Brace For Bitcoin Price Correction, Here's What's Next | iTrust CEO Kevin Maloney

Summary

In 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

• 📈 Bitcoin's price has more than doubled since the last interview, with increased regulatory clarity and settlements affecting the market.
• 🚀 The launch of Bitcoin ETFs has allowed large institutions to participate in the cryptocurrency market, leading to increased interest and investment.
• 🌐 Google Trends show that although Bitcoin's price has reached new highs, public interest has not yet matched the levels of 2021.
• 💹 There is speculation that the recent Bitcoin rally may not be sustainable, and market corrections of 10-30% are expected.
• 🔄 The halving event in April will reduce the rewards for miners, potentially affecting the supply dynamics of Bitcoin.
• 💰 Companies are considering adding Bitcoin to their treasuries as a hedge against traditional financial instability.
• 📊 Interest rate changes, such as potential cuts by the Federal Reserve, could have a positive impact on Bitcoin and other assets.
• 🔐 itust Capital is focused on providing transparency, client service, and regulatory compliance in the cryptocurrency investment space.
• 🛠️ itust Capital is planning to launch new products and services over the next six months based on client feedback and demand.
• 📞 itust Capital emphasizes the importance of customer service and accessibility, differentiating themselves in the market.
• 🔑 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

00:00

📈 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.

05:01

💹 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.

10:01

🌐 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 its储值 function.

15:02

🚀 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.

20:03

💡 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.

25:03

🏦 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.

30:05

🌪 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.

35:06

🔐 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.

Keywords

💡Regulatory Clarity

Regulatory Clarity refers to the clear and precise rules and guidelines provided by regulatory bodies that govern the actions of entities in a particular sector, such as the cryptocurrency market. In the context of the video, it signifies the increased understanding and establishment of rules that help market participants, including Ripple and others, navigate their operations without ambiguity. This is crucial for the growth and stability of the cryptocurrency market, as it provides a level playing field and reduces the risk of legal repercussions for compliant entities.

💡Bitcoin ETFs

Bitcoin ETFs, or Exchange-Traded Funds, are financial products that track the price of Bitcoin and are traded on traditional stock exchanges, similar to shares of a company. They allow investors to gain exposure to the cryptocurrency without actually owning or storing the digital asset. In the video, the launch of Bitcoin ETFs is highlighted as a significant factor contributing to the increased interest and investment in Bitcoin, as it provides a more accessible and regulated entry point for institutional and retail investors.

💡Market Sentiment

Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It reflects the prevailing mood, which can be optimistic (bullish) or pessimistic (bearish), and can influence investment decisions and market trends. In the video, the discussion around Bitcoin's price movement and the general interest in cryptocurrencies suggests that market sentiment plays a crucial role in driving the demand and price of digital assets.

💡Institutional Investment

Institutional investment refers to the purchase of financial assets, such as stocks or cryptocurrencies, by large organizations like pension funds, insurance companies, and mutual funds. These entities typically manage large pools of money on behalf of their clients or members. In the context of the video, institutional investment is highlighted as a significant driver of Bitcoin's price rally, with the implication that large, organized money is flowing into the cryptocurrency market, indicating a growing acceptance and interest in digital assets among traditional financial players.

💡Halving

Halving is an event in the Bitcoin network that occurs approximately every four years, reducing the reward given to miners for validating transactions and adding new blocks to the blockchain by 50%. This mechanism is designed to control the supply of Bitcoin and mimic the scarcity of precious metals. The halving event has significant implications for the Bitcoin market, as it reduces the rate of new Bitcoin creation, potentially leading to increased price pressure if demand remains constant or grows.

💡Store of Value

A store of value is a type of asset that can be preserved and retained without significantly losing its value over time. It is often used as a medium for saving and is typically associated with assets like gold or, in the context of the video, Bitcoin. In the digital asset space, Bitcoin is increasingly seen as a digital alternative to traditional stores of value, due to its limited supply and the perception that it can retain value amidst economic uncertainty.

💡Interest Rates

Interest rates are the cost of borrowing money or the return on investment for savings. They are determined by a country's central bank and can significantly influence economic decisions, including investment in financial assets. In the context of the video, the speaker discusses the potential impact of interest rates on Bitcoin and the broader financial market, suggesting that changes in interest rates can affect investor behavior and asset prices.

💡Cryptocurrency Adoption

Cryptocurrency adoption refers to the process by which digital currencies like Bitcoin are increasingly accepted and used by individuals, businesses, and governments for transactions, investments, and as a store of value. This adoption can be driven by various factors, including technological advancements, regulatory clarity, and the growing perception of cryptocurrencies as legitimate financial assets.

💡Digital Assets

Digital assets are any form of assets that exist and are stored as digital data on electronic devices or online platforms. This can include cryptocurrencies, digital art, virtual real estate, and other types of electronic files that have value. In the context of the video, digital assets primarily refer to cryptocurrencies like Bitcoin and Ethereum, which are being increasingly recognized and utilized within the financial system.

💡Client Service

Client service refers to the assistance and support provided to customers by a company or organization. It encompasses everything from answering queries and providing information to solving problems and ensuring customer satisfaction. In the context of the video, client service is emphasized as a differentiating factor for it trust Capital, with a focus on being transparent, responsive, and educational to build trust and provide a positive experience for clients interested in cryptocurrency investments.

💡Qualified Custodian

A qualified custodian is a regulated entity that holds and safeguards customers' assets, such as cash and cryptocurrencies, in accordance with specific rules and regulations. In the context of the video, a qualified custodian is essential for ensuring the security and proper management of clients' digital assets, providing an additional layer of protection and regulatory compliance.

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

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