have contributed to a more defined landscape for cryptocurrencies.
The prosecution of bad actors in the cryptocurrency space, like those from FTX, is helping to weed out the "Wild West" elements of the market.
Bitcoin's price has more than doubled since the last interview, raising questions about the sustainability of the rally.
The launch of Bitcoin ETFs has allowed large institutions to participate in the cryptocurrency market, increasing curiosity and awareness.
Despite Bitcoin's price reaching new highs, retail sentiment and general interest are not as high as they were in 2021.
Kevin Maloney suggests that most of the inflows into Bitcoin are institutional rather than retail.
The upcoming Bitcoin halving in April will reduce the rewards for miners, potentially affecting the dynamics of the market.
Bitcoin's capped supply at 21 million makes it a finite resource, which could enhance its value over time.
There is a discussion on whether Bitcoin is just a speculative asset or if it has intrinsic value due to its widespread acceptance.
The role of stablecoins as a form of payment is increasing, shifting from Bitcoin's previous dominance in B2B transactions.
Companies are considering adding Bitcoin to their treasuries as a hedge against potential market volatility.
The impact of interest rates on Bitcoin and the market's reaction to potential rate cuts by the Federal Reserve are discussed.
it trust Capital's platform is highlighted for its transparency, client service, and regulatory compliance.
The importance of a qualified custodian for holding crypto assets is emphasized for safety and regulatory reasons.
it trust Capital is working on launching new products and services based on client feedback and demand.
Kevin Maloney's personal investment strategy includes dollar-cost averaging over the next 90 days in response to the Bitcoin halving event.
Transcripts
we kind of sat here idle for a couple
years wondering what's next um we have a
little bit more regulatory Clarity we
have some settlements that transpired
with uh Ripple and and others um we have
more clarity on what to do and what not
to do bad guys are getting prosecuted I
think uh FTX uh prison sentences are
getting handed down today sure for for
Sam Bank Ben freed um and all of the
Gunslingers of the Wild Wild West uh
during that time frame are getting
weeded out uh and I so I think you have
this uh wave happening um right now that
we're all benefiting from if you're in
the market and ultimately we'll see
probably a little bit of pullback and
then we'll see uh some more traction
investors would like to know whether or
not this Bitcoin rally that we've seen
over the last few months is sustainable
indeed we've broken the previous
all-time high but it's failed to really
sustain above that level for a
considerable amount of time so what's
next is the question on everyone's Minds
uh helping us figure this out today is
Kevin Maloney he is the CEO of it trust
Capital we'll be talking about not just
the Bitcoin ETFs that have been launched
but also new ways to invest in Bitcoins
that you may not have previously thought
about Kevin welcome back to the show
it's good to have you back David good to
see you it's been uh I think since
November thanks for having us we uh our
last interview aired on November 3rd I
don't have to tell you that a lot has
happened to bitcoin since November 3rd
in fact um I can put the link to our
past discussion in the description down
below but Bitcoin was trading at exactly
$33,000 when we aired our last interview
it's now more than doubled the price so
my first question is tell us why is
rallied I mean the Bitcoin ETF is one
narrative we're all familiar with is
that it no I think there's other factors
that play David and by the way I went
and looked at my cost basis for Bitcoin
in my little I trust IRA account and
ironically it is exactly at my basis
33,000 so I don't know if I hung up and
bought some then or bought some before I
certainly don't I certainly don't make
recommendations but ironically my basis
is that the price on the day we spoke
but um I think there's a few factors at
play obviously we're all familiar with
the exchange traded funds the ETFs that
got approved uh obviously that's a big
major factor that allowed large
institutions to participate in the space
uh led by Black Rock and Fidelity of
course big names uh that's driving more
curiosity that's driving more awareness
it feels like more is just acceptable
more of the BTC digital asset exposure
is just getting to be more acceptable
and I think you have the dormant Factor
uh we kind of sat here idle for a couple
years wondering what's next um we have a
little bit more regulatory Clarity we
have some settlements that transpired
with ripple and and others um we have
more clarity on what to do and what not
to do bad guys are getting prosecuted I
think uh FTX uh prison sentences are
getting handed down today sure for for S
Bank Ben freed um and all of the
Gunslingers of the Wild Wild West uh
during that time frame are getting
weeded out uh and I so I think you have
this uh wave happening um right now that
we're all benefiting from if you're in
the market and ultimately we'll see
probably a little bit of pullback and
then we'll see uh some more traction so
I'm looking at the price chart um ever
since 2024 the uh NASDAQ is up uh around
8 and a half% 9% depending on exactly
which day you start Bitcoin is up
66.7% so 67% since the beginning of this
year Kevin and if you just take a look
at how the two um uh lines have have
have moved yes Bitcoin has more or less
followed the NASDAQ as it has
historically done but the NASDAQ has
climbed more or less in a you know in a
in a flatline whereas Bitcoin has really
shot up in a straight line and has
oscillated on its own which tells me
just by looking at the charts that it's
moved more or less for its own
fundamental reasons and not so much
followed the rest of the stock market
would you agree or disagree with what I
just said yeah I I agree with that I
think you have a lot more participation
I think a lot of people anticipated
approvals uh in that uh Q4 q1 time frame
for ETFs um there was a lot of pent up
demand standing by uh people were
certainly curious they wanted to
participate they allocated dollars they
felt safer doing it through the ETFs
which is a good uh it's a good entry um
into the market and uh this demand is is
playing out you also have the having
Factor coming up here in April that's
going to change Dynamics we have an
interest rate Factor uh that is going to
change Dynamics likely the second half
of this year and so I think all that
happening regardless of global conflict
and inflation and uh debt um things like
that happening around the globe and
domestically um people are interested
they're placing
dollars okay uh I want to come back to a
lot of the things that you mentioned
having interest rates cycle uh but first
let's talk more about uh this Bitcoin
ETF so if you were to look at uh first
of all if you if you go on Google Trends
before we talk about the ETFs themselves
if you go on Google Trends and you type
in the word Bitcoin or even crypto
worldwide the interest level is well it
has been climbing but it's still it's
still nowhere near its highs in 2021 so
if you take a look at the index level of
100 back in 2021 it's currently at
around 3530 which tells me that even
though the price has breached previous
all-time highs retail sentiment or at
least general interest in Bitcoin and
cryptos is not as high relative to two
years ago the previous all-time high
could it be possible that most of the
inflows into Bitcoin was institutional
and not retail this year um certainly
it's sort sort of part of my notes is
that um we the mass well ultimately the
institutional dollars that are flowing
in come from the working professionals
around the country right pension plans
and institutions that are managing
assets I mean there's there's some
obviously corporate dollars but yes I
think now the retail individuals through
the institutions are now having access
to this market and I think that that's a
phenomenal start being able to trade
through your ETF 32 hours a week is a
real exciting thing I think some people
will get sort of hooked on this uh this
they'll go beyond curiosity they'll feel
like they're in the game and then
they're going to get really curious and
figure out want to figure out how to
participate directly but yes and the
short answer is massive institutional
dollars flowing and I think we're
just we are just at the peak of the we
are just at the tip of the iceberg I
think there's a lot more dollars to flow
into the market to uh satisfy the
Curiosity satisfy the demand and by the
way you know you hit on some big numbers
up 66% this year Alone number one you
know one top performing asset class now
is that sustainable probably not is it
going going to go on forever absolutely
not should we bet the farm no uh we're
not making recommendations this is all
people making their own decisions but it
is exciting we sat dormant things are
turning around and I do think regardless
of where we are now even if you and I
are up a little bit on the BTC positions
we hold um there's always going to be a
correction I don't know if it's 10 to
30% but there's always going to be
Corrections well that's a very realistic
Viewpoint thank you for your honesty but
why do you think we're going to get a
correction I mean why aren't you a
Bitcoin di hard uh maximalist who thinks
it's just going to go up in a straight
line I I believe over time there's
massive opportunity for uh for you know
room for growth from here if you look at
the having factor which B basically uh
um the miners are going to get paid half
what they were getting paid for doing
the same amount of work starting mid to
late April right that's just a fact
there's 29 other
[Music]
fortunately BTC is capped at 21 million
right so Bitcoin is capped at 21 million
we will not issue any more than 21
million a lot of people may not
understand that some people say we can
just issue more shares like the
government prints dollars no it's capped
at 21 million also every four years and
I believe there's 29 ahead of us there
will be a having which means every time
there's a hash or another Block in the
chain a solution is provided and we add
another Block in the chain um you know
the Bitcoin miners are currently about
900 Bitcoin a day that's going to go to
450 so they're going to get half the
amount of Bitcoin for doing the same
amount of work right so we get a not
only do we have a capped finite amount
of Bitcoin available the supply the
availability of it gets more sparse as
well ultimately over time if the
curiosity is there and the dollars are
flowing in we're going to
see what I believe could be a really
phenomenal uh upside potential for this
asset now I'm talking over the next 10
years this thing yes I do believe it'll
continue to grow but every uh every
period we get a new high we do see
pullbacks I'm just looking at history
right I don't report the future I just
look at the history and um so that's
that's kind of a little bit of of my
thought process there well naysayers
would say that this is the biggest
bubble ever it was the biggest bubble
two years ago now it's you know now it's
once again the biggest bubble ever
primarily because Bitcoin doesn't do
anything it doesn't on its own generate
any yield or cash flow it has no utility
and therefore its intrinsic value is
zero this is an old narrative that we've
heard for several years but it's
obviously repopulating now as Bitcoin is
nearing $71,000 as we speak today how
would you respond to that you know don't
bet the farm um you know diversify your
Holdings uh there are some valid points
there however um I think this starts to
take the place not replace but just
starts to chip into to basically what
feels like holding gold right um some
people may hold gold um they like the
physical the touch the feel uh there's
value there I think this is uh something
that'll chip away at uh those that like
to hold gold as uh something that will
hold value the value is determined by
how many people are willing to accept it
right now globally there's a lot of
people willing to accept the value of
Bitcoin uh I don't think it becomes a an
international uh currency I think it is
a storage place for for assets and I
think it grows over time again it's
capped at a certain amount it's going to
become more finite every few years when
the having continues to occur 29 ahead
of us this is only our third I believe
coming up and uh so it's going to get
more difficult I think it's going to get
more expensive and I think it becomes
because it's tradable and I don't have
to store it in my trunk or my safe or in
the basement or under my bed um I think
it's just easier to move around and I
think the younger people and older
people that that are curious are
starting to participate and this is just
Bitcoin by the way now we know it's the
number one asset class in this space but
there are other platforms that are doing
phenomenal things that could disrupt you
know Industries uh from a blockchain
perspective as well but this one like
you said no utility no cash flow uh not
backed by assets uh I still think it's
attracted to millions of people as you
can see well Bitcoin is an asset how
could it evolve in its utility in other
words Beyond just speculation and
gambling and investing what other use
cas cases could there be for not just
the layer twos and layer 3es being built
on but the layer one itself well Bitcoin
alone I mean it's it's pretty limited
right there's not a lot you can program
from it it's it's it's set it and forget
it uh as far as the way it was designed
and built there's some phenomenal uh
features to it but right now it's a
digital it's a digital currency it's
something you can move around and store
and and uh people are betting on the
upside the other platforms layer one and
two for example by the way 30% of our
volume right now is Bitcoin most people
are transacting buying and selling in
Bitcoin in their self-directed IAS on
the itust platform however we've seing
salana for example uh we're seeing a lot
of coins uh some meme coins some utility
tokens be built off the salana platform
that's gaining traction last year when
we spoke it was about 5% of our volume
today it's 12 to 133% that's nearly
doubl avac also Avalanche um that there
there are lots of um you know protocols
and Foundations being built off those
platforms as well so from a true utility
perspective we think uh I think this is
just me speaking personally that there
are other things like ethereum and
salana and avac to look at as far as
true utility can't guarantee any upside
not saying go buy them now um but those
are really interesting from a program uh
a programmable um contract perspective
and I also look at how many coins are
being l launched what other things are
being built off other platforms it's
kind of like owning a patent if you own
a key patent out there how many people
are mentioning your patent and their
patent they need this technology to
bring their product to Market and right
now that's a key feature how many people
are mentioning other platforms that
they're building on and I see growth in
those other areas outside of Bitcoin of
course one thing that isn't talked about
as much is companies adding Bitcoins to
their treasuries is there an advantage
for companies to do that uh recently F
well a couple months ago fby changed her
accounting rul so that changes in fair
amount uh changes in the fair value of
Bitcoin can now be reported in your net
income um previously it was only uh cost
to impairment so basically if Bitcoin
goes down you have to you know note note
the impairment but you can't report uh
the gains in Fair Value but now you can
does that provide enough of an incentive
to for companies to start holding more
Bitcoin on the balance sheet I know it's
a great question I know a lot of
companies currently looking at there are
several that I know of that are are you
know dabbling and dollar cost averaging
and holding some crypto on the company's
balance sheet not comingling that with
client assets um there are a lot of
companies looking at that I think um
look if you're a long-term believer and
you believe this thing is going up like
real estate or equities over the LA over
the next five to 10 years there will be
hicups it will not be a straight line it
never is um I see a lot and I can
understand why companies would consider
adding uh a responsible amount they have
to figure out the percentage I don't
know if that's 1 to 10% exposure but
they companies need to figure out what
percent of the exposure they would want
on their balance sheet uh and it could
be a hedge right it could be a hedge
this thing May uh do a double or a
triple from here uh it could 10x it
could go back down to 15,000 we don't
know but some companies are looking at
it as a hedge uh to some of their uh
cash management strategies I see okay
but it's not a form of payment for some
of these companies I mean it could be I
I just noticed that over the last couple
of years um uh things like tether right
stable coins have become more popular as
a form of payment whereas be before the
Aven of stable coins Bitcoin was a
predominant method of B2B transactions
uh that's kind of shifted right so how
do you see that for you playing out no
look for us we don't currently have any
crypto on our balance sheet but it it
wouldn't be for payment strategy it
would be for as a hedge to some of the
uh things we're thinking about from a
business perspective um but yeah right
now I me look there's some stable coins
that might have potential issues when we
were having the banking issues last year
people thought uh you know one or two of
the stable coins might have some issues
and and could implode um right now
bitcoin's more widely accepted and
trusted as that as an asset that is
tradable and it is just storing uh value
right now but but do you see Bitcoin
having a future as a form of payment in
a world of you know stable coin
dominance in that field I mean certainly
we've seen countries adopt this El
Salvador has made a legal tender so you
could buy your coffee with Bitcoin I'm
not sure if you would want to but you
could so I mean is there a future for
Bitcoin I think uh there certainly could
be a future I think ultimately becomes
more of a store of a store of value look
if you if you look at Ray Doo's
principles and the 500-year cycles that
he's analyzed and who becomes the
predominant player and what currency
he's used and who controls the waterways
and mil strength the militaries there's
a lot of factors there it' be hard for
me to kind of predict that I know you're
not asking for Crystal ballet but look
it it can be transferred easily with
very little to no fees uh to make
payments to people right now I think
people are storing cash in the form of
crypto like they're doing gold as a
hedge and as an opportunity to ride the
wave if it continues to grow I do think
there will be some hiccups in the market
it's not going to be smooth sailing from
here that's why we always say don't bet
the farm it's it's all up to the
individual and the risk they want to
take but um it's not going away it is
very interesting the use cases for the
other um uh utility tokens are becoming
quite compelling and the amount of
people building off these other large
platforms some of the other names I
mentioned those aren't recommendations
but those are just what I'm seeing in
the news uh is is really interesting um
and so we're watching carefully um we're
we're just uh we're not necessarily a
market participant we are a market uh we
are enabling people to participate in in
the blockchain economy if there's
interest I do want to talk about it
trust uh and what exactly you do in just
a minute but first let's go back to a
few of the market uh forces that you
mentioned uh previously that we haven't
addressed yet so having we talked you
mentioned having what do you anticipate
is going to happen post having let let
let me rephrase that question do you
think um the price of Bitcoin is already
baked is already factoring in having in
other words you know the event yeah
short answer yes I do think it is uh
sort of baked in just like we saw runup
before the ETFs I think that was there
was some baked in pricing there um you
get a little bit of runup there's a lot
of speculation anticipation and then it
happens and people take a breath they
exhale and it comes back a little bit
okay I'm in now what right okay well
who's going to drive the next wave um I
do think the price is is baked in right
now for having I do not think it's going
to double quickly from here uh I think
we might even see a pullback of you know
EXC excuse me um 5 to
15% um so that's just my own conjecture
uh you know and I don't know what time
frame I think we we will pull back and
if it does pull back I I selfishly hope
it does a little bit I'd like to put a
little bit more in myself uh in that I
wish I your dollar cost average is going
to be higher after this interview hey
it's going to be like $45,000 or
something like that yeah it's gonna
Crush my basis last time we talked I B
Bitcoin uh you know um
uh soon thereafter at at the around the
price we talked in November and yeah I
didn't have a ton of exposure I still
don't um but but I'm in because I'm
curious and interested and I want to be
part of um this this uh part of the
story and the journey at least you're
price at least you're somewhat price
sensitive I've heard I've interviewed a
lot of people in the Bitcoin space I've
heard this before from several people I
don't care what the price of Bitcoin is
I'll buy it at any level $10 $10,000
$100,000 because Bitcoin is going to 10
million one day so what does it matter
if I'm buying it at $10,000 or $100,000
right I've heard that narrative before
yeah yeah no look I mean uh there are
some DieHard fanaticals out there and uh
more power to them they might be driving
a little bit of the market I I'm more of
a you know I traditional Finance
background I'm more of a dollar cost
averaging guy don't bet the farm dip
your toe in the water if you get a
pullback and you're excited and you have
capital and it's getting allocated to
higher risk speculative um things like
this
then yeah I mean it could make sense um
you know I I I I don't hope it drops
below 33,000 so that I can get in there
but I I do think we're going to
constantly see some run-ups some
pullbacks and then there's other factors
that we're going to hit on you know in
this conversation that that will drive
some things that beyond our control you
mentioned interest rates that's the
other that's the other factor is there a
relationship a clear relationship
between Bitcoin and interest rates n not
that people I mean you know people say
there's an there was at one point
contan viewpoints and and there was an
inverse relationship between interest
rates and Bitcoin and the markets in
Bitcoin I don't know there's there's uh
you look at the correlation it's it's
it's things are getting a little bit
more correlated it it seems well
generally speaking of the FED pivots
which people expect them to do which is
to say the cut rates later this year
would that be a positive or A negative
for Bitcoin I think ultimately it
becomes a positive for for you know
assets across the board I don't think
it's just Bitcoin okay um I
certainly they plan to you know again no
guarantees but they they certainly plan
to look at making a couple cuts this
year and I I think that helps things uh
Along The Narrative of okay maybe we are
coming out of this inflation in a good
place uh you know things like that and
people will feel more comfortable about
putting there's still a lot of cash on
the sidelines right there's still people
that don't believe or understand any
digital assets and uh but you know there
are some factors that I think will
continue to contribute even if I'm wrong
even if we don't get a pullback as
institutions as we get more regulatory
Clarity people are more compliant
they're more transparent it feels like
um uh safer to participate not in the
asset class meaning it's not going to go
down but the the Gateway the individual
company that getting me there isn't
going to um you know um you know uh do
anything nefarious dollars are going to
flow in okay uh ETF inflows continue to
Skyrocket just one example this today on
the 28th of March ar21 shares BT Bitcoin
ETF hits 200 million daily inflows for
the first time um as Bitcoin t $772,000
a coin uh why ETFs first of all I mean
what what what does an ETF provide as an
investment vehicle that the spot
cannot okay well yeah I mean that's a
big number um you know uh Black Rock and
and Fidelity this week um gosh uh they
kind of swapped places Fidelity was
number one for a while they brought in
200 million on Monday and Tuesday uh
Fidelity brought in 54.9 million so
massive inflows why is that happening I
think the general public is getting more
the the Curious people that were already
curious and standing by are starting to
participate the ETFs obviously um not a
guarantee in performance at all but the
ETFs are regulated are are offered
through a regulated you know Financial
entity and that all feels safer as well
uh now there's multiple fees and and and
things like that you have to understand
sort of what the fee structures are but
um ultimately um you know um grayscale
fees uh were a little bit higher dollars
flew into a little bit to chase lower
fee structured
items you know you got the fee Factor
you got the competition Factor you got
the fact that it's a regulated identity
uh approved by the SEC meaning they
don't approve and are not recommending
the asset class but it's available now
in a regulated exchange and that just
feels uh more compliant it feels like
it's a little bit safer it feels like
the bad guys aren't going to take my
money I think from here it grows and now
while people are dipping their tow in
the water and getting exposure through
billions of dollars a week through the
top 10 11 players that were approved in
January I think the the fanaticals are
already directly invested I think the
people through um that are curiously
participating placing a few dollars
because they want to be part of the
story are going to want eventually
direct access the ETFs are great they're
regulated they're their entities but
they're going to want direct access at
some point they're going to open up an
account with an exchange or an IRA
platform like ours and buy direct and at
some point they're going to want to say
wow this thing moves a lot around the
clock they may wake up at 2: in the
morning see some big growth making a a
trade in their IRA account uh depending
on your you know your situation there
may be tax advantages to doing that uh I
mean imagine going direct and trading on
a Sunday afternoon while people are
watching an MLB baseball game or a golf
tournament right you can't do that
through the ETFs it's not a slide
against them it's a great start it's a
gateway to get people into digital
assets I think they're going to want to
own BTC direct then I think they're
going to want to look at other other
things probably not as many as the mean
coins but they're going to want to
participate there as well okay well tell
us about uh itust but more generally
speaking why do we need an IRA what's
why can't they just put my Bitcoin in a
wallet and leave it alone to our
retire yeah so you can you can buy
direct through some exchanges like you
know coinbase Kraken crypto.com
um you name it there's a few out there
that you can buy direct you can you can
open up a wallet fund it with your bank
account some credit card I believe and
you can buy direct through those
exchanges we are not an exchange we're a
soft platform we work with liquidity
providers we work with a qualified
custodian uh which is a regulated entity
that custodies your cash and crypto
assets that's important because it means
itust Capital does not ever touch or
hold your crypto or cash it's never on
our balance sheet it's never comingled
with our own cash that we pay our bills
with it is separate in their name FBO
for the benefit of the client uh at
these custodians these qualified
custodians that's really important we
want to we're launching other products
and services with that qualified
custodian wrapper you get transparency
you get access to information you get
access to our client service team and
you get access to open up an account for
your IRA an individual retirement
account for the working professionals
Across America that means depending on
your situation there may be some tax
advantages to owning digital assets in
your IRA and long-term if we get some
upside there's tax benefit and if you
buy and sell and trade within your uh
IRA account it's also um depending on
your situation there are tax benefits
and so that's that's you know it trust
Capital we've been around five years
we've got 200,000 people that have
signed up on our platform over 51,000
are are active and and and uh you know
put in traded nearly n billion dollar
and uh we've got uh several billion
dollars on the platform again we're the
software platform we're the dashboard
and we work with all of the regul
regulated entities the institutional
storage providers that store your crypto
the FDIC insured banks that store the
crypto uh that store the cash and the
liquidity providers that exchange the
cash and execute the trade to get your
your crypto in your account um so it's
something we innovated on um five years
ago we're leading the industry on
transparency uh and we also pride
ourselves on client service when you
call us we pick up the phone and there's
a big difference there here's a comment
left on our last video when you came on
the show in late October it says and
like your addresses why would I trust a
company that won't let me hold a set of
keys to my BTC I don't trust can you
address that yeah sure and there are a
lot of people that are you know not my
keys not my crypto they want to own the
keys and they own the crypto and those
people absolutely have that option
through other uh entities we work with
bit
and uh fire blocks and we have uh
multiple firms that help us back up the
keys to these exchanges so if anything
happens to it trust if anything happens
to the custodian there are multiple ways
to get these keys I don't have anybody's
keys they hold basically when they log
in one piece the another entity holds
another piece they get matched up and
people get access but it's not it's not
FDIC secured I'm guessing like let's say
the company goes under and people still
get their Bitcoins
yes if if for example our qualified
custodian the regulated trust company
that is the cust the custodian of record
if for example they imploded they went
down they went into receivership even if
we imploded we went down we went into
bankruptcy the state steps in The
Regulators step in and look at the
subledger account and David Lynn Kevin
Maloney have this much Bitcoin in
storage at this facility and it is all
accounted for we reconcile every day we
don't take any of your crypto our
client's crypto my crypto co-mingle it
uh with anything corporate it's all held
separate subledger in their name so if
anything happened to it trust great
question or the qualified custodian like
I said State steps in and says this is
your cash this is your crypto we like
that approach if you're doing it by the
book and you're uh compliant and
transparent and um you know it's it's
it's what we think it's what we spoke to
the commissioner about Hester Pur
visited our office sec commissioner back
in February at our
invitation um to talk about transparency
ethics you know access client service
safety security peace of mind we covered
all those topics and um we would like to
see more of this approach happen
qualified custodian regulated Financial
entity rapper around individual assets
held either in cash or crypto uh in
taxable or non-t taxable accounts so
that if anybody is nefarious or does
anything wrong uh or the companies
disappear State steps in and your assets
are spoken for that's really key A lot
of people don't realize that if you lose
your own key or or uh access uh in your
safe for your if it's not in your safe
for your safety deposit box look that's
a one-time deal you can't get back in um
I don't we don't want to risk that for
our clients yeah well you mentioned you
don't co-mingle your client's funds with
other use cases that are not just C you
know custody your clients's funds uh the
question everybody has now that after
that the FTX tobac go is how do we know
how do we know that these funds have
been audited or that there's a pop
Ledger or you know some sort of
accounting system that we can trust yeah
um so number one um audited by uh third
parties which is key uh number two we um
check our records daily with the records
of the qualified custodian we make sure
that our qualified custodian record our
qualified custodian has our records
reflecting what our clients hold on
their dashboard and we have viewing
access to make sure theirs uh as
well on top of that we've been in
discussions and we are launching a
program that will offer more
transparency and access so that in the
future we can work with uh an audit firm
to log in at any time and spot check our
crypto and our wallets or our bank
accounts only viewing access to confirm
the cash and the crypto match what our
clients believe they have on their
dashboard to my knowledge there's not a
lot of people if anyone doing this at
that at that scale now an annual audit
is great a quarterly audit is great but
you can change stuff the next day we
know that we want an audit firm to work
with us powered by such and such audit
firm verified by such and such audit
firm we want them to know that we have
nothing to hide we're fully transparent
that they can log in and see the cash or
crypto can't buy sell trade or move it
but they can see and verify A and B uh
dashboard versus uh what's what's
actually available in the bank or in our
fire blocks wallets that's really key
and we're working on the ability to do
that uh not because it's recommended or
mandated we want to do that because a no
one else is and B we think people will
appreciate that uh because C given what
we've gone through the last two years
the various activity Gunslingers Wild
Wild West um there will always be bad
players in any Market let's be clear
a lot of it's been weeded out we're
going to see some strict sentences
handed down to people um those are
always deterrence for a short time
people then forget get greedy again but
ultimately we're a bunch of boring
traditional Finance guys uh my
background is a compliance officer at
Pimco you know look I started with rules
and regulations it'll always be part of
our story and we spend Millions trying
to get it right so we're not going to
cut Corners um but it doesn't matter
what I say the Auditors that we want to
partner with will verify position I for
us at our request how how many coins are
currently being offered on our trust uh
right now I believe we have about 35 uh
obviously that's led by Bitcoin and
ethereum those are the majority and then
we have a couple of utility tokens like
I mentioned the analogy of that are
getting mentioned as uh being used in
lots of other patents and Technologies
right so that's that's sometimes the
value of a patent can be termined by how
many times it's mentioned in another
patent an analogy yeah what's next for
the company any developments we should
be aware of yeah we're looking at uh
launching some what we think are some
exciting products and services uh over
the next six months stay tuned I'm not
naming the names of those or or what
what those can do for the clients but
we've done some surveys we do a couple
surveys a year with our uh 50,000 active
clients and overwhelmingly people are uh
encouraged and um encouraging us to
launch additional products and services
the beauty of having a big active base
uh is we can engage them and say what do
you like what do you not like what
should we be thinking about what other
coins can we add what other asset
classes are you interested in and we
look carefully and we try to iterate
quickly based on that feedback after we
make sure that it's legal compliant and
the structure makes sense so we're
evaluating some good products and
services um also on the future just one
more thought is the client service side
we've expanded our group we've hired 25
new people this year alone just to take
on the demand for client service why
well it just feels more comfortable when
a company picks up the phone uh after uh
um a short wait in the queue to SP speak
to a voice in the US about my crypto and
if you're new or curious and you're a
working professional like me age 40 to
60 and you want to participate with a
company and you're thinking about giving
them a small percentage of your
retirement or allocating some toward WS
crypto go with a company that is
transparent go with a company that will
pick up the phone and or Andor respond
to your email we're taking thousands of
calls and emails weekly we pick up the
phone with a smile we're available to
answer questions we're not here to sell
recommend anything we don't have any
sales Consultants we don't pay
commissions to our people we're here to
listen and solve problems and give
access and I think that is a
differentiator that's been benefiting
the company when you give good client
service and you don't overcharge and you
give people access and you give people
transparency and you give people access
to Educational Tools and you're acting
in a compliant manner for example
inviting the SEC commissioner into your
office we're not even regulated by them
but we had really good healthy
productive conversations about what
what's on their radar what we can do to
help them what they can do to help us
and what we're doing that can just push
forward uh to set an example in the
industry we're one of the bigger players
out there and so we need to set a good
example of doing the right thing
so you know that and a good qualified
custodian partner the Trust Company of
of record is key that is the business if
you get those right you can build a nice
little business that we believe will
continue to grow over time but the key
is the clients the clients need access
and they want to feel safe and secure
okay well you can learn more about itust
Capital down in the link below I'll put
the uh uh link where you can find out
more information thank you very much
Kevin we'll speak again soon when
there's uh when there's an update on
either itrust or the markets
David good to see you it's been since
November the first time and we'll see in
the next six months uh do we double from
here or is it half I don't know
um final question for you um you don't
have to answer it are you buying more
Bitcoin as soon as this interview
ends as soon as which which happens as
soon as this interview ends are you
gonna go buy more
Bitcoin I'm going to uh dollar cost
average in next over the next 90 days
because I don't know what's going to
happen after the having I am going to
continue to buy some more but of course
for everyone out there not betting the
farm oh absolutely right thank you very
much Kevin see you soon thank you David
good to see you have a good day yeah and
thank you for watching don't forget to
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