Bloomberg Crypto 05/28/2024

Summary

The Bloomberg Crypto segment discusses recent developments in the cryptocurrency market, highlighting the SEC's approval for the launch of Ethereum ETFs in the U.S. and the London Stock Exchange's introduction of Bitcoin and Ether exchange-traded notes. Ophelia Snyder from 21 Shares shares insights on the global momentum for crypto as an asset class, while Catherine Dowling from Bitwise provides an update on regulatory conversations and the political climate's impact on crypto regulations. The show also touches on the House's passage of a digital asset infrastructure bill and its uncertain future in the Senate.

Takeaways

• 🌐 Bloomberg World is temporarily operating from New York while undergoing changes elsewhere.
• 🔑 The U.S. Securities and Exchange Commission (SEC) has paved the way for the potential launch of Ether ETFs, marking a significant shift from its previous stance.
• 📈 Ether experienced a surge of about 3% following the SEC's decision and had its best week in over three years, jumping approximately 25%.
• 💼 The London Stock Exchange introduced stock exchange notes related to Bitcoin and Ether, available only for professional investors.
• 🤔 The timeline for the full approval and listing of Ether ETFs in the U.S. remains uncertain, as the SEC has no set deadline for the next steps.
• 🏛️ The U.S. House of Representatives passed a bill establishing a crypto regulatory framework, although its prospects in the Senate are considered slim.
• 💡 The crypto industry has been growing its influence in Washington, with lobbying efforts becoming more professional and organized.
• 🔍 The Biden administration's stance on crypto has softened, with indications of a willingness to work with the crypto industry, unlike previous threats of veto.
• 🔑 The Republican party has historically been more crypto-friendly, advocating for keeping crypto businesses onshore for economic and national security reasons.
• 📊 Ether has seen significant volatility and growth this year, nearing 70%, but has not yet surpassed its 2021 highs.
• 🐕 The Doge meme, which was once the face of a cryptocurrency worth nearly $90 billion at its peak, has reportedly passed away.

Q & A

What is the significance of the SEC's recent actions for Ether?

The SEC's recent actions have paved the way for the eventual launch of investing directly in Ether through ETFs, marking a significant shift in the regulatory landscape for cryptocurrencies.

How did the SEC's stance on Ether differ from a couple of weeks ago?

A couple of weeks ago, the SEC's stance on Ether was less clear and seemed less favorable towards its approval. However, recent actions by the SEC have shown an about-face, indicating a more open approach to Ether investment products.

Which companies are among the approved issuers for the Bitcoin and Ether debut?

The Wisdom Tree and Invesco are among the approved issuers for the Bitcoin and Ether debut, with 21 Shares also being mentioned as a key player in the development of U.S. Ether ETFs.

What is the current status of Ether's price following the SEC's actions?

Ether's price has surged, with an increase of about 3%, following the SEC's actions that signified a move towards approving products tied to Ether.

What is the situation with Bitcoin's price movement mentioned in the script?

Bitcoin's price is noted to have moved 2% on the day, influenced by news related to the Mt. Gox exchange, which was once the largest Bitcoin exchange and is now involved in efforts to return $9 billion of Bitcoin to creditors.

What was the impact of the SEC's actions on Ether's weekly performance?

The SEC's actions last week resulted in Ether having its best week in more than three years, with a jump of about 25%, marking the best performance since 2021.

What is the difference in implied volatility between Bitcoin and Ether?

The implied volatility of Ether is significantly higher than that of Bitcoin, indicating that Ether is expected to have much bigger swings in the coming months compared to Bitcoin.

How has Ether performed year-to-date compared to Bitcoin?

Year-to-date, Ether has outperformed Bitcoin, with Ether being close to a 70% increase, while Bitcoin made new records earlier in the year but has not surpassed its 2021 highs.

What is the London Stock Exchange's recent move related to Bitcoin and Ether?

The London Stock Exchange has issued a batch of stock exchange notes related to Bitcoin and Ether, which are available only for professional investors.

What is the regulatory process for Ether ETFs according to the SEC?

For Ether ETFs to begin trading on exchanges, the SEC must sign off on two separate filings: the 19b-4 forms and the S1, which is a prospectus filing containing all information about the fund and risk disclosures.

What is the difference in the approval process between Bitcoin ETFs and the current Ether ETFs?

With Bitcoin ETFs, regulators signed off on both required forms at the same time, allowing the funds to start trading immediately after approval. However, for Ether ETFs, the SEC's approval of the 19b-4 forms is necessary but not sufficient, and the S1 must also be approved without a set deadline.

What is the potential impact of the U.S. presidential election on the regulatory environment for cryptocurrencies?

The U.S. presidential election could influence the regulatory environment for cryptocurrencies, as both candidates may take stances that could either support or hinder the growth and acceptance of cryptocurrencies, depending on their policies and voter appeal.

What is the current status of the bill establishing a crypto regulatory framework?

The bill has passed in the House with bipartisan support but faces tough odds in the Senate and opposition from the White House, which argues that the bill is too friendly to the industry.

What is the role of crypto lobbying in Washington and how has it evolved?

Crypto lobbying in Washington has become more professionalized, with in-house lobbyists and trade associations advocating for the industry in a more formalized manner. The influence of crypto voters, who consider cryptocurrency an important factor in their voting decisions, has also contributed to increased support in Congress.

Outlines

00:00

🚀 Cryptocurrency Regulatory Developments and Ether's Market Response

The script opens with Katie Greifeld discussing the temporary setup at Bloomberg's New York headquarters and hints at upcoming surprises. It then shifts to the significant development that the U.S. Securities and Exchange Commission (SEC) has paved the way for the potential launch of Ether ETFs, a stark contrast to the situation a few weeks prior. The script mentions the approval of two Bitcoin and Ether funds by the SEC, with Wisdom Tree and Invesco among the approved issuers. The market snapshot reveals that Ether has surged by about 3% following the SEC's actions, and Bitcoin shows a 2% movement influenced by news related to the 2011 hack of Mt. Gox, once the largest Bitcoin exchange. The discussion also touches on the significant increase in Ether's value, its volatility compared to Bitcoin, and the London Stock Exchange's introduction of stock exchange notes related to Bitcoin and Ether.

05:06

📊 Ether ETFs and the SEC's Conditional Approval Process

Emily Graffeo provides insight into the SEC's approval process for Ether ETFs, clarifying that while one filing has been approved, the SEC must also sign off on a second, more detailed S-1 filing before trading can commence. The timeline for this approval is uncertain, which contrasts with the simultaneous approval of both filings for Bitcoin ETFs a few months prior. The conversation highlights the variability in preparedness among issuers and the potential for a staggered approval process. Additionally, the script discusses the London Stock Exchange's debut of exchange-traded notes for Bitcoin and Ether, available only to professional investors, and the expected impact on market flows.

10:08

🌐 Global Momentum for Cryptocurrency and Its Integration into Mainstream Finance

Ophelia Snyder from 21 Shares discusses the global momentum surrounding cryptocurrency as an asset class, particularly following the SEC's actions on spot Ether ETF applications and the London Stock Exchange's introduction of Bitcoin and Ether exchange-traded notes. She emphasizes the significance of these developments and their alignment with the company's mission to make cryptocurrency accessible. Snyder also reflects on the personal aspect of cryptocurrency investment, sharing her mother's early involvement in the space and advocating for its place in multigenerational financial planning.

15:10

🔍 Political Influences on Cryptocurrency Regulation and the U.S. Election Factor

Catherine Dowling, Chief Compliance Officer from Bitwise, delves into the political dynamics influencing the recent turnaround in the U.S. regarding spot Ether ETFs. She suggests that the upcoming presidential election and the candidates' stances on cryptocurrency could play a role in shaping regulatory decisions. Dowling also comments on the bipartisan movement in Congress towards establishing a clear market structure for digital assets, emphasizing the need for a legislative solution to bridge the regulatory gap between commodities and securities.

20:10

🏛 The Future of Cryptocurrency Legislation and Industry Lobbying Efforts

The script concludes with a discussion on the cryptocurrency industry's lobbying efforts in Washington and the potential impact of legislation being advanced by the House. The Digital Asset Infrastructure Bill, which aims to provide a regulatory framework for crypto, faces skepticism from critics, including the White House, who argue that it is too lenient towards the industry. Despite the challenges, there is a noted increase in professional lobbying by the crypto industry, with in-house lobbyists and trade associations advocating for the sector. The segment also acknowledges the existence of 'crypto voters' who prioritize this issue when casting their votes.

Keywords

💡SEC

The SEC stands for the Securities and Exchange Commission, which is a U.S. regulatory body responsible for enforcing securities laws and regulating the securities industry. In the context of the video, the SEC is pivotal as it has paved the way for the eventual launch of investing directly in Ether through ETFs, indicating a significant shift in regulatory stance towards cryptocurrencies.

💡Ether

Ether, often referred to as ETH, is the native cryptocurrency of the Ethereum blockchain platform. It is used to pay for transactions and computational services within the Ethereum network. The video discusses the SEC's actions that have led to Ether's potential inclusion in U.S. ETFs, which would allow investors to gain exposure to Ether without directly buying the cryptocurrency.

💡ETFs

ETFs, or Exchange-Traded Funds, are investment funds that are traded on stock exchanges, similar to individual stocks. They track an underlying index or asset. The video highlights the approval of U.S. Ether ETFs by the SEC, which is a significant development as it provides a regulated investment vehicle for investors to access Ether.

💡Bitcoin

Bitcoin is the first and most well-known cryptocurrency, created in 2009. It operates on a decentralized network and allows for peer-to-peer transactions without the need for intermediaries. The script mentions Bitcoin in the context of its ETFs and its price movement influenced by news related to the Mt. Gox exchange.

💡Mt. Gox

Mt. Gox was once the largest Bitcoin exchange before it was hacked in 2011 and went bankrupt in 2014. The video refers to Mt. Gox in the context of ongoing efforts to return $9 billion of Bitcoin to creditors, which is a significant event affecting the Bitcoin market.

💡Volatility

Volatility in the financial context refers to the degree of variation of a trading price series over time. The script mentions the implied volatility of Bitcoin and Ether, indicating that Ether is expected to have larger price swings in the coming months compared to Bitcoin.

💡London Stock Exchange

The London Stock Exchange is one of the world's oldest stock exchanges and is known for its international reach and the diversity of its product offerings. The video discusses the London Stock Exchange's issuance of stock exchange notes related to Bitcoin and Ether, which are available only for professional investors.

💡Crypto ETPs

Crypto ETPs, or Exchange-Traded Products, are similar to ETFs but can track a variety of assets, including cryptocurrencies. The script mentions that Europe has had crypto ETPs for over five years, indicating a more mature market for such products compared to the U.S.

💡Regulatory Framework

A regulatory framework consists of a set of rules and regulations that govern a particular industry or sector. The video discusses a bill establishing a crypto regulatory framework, which is significant as it aims to provide clear guidelines and oversight for the digital asset industry.

💡Cryptocurrency

Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. The video's theme revolves around the growing acceptance and regulation of cryptocurrencies, particularly Ether and Bitcoin, in mainstream financial markets.

💡Lobbying

Lobbying refers to the act of attempting to influence decisions made by officials in government, typically legislators or members of regulatory agencies. The script talks about the increased professionalization of crypto lobbying efforts in Washington, indicating the industry's growing influence on policy decisions.

Highlights

Bloomberg World discusses the SEC paving the way for the launch of investing directly in Ether.

Ether is up about 3% following the SEC's action last week, which led to its best week in over three years.

Bitcoin is moving today on news tied to Mt. Gox's, once the biggest Bitcoin exchange, hacked in 2011 and bankrupt in 2014.

Ether's implied volatility is much higher than Bitcoin's, suggesting bigger swings in the coming months.

The London Stock Exchange has issued a batch of stock exchange notes related to Bitcoin and Ether.

21 Shares and Invesco are among the approved issuers for Bitcoin and Ether debut.

The SEC's approval process for Ether ETFs involves signing off on two separate filings, with the 19b-4 forms being the first step.

The timeline for the SEC's approval of Ether ETFs is uncertain, as it depends on when the S-1 filings are ready and reviewed.

The London Stock Exchange's introduction of Bitcoin and Ether exchange-traded notes is a significant step for professional investors.

Ophelia Snyder from 21 Shares discusses the global momentum around crypto as an asset class and the recent positive regulatory movements.

Catherine Dowling from Bitwise shares insights on the conversations with regulators and the political climate's impact on crypto ETF approvals.

The U.S. presidential candidates' stances on crypto could influence voter decisions, especially in swing states.

The House passed a digital asset infrastructure bill with bipartisan support, despite opposition from the White House.

Critics argue that the bill is too friendly to the crypto industry and lacks a legislative solution for regulatory gaps.

The crypto industry's lobbying efforts have become more professionalized, influencing policy and legislation.

The passing of the digital asset infrastructure bill signifies a bipartisan movement towards embracing market structure for crypto.

The Doge meme has passed away, with her photo being the face of the Dogecoin, which was worth almost $90 billion at its peak.

Transcripts

♪

BLOOMBERG WORLD HAD WORKED -->> LIVE FROM BLOOMBERG'S WORLD

HEADQUARTERS IN NEW YORK. I'M KATIE GREIFELD.

>> LOOK AT THE STUDIO.

>> I FEEL LIKE WE ARE NOT SUPPOSED TO BE HERE.

BUT WE WILL BE HERE FOR A COUPLE OF WEEKS.

>> MAKING CHANGES ELSEWHERE, BUT SURPRISES TO COME.

IT FEELS LIKE HOME.

>> THE SEC PAVES THE WAY FOR THE EVENTUAL LAUNCH OF

INVESTING DIRECTLY IN ETHER. AN UNLIKELY TURN OF EVENTS

COMPARED TO A COUPLE OF WEEKS AGO.

>> ETNS HOLDING TWO BITCOIN AND ETHER DEBUT.

THE WISDOM TREE, 21 CHAIRS AT INVESCO.

AMONG THE APPROVED ISSUERS.

>> WE WILL TALK WITH OPHELIA SNYDER FROM 21 SHARES.

AND THE NEXT STEPS FOR U.S. ETHER ETF'S WITH CATHERINE

DOWLING.

>> ALL THAT AHEAD ON BLOOMBERG CRYPTO. HERE'S A SNAPSHOT OF THE

MARKET. IF YOU WANT TO START WITH

ETHER, GIVEN THE SEC ACTION WE SAW LAST WEEK, WE WILL HAVE

MORE ON THAT IN A MOMENT. ETHER IS UP ABOUT 3%.

IT SURGED LAST MONDAY. THAT WAS AHEAD OF THE SEC

SIGNING OFF ON A PROPOSAL TO LIST PRODUCTS TIED TO ETHER.

CHECKING IN ON BITCOIN, WE CAN CALL THAT 2%.

IT IS MOVING TODAY ON NEWS TIED TO MOUNT GOC'S.

IT WAS ONCE THE BIGGEST BITCOIN EXCHANGE. IT WAS HACKED IN 2011.

IT WENT BANKRUPT IN 2014. TRADERS ARE MONITORING

TRANSFERS BY WALLACE BELONGING TO THE EXCHANGE.

THE ADMINISTRATORS HAVE BEEN TRYING TO RETURN $9 BILLION OF

BITCOIN TO CREDITORS.

>> THAT'S GO BACK TO ETHER AND THE WEEKLY CHANGE.

LAST WEEK'S DEVELOP ITS WITH THE SEC LIFTED THE TOKEN TO ITS

BEST WEEK IN MORE THAN THREE YEARS.

WE ARE TALKING ABOUT A JUMP OF ABOUT 25%.

THE BEST WEEK SINCE 2021.

>> LOOK AT THE SPREAD BETWEEN IMPLIED VOLATILITY OF BITCOIN

AND ETHER. MUCH BIGGER SWINGS IN ETHER

THAN IN BITCOIN IN THE COMING MONTHS.

ETHER IS CLOSE TO 70% THIS YEAR. BITCOIN MADE NEW RECORDS

EARLIER THIS YEAR. ETHER STILL HAS NOT SURPASSED

THE 2021 HIGHS.

>> AS THE SEC PAVES THE WAY FOR EITHER ETF'S, THE LONDON STOCK

EXCHANGE ISSUED A BATCH OF STOCK EXCHANGE NOTES RELATED TO

BITCOIN AND ETHER. WE WILL DISCUSS THESE TOPICS

WITH EMILY GRAFFEO AND EMILY NICOLE.

WE HAVE BOTH OF THE EMILY'S FOR THIS.

I WILL START WITH EMILY GRAFFEO IN NEW YORK.

LET'S TALK ABOUT ETHER AND WHAT HAPPENED WITH THE SEC. IT WAS

NOT FULL APPROVAL, WHAT WAS IT?

>> IN ORDER FOR THE ETHER ETF'S TO BEGIN TRADING ON EXCHANGES

AND INVESTORS TO PURCHASE THEM, THE REGULATOR HAS TO SIGN OFF

ON TWO SEPARATE FILINGS. THE APPROVAL OF ONE OF THE

FILINGS WE SAW LAST WEEK KNOWN AS THE 19 BE FOUR FORMS WERE

NECESSARILY BUT NOT SUFFICIENT. WE STILL HAVE TO SEE THE

REGULATORS SIGN OFF ON S1. IT IS A PROSPECTUS FILING THAT

THEY FILE. ALL INFORMATION ABOUT THE FUND,

RISK DISCLOSURES. UNLIKE THE FIRST BATCH OF THESE

PAPERS WE SAW APPROVED LAST WEEK, THEY DON'T HAVE A

DEADLINE.

SO THE SEC DOES NOT HAVE A CERTAIN DATE THEY HAVE TO MAKE

A STATEMENT ON THESE FUNDS. YOU MIGHT BE WAITING FOR DAYS,

WEEKS, EVEN MONTHS FOR THE NEXT STEP BEFORE THEY ACTUALLY BEGIN

TRADING.

>> THAT IS MY NEXT QUESTION, ABOUT THAT TIMELINE.

IF THE SEC DOES NOT HAVE A DEADLINE, WHAT IF FOLKS ARE

WAITING FOR THE APPROVAL? WHAT IS THEIR TIMELINE?

AND WHAT HAPPENED WITH BITCOIN A FEW MONTHS AGO.

>> IT WAS DIFFERENT. WITH BITCOIN ETF'S, WE SAW THE

REGULATORS SIGN OFF ON BOTH FORMS AT THE SAME TIME.

THAT IS WHY THE FUNDS STARTED TRAINING -- TRADING.

THEY ARE APPROVED, AND THEN THEY STARTED TRADING THE NEXT

DAY. THE S1 IS UP TO THE ISSUERS HOW

QUICKLY THEY GET THE PAPERWORK IN AND HOW QUICKLY THE SEC WILL

SIGN OFF ON IT WITH A LOT OF THESE ISSUERS, THEY WERE NOT

VERY PREPARED FOR THOSE TO BE APPROVED AS THEY WERE.

NOW SOME ISSUERS SAY I'M NOT AS PREPARED TO GET MY S1 READY.

I HAVE TO BE SCRAMBLING. OTHERS SAY WE KNEW ALL ALONG.

WE WERE OPERATING LIKE THAT.

SO THE SEC COULD APPROVE SOME BEFORE OTHERS.

MAYBE IF THOSE FIRMS ARE READY. IT IS ALL UP IN THE AIR.

WE WILL HAVE TO SEE IF THEY ARE LIKELY TO APPROVE EVERYTHING AT

ONCE. BUT WE DON'T KNOW. I HAVE SPOKEN TO LAWYERS TRYING

TO NAIL DOWN -- WHEN AM I GOING TO HAVE TO WRITE THE NEXT

ARTICLE ON THIS? THEY SAID WE REALLY DON'T KNOW.

>> IT WAS A STUNNING TURN OF EVENTS.

LAST WEEK WAS A SCRAMBLE FOR REPORTERS BUT. ISSUERS AS WELL.

WE WILL TALK ABOUT THE LONDON STOCK EXCHANGE AS WELL.

THE FIRST DAY OF TRADING FOR THE BITCOIN AND ETHER EXCHANGE

TRADED NOTES. THESE ARE ONLY FOR PROFESSIONAL

INVESTORS. TALK US THROUGH HOW THIS IS

DIFFERENT FROM WHAT WE ARE SEEING STATESIDE.

>> IN THE U.S., IT WAS A BIG DEAL WHEN BITCOIN ETF'S GOT

APPROVED READ IN JANUARY, IT WAS A HERALDIC MOMENT.

IN EUROPE, WE HAD CRYPTO ETP'S GOING ON FIVE YEARS EVEN MORE.

IT HAS REALLY BEEN A LONG TIME SINCE IT HAS COME TO LONDON.

ISSUERS LOBBYING TO GET THIS DONE IN THE U.K.

FOR QUITE SOME TIME. IT CAME AS A BIT OF A SURPRISE

WHEN THE REGULATOR FINALLY SAID MAYBE YOU CAN DO THIS FOR

PROFESSIONALS. IT HAS BEEN A LONG TIME COMING.

ISSUERS ONLY HAD A FEW WEEKS TO GET READY.

IT HAS BEEN SCRAMBLING ON BOTH SIDES OF THE FUND.

>> WHAT DO WE EXPECT IN TERMS OF FLOWS?

>> BECAUSE IT IS INVESTORS ONLY, WE DON'T ASK BECHTEL A

LOT. SOME SAY WE DON'T EXPECT TO SEE

ANY MOVE THEIR HOLDINGS FROM EUROPE TO LONDON.

BECAUSE THEY ARE PROFESSIONALS, THIS IS WHAT THEY DO, THEY

DON'T NEED THINGS IN LONDON OR EUROPE OR WHEREVER.

BECAUSE OF THAT, WE DON'T EXPECT A LOT OF FLOWS GOING

INTO THESE PRODUCTS. IT IS A STEPPINGSTONE.

IF THESE THINGS GO WITHOUT A HITCH AND YOU SEE A FLOW OR

DEMAND, IT WILL BE A CASE TO MAKE UNTIL REGULARS SAY YOU

NEED TO OPEN IT UP.

>> THAT IS WHAT WE ARE GOING TO BE TALKING ABOUT.

THANK YOU TO THE EMILY'S. ONE EMILY IN NEW YORK, ONE IN

LONDON. THANK YOU FOR JOINING US.

JOINING US NOW IS ONE OF THE FILERS, OPHELIA SNYDER.

A BIG WEEK FOR 21 SHARES. THE SEC PAVING THE WAY FOR THE

EVENTUAL LAUNCH OF THE U.S. ETHER ETF'S.

AND THE NEWS WE HAVE MENTIONED THROUGH THE PROGRAM, THE LONDON

STOCK EXCHANGE DEBUTING THE BATCH OF EXCHANGE TRADED NOTES.

EXPLAIN THE CONTEXT AND WHERE YOU THINK WE ARE WHEN IT COMES

TO THE CRYPTOCURRENCY UNIVERSE. WHAT DOES THIS MOMENT ME TO YOU?

>> THERE HAS BEEN A BIG CHANGE IN GLOBAL MOMENTUM OVER THE

LAST FEW WEEKS.

THEY MOVED WITH THE APPLICATION FOR SPOT BITCOIN AND BTP'S ON

ONE STOCK EXCHANGE LAST WEEK. NOT EVEN 24 HOURS LATER, THE

SEC MOVED ON OUR SPOT APPLICATION IN THE U.S.

NEEDLESS TO SAY, IT IS QUITE INTERESTING.

IT REALLY SHOWS THERE'S GLOBAL MOMENTUM AROUND CRYPTO AS AN

ASSET CLASS.

WE HAVE BEEN MANAGING PHYSICALLY BACK CRYPTO ETP'S IN

THE U.S., EUROPE, AND AUSTRALIA. WE LAUNCHED IN 2022.

SO THERE HAS BEEN QUITE A BIT OF PRESS ABOUT MOVEMENTS IN

AUSTRALIA AND APPROVALS BY THE A SX.

AS THIS TYPE OF ISSUER, WE HAVE BEEN THE FIRST MOVER IN THIS

CATEGORY FOR A LONG TIME. OUR CONVICTION THAT CRYPTO IS

THE FUTURE REMAINS TRUE TODAY AS IT WAS THEN.

OUR MISSION IS TO BUILD PRODUCTS THAT WOULD LET PEOPLE

LIKE MY MOM BY CRYPTO AND WE HAVE NOT REALLY DEVIATED FROM

THAT AT ALL. THE MOMENTUM THE LAST COUPLE OF

WEEKS HAS BEEN EXCITING TO SEE. IT IS REMARKABLE TO SEE SUCH

CONSISTENCY ACROSS DIFFERENT MARKETS.

>> LET'S TALK ABOUT THE MOMENTUM IN THE U.S.

IT WAS QUITE A REVERSAL WE SAW LAST WEEK WHEN IT CAME TO THE

TEMPERATURE AROUND U.S. SPOT ETHER ETF'S.

IT IS ANYONE'S GUESS WHEN WE GET THE FULL APPROVAL AND

LISTING OF THE PRODUCTS. BUT FROM WHERE YOU SIT RIGHT

NOW, WHAT IS YOUR ESTIMATION OF ONE THAT MIGHT BE?

-- WHEN THAT MIGHT BE?

>> IT IS A DAY BY DAY, MINUTE BY MINUTE PROCESS THAT IS

UNIQUE TO THE U.S. WE TYPICALLY SEE WHEN ANY

MOVEMENT HAPPENS IN A PUBLIC WAY, THAT IS DIFFERENT THAN THE

REST OF THE WORLD. IT SOMETIMES GIVE THE

IMPRESSION THAT MOVEMENT IS COMING OUT OF NOWHERE BECAUSE

OF THE NATURE OF THE WAY THE COMMUNICATIONS WORK.

PEOPLE ARE WORKING WITH U.S. REGULATORS FOR A LONG TIME.

AND WE HAVE DONE THAT FOR AS LONG AS THE COMPANY HAS BEEN

ALIVE. MORE THAN HALF A DOZEN YEARS

ACROSS DIFFERENT ADMINISTRATIONS AND REGULATORS.

IT IS SLOWLY BUILDING TO WHERE WE ARE TODAY. IT IS HARD TO SAY.

THE EMILY'S, AS YOU PUT IT, ARE RIGHT TO SAY WHAT THE TIMELINE

LOOKS LIKE. BECAUSE YOU ARE NOT FALLING

BACK ON STATUTORY TIMELINES. BUT I THINK THERE HAS BEEN A

LOT OF REALLY INTERESTING MOVEMENT AND PROGRESS OVER MANY

YEARS TO GET TO THIS POINT. IT IS NOT DISSIMILAR TO THE

CONVERSATIONS THAT HAVE BEEN HAD AMOUNT SPOT BITCOIN

PRODUCTS.

>> I WANT TO GO BACK TO WHAT YOU SAID, YOU MENTIONED THE

IDEA OF YOUR MOM BUYING CRYPTO. SHOULD OUR MOMS REALLY BE

BUYING CRYPTO?

>> IS CRYPTO FOR MOMS?

>> YES. IT MOST CERTAINLY IS. I HAVE THE INTERESTING HONOR OF

HAVING BEEN INTRODUCED TO CRYPTO BY MY MOM.

MY MOM IS THE ONE WHO TALKED ABOUT CRYPTO IN 2013 TO ME.

IT IS INTERESTING WHEN YOU TALK TO HER ABOUT WHY.

THIS IS HIGHER VOLATILITY THAN POTENTIALLY BUYING DEBT

INSTRUMENTS, BUT THAT BEING SAID, IT HAS A PLACE IN

PEOPLE'S PORTFOLIOS AND A PLACE FOR PEOPLE TO NEJRA'S --

RESPONSIBLE INVESTMENT DECISIONS IN THE SECTOR.

MY MOM IS A GREAT EXAMPLE. SHE GAVE AN INTERVIEW TALKING

ABOUT HOW SHE GOT INTO THE SPACE FOR THE FIRST TIME.

IT WAS FASCINATING BECAUSE THE PROMISE OF TECHNOLOGY,

ESPECIALLY IN THE CONTEXT OF MULTIGENERATIONAL PLANNING AND

RETIREMENT PLANNING AND THE PLANNING OF YOUR FINANCIAL LIFE

IS REALLY INTERESTING AND IMPACTFUL FOR PEOPLE.

WE ARE REALLY OF THE BELIEF THAT OPPORTUNITY IN CRYPTO IS

FOR EVERYONE.

>> THERE YOU GO. AND YOUR MOM BEING A GREAT

EXAMPLE. WE ONLY HAVE ABOUT ONE MINUTE.

WHEN IT COMES TO U.S. ETHER, SPOT ETHER ETF'S, WHEN

MIGHT WE SEE OPTIONS START TRADING ON THOSE FUNDS?

>> WE STILL DON'T HAVE OPTIONS TRADING ON THE BITCOIN PRODUCTS.

THAT IS A SEPARATE REGULATORY PROCESS.

I THINK THAT WILL CONTINUE TO MOVE FORWARD AS DISCUSSIONS

WITH REGULATORS ADVANCE. I WOULD EXPECT TO SEE THEM

HOPEFULLY SOON, BUT IT IS DIFFICULT TO GIVE AN ESTIMATE.

>> GOOD REMINDER WE DON'T HAVE OPTIONS ON THOSE PRODUCTS.

REALLY INTERESTING SINCE THEY WERE QUICK TO LIST WITH THE

BITCOIN FUTURES ETF'S, NOT YET WITH THE SPOT ONES.

GREAT TO SPEAK TO YOU, APPRECIATE YOUR TIME.

THAT IS OPHELIA SNYDER.

COMING UP, WE WILL SPIT -- SPEAK TO CATHERINE DOWLING

ABOUT HER PLANS WITH ANTICIPATED ETHER ETF APPROVAL.

>> AND A BILL ESTABLISHING CRYPTO REGULATORY FRAMEWORK

HEADS TO THE SENATE WITH PLENTY OF CRITICS.

LOBBYISTS SEE A MAJOR PROGRESS IN BOTH CHAMBERS.

THIS IS BLOOMBERG.

>> WELCOME BACK TO BLOOMBERG CRYPTO.

WE WILL CONTINUE ON ETHER ETF APPROVAL.

CATHERINE DOWLING IS CHEAP -- CHIEF COMPLIANCE OFFICER FROM

BITWISE.

GOOD TO SEE YOU THIS AFTERNOON. GIVE US AN IDEA OF THE TYPES OF

CONVERSATIONS YOU'VE HAD WITH REGULATORS OVER THE PAST FEW

MONTHS. AS WE GOT TO THAT MOMENT, WHERE

WE SAW THE SEC IS PAVING THE WAY FOR APPROVAL.

>> THANK YOU FOR HAVING ME. OVER THE LAST FEW MONTHS, MOST

OF US THOUGHT THIS WAS DEAD IN THE WATER, THAT THE SPOT ETHER

ETF'S APPLICATIONS WERE GOING TO BE IGNORED BECAUSE THERE

WERE NO SIGNS OF LIFE. I THINK THAT IS WHY YOU SAW LOW

PERCENTAGES IN APPROVAL. WHAT WE HAVE SEEN THE LAST TWO

WEEKS IS A TECTONIC -- TECTONIC SHIFT EMANATING FROM WASHINGTON

AROUND THE DIALOGUE WITH REGARD TO CRYPTO.

THAT IS WHERE WE SAW LAST WEEK THE APPROVAL ORDER COME OVER

AND YOU SAW THE PUBLIC FILINGS ON THE 19 SIDE OF THE HOUSE

SHOWING THERE IS LIFE OUT THERE FOR THESE PRODUCTS.

COUPLE IT WITH THE MOVEMENT WE HAVE SEEN IN BOTH HOUSES OF

CONGRESS, IT IS GREAT TO SEE THIS MUCH MOMENTUM BEHIND

MARKET STRUCTURE AND A REPEAL OF A PRETTY QUESTIONABLE STAFF

-- STAFF ACCOUNTING BULLETIN THAT WAS ANTI-CRYPTO IN PART.

>> TO MEDITATE ON THE SPOT ETHER CONVERSATION, I THINK

PEOPLE WERE SHOCKED TO SEE THIS TURNAROUND.

PEOPLE WERE LOOKING AT THIS PRETTY MUCH AS DEAD IN THE

WATER. FOLKS ON TWITTER ESPECIALLY

HAVE SAID IT WAS ENTIRELY POLITICAL, A POLITICALLY

MOTIVATED CHANGE. I'M CURIOUS FOR YOUR TAKE AND

WHAT DID CHANGE THAT WE DID HAVE THIS REVERSAL?

>> I WOULD AGREE SOME POLITICAL WINDS HEADED IN AND HELPED IN

THE CRYPTO DIRECTION. IN A PRESIDENTIAL ELECTION YEAR

WITH TWO CANDIDATES, THE BLOOMBERG LINES ARE PROBABLY

PRETTY DEFINED. BOTH OF THEM ARE LOOKING AT

WHAT WILL MOVE THE VOTER. IT HAS BECOME CLEAR CRYPTO,

BELIEVE IT OR NOT, WILL BE A FACTOR IN THE ELECTION.

TRUMP CAME OUT STRONG KNOWING PRO-CRYPTO STATEMENTS.

IF ONE OF THEM CAN GRAB THE CRYPTO BRASS RING, IT WILL HELP

IN THOSE SWING STATES WHERE CRYPTO BECOMES MORE OF A FACTOR.

SO I DO THINK POLITICAL WIND IS IMPACTING THE VIEWS THE

CANDIDATES ARE TAKING.

IF YOU LOOK AT THE TENOR OF THE MESSAGE THE BIDEN

ADMINISTRATION SENT PRIOR TO THE REPEAL, IT WAS A THREATENED

VETO. WE WILL SEE IF IT TAKES PLACE.

MAY 28 IS THE BIG DAY WHETHER THE BIDEN ADMINISTRATION GOES

THROUGH WITH IT. COMPARE IT TO THE STAFF

ADMINISTRATION POLICY THAT WAS RELEASED PRIOR TO THE VOTE ON

FIT 21. THE LANGUAGE WAS MUCH MORE WE

ARE GOING TO WORK WITH THE CRYPTO INDUSTRY.

IT WAS OPPOSED, BUT NOT AS THREATENING AS THE LANGUAGE

THAT WE SAW IN THE PRE-VETO STATEMENT PRIOR JUST A WEEK

EARLIER.

>> WHICH OF THE MAINSTREAM POLITICAL CANDIDATES ARE BETTER

FOR THE CRYPTO INDUSTRY? PRESIDENT BIDEN OR FORMER

PRESIDENT TRUMP?

>> IF YOU LOOK BACK IN TIME FROM NOW, THE REPUBLICANS HAVE

BEEN MUCH FRIENDLIER TO CRYPTO. THE REPUBLICANS HAVE TAKEN THE

TACT OF PUSHING BUSINESS OFFSHORE'S, WE NEED TO KEEP THE

BUSINESS ON SHORE, AND THAT IS 100% CORRECT.

WE NOT ONLY LOSE BUSINESSES, BUT WE CAN CREATE A NATIONAL

SECURITY ISSUE BY PUSHING ALL OF THIS OFFSHORE.

AS A FORMER FEDERAL PROSECUTOR, IT IS MUCH HARDER TO LOOK INTO

THESE BUSINESSES AND FIND OUT WHAT IS GOING ON IF THEY ARE

NOT ON OUR SHORES. BUT IF WE CAN SEE A MOVEMENT IN

THE DEMOCRATIC SIDE, IF THERE IS MORE OF AN EMBRACE OF

CRYPTO, THAT CAN MOVE IN POSITIVE DIRECTIONS.

HISTORICALLY IT HAS BEEN A MUCH FRIENDLIER CRYPTO STANCE WE ARE

SEEING FROM THE REPUBLICAN PARTY .

THAT COULD SHIFT DEPENDING ON WHO COMES INTO THE VARIOUS

ROLES THAT ARE KEY FOR POLICYMAKING IN THE U.S..

>> IT WILL BE FASCINATING TO SEE HOW THE CONVERSATIONS

INTENSIFY AS WE GET CLOSER TO NOVEMBER.

JUST TO TALK ABOUT THE BILL THAT WAS PASSED IN THE HOUSE

LAST WEEK, WHAT ARE THE ODDS OF IT BECOMING LAW?

>> UNFORTUNATELY, THE ODDS ARE LOW.

WE ARE LOSING DAYLIGHT ON HOURS IN CONGRESS BECAUSE OF -- IT IS

AN ELECTION YEAR. WE DON'T HAVE MUCH MORE TIME

BEFORE THE END OF THE YEAR. STRANGER THINGS HAVE HAPPENED.

IT CAN BE TAGGED ONTO OTHER BILLS.

THE IMPORTANT ASPECT IS WE SEE BIPARTISAN MOVEMENT TOWARDS

EMBRACING THE FACT OF THE NEED FOR MARKET STRUCTURE.

WE'VE HAD ENOUGH OF THE CFTC VERSUS SEC CAPTURE THE FLAG

JURISDICTIONAL BINGO. WE NEED TO MOVE FORWARD AND

DELINEATE WHO IS IN CHARGE. WE NEED TO SET OUT SIMPLE

THINGS LIKE DEFINITIONALLY HOW WE DEFINE DIFFERENT ASPECTS OF

DIGITAL ASSETS. WE NEED TO STOP RELYING ON CASE

LAW THAT WAS AROUND AND MADE WHEN BIDEN WAS A TODDLER.

SO IT IS TIME TO MOVE FORWARD WITH MARKET STRUCTURE.

WHAT WE ARE SEEING IS AN EMBRACE ACROSS BOTH SIDES, BOTH

PARTIES OF THAT NECESSITY. THAT IN AND OF ITSELF IS A WIN.

>> IT IS GREAT TO GET YOUR PERSPECTIVE, APPRECIATE YOUR

TIME. THANKS TO CATHERINE DOWLING,

CHIEF COMPLIANCE OFFICER FOR BITWISE.

COMING UP, THE HOUSE PASSING A DIGITAL ASSET INFRASTRUCTURE

BILL. BUT TOUGH ODDS IN THE SENATE IN

THE WHITE HOUSE. DETAILS NEXT. THIS IS BLOOMBERG.

>> PRESIDENT BIDEN HIMSELF IN THEIR EXECUTIVE ORDER AND THE

FINANCIAL STABILITY OF OVERSIGHT COUNCIL'S REPORT SAYS

THERE IS A REGULATORY GAP BETWEEN COMMODITIES,

SECURITIES, AND HOW TO DO THIS IN THE RIGHT WAY.

THEY ARGUE IT SHOULD HAVE BEEN A LEGISLATIVE SOLUTION.

I THINK WE HAVE TAKEN A RIGHT SOLUTION THAT PERHAPS NEITHER

CHAIRMAN KINSLER AT THE SEC AND CHAIRMAN BENHAM AT THE CFTC

COULD NOT REALLY DO IT IN A FULL, EFFECTIVE WAY WITHOUT

LEGISLATION.

>> THAT WAS REPRESENTATIVE FRENCH HILL ON BLOOMBERG.

THE HOUSE ADVANCED SWEEPING CRYPTOCURRENCY LEGISLATION WITH

BIPARTISAN SUPPORT. CRITICS INCLUDING THE WHITE

HOUSE OPPOSED THE BILL, SAYING IT IS TOO FRIENDLY TO THE

INDUSTRY. KATE ACKLEY HAS BEEN FOLLOWING

AND JOINS US. GIVE US THE DETAILS OF THE BILL.

HOW SIGNIFICANT IS IT?

>> THIS IS THE FIRST TIME LEGISLATION IS SITTING OUT A

REGULATORY FRAMEWORK FOR CRYPTO. IT IS VERY SIGNIFICANT.

THIS IS MANY YEARS IN THE MAKING.

IT IS A BIG PRIORITY OF HOUSE FINANCIAL SERVICES CHAIRMAN

PATRICK MCHENRY, WHO IS NOT RUNNING FOR REELECTION.

SO THIS IS HIS LAST CONGRESS. IT IS KIND OF AN OPPORTUNITY

FOR HIM TO PUT HIS STAMP ON THE CRYPTO REGULATORY FRAMEWORK.

PERHAPS EVEN AFTER HE LEAVES OFFICE.

>> I'M CURIOUS ABOUT YOUR THOUGHTS ON THE CRYPTO

INFLUENCE MAKING AND LOBBYING OPERATION.

IT SEEMS ARTICLE AFTER ARTICLE TALKS ABOUT HOW IT IS CRYPTO'S

LOBBYING MOMENT IN WASHINGTON.

>> THIS IS AN INDUSTRY THAT IS NEW AND HAS BEEN GROWING UP

QUICKLY IN THE PAST YEAR.

ALL OF THE FALLOUT FROM SAM BANKMAN-FRIED, WHO IS HIS OWN

SUPER PAC, IF YOU WILL. TRYING TO PUSH CANDIDATES IN

SUPPORT OF THE INDUSTRY. IT HAS GOTTEN MORE

PROFESSIONALIZED. AND IT LOOKS LIKE OLD-FASHIONED

INDUSTRIES WHEN IT COMES TO ITS INFLUENCE APPROACH.

THE COMPANIES HAVE IN-HOUSE LOBBYISTS, THERE ARE TRADE

ASSOCIATIONS THAT HAVE STARTED TO STAND UP AND ADVOCATE FOR

THE INDUSTRY IN A MUCH MORE FORMALIZED AND PROFESSIONAL WAY.

WE HAVE TO TAKE NOTE OF THE CRYPTO VOTERS IF YOU WILL.

THE PEOPLE THAT CRYPTO IS AN IMPORTANT FACTOR, MAYBE THERE

ARE SINGLE ISSUE VOTERS. CERTAINLY THAT IS AN ISSUE THAT

THEY WILL VOTE ON. I THINK THAT IS PART OF WHY YOU

ARE SEEING THE SUPPORT IN CONGRESS INCREASE.

YOU TALK TO MEMBERS, YOU TALK TO PEOPLE LIKE THE FINANCIAL

SERVICES CHAIRMAN. HE SAYS THERE ARE CRYPTO VOTERS

AND THEY ARE ORGANIZED. SOME OF IT HAS BEEN IN WORKING

WITH THE INDUSTRY.

BUT HIS PEOPLE RISING UP SAYING WE CARE ABOUT THESE ISSUES.

>> REALLY APPRECIATE YOUR REPORTING, THAT IS KATE ACKLEY.

ELSEWHERE IN CRYPTO, RYAN SALEM IS THE FORMER OF THE ATX

BAHAMAS -- HE'S SET TO APPEAR IN COURT EARLIER TODAY.

IT IS OF SAME BANK FRIENDFEED'S -- INFLOWS AND.

>> ONE MORE THING BEFORE WE GO, THE ONE WE KNEW AFTER THE DOGE

MEME HAS DIED, HER PHOTO WAS THE FACE OF THE COIN WORTH

ALMOST $90 BILLION AT ITS PEAK. REST IN PEACE.

>> WHAT A NICE NOTE TO END THE SHOW ON.