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The Wolf Of All Streets
The Bitcoin Floodgates Just Opened, Here’s Why Demand Could Go Parabolic
00:47:23
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- [00:01]
Scott Melker
The bitcoin floodgates just opened. To who, you may ask? The 90 million clients and customers of one JP Morgan, led by bitcoin's biggest fan, Jamie Dimon, who's had nothing but good things to say about bitcoin. Historically, it's his favorite asset class. He loves it and loves talking about it. Yeah, we know Jamie Dimon doesn't love bitcoin very much. His 90 million customers probably will. We're going to discuss that and everything else happening in the market with Andrew Parrish and Padget Stanko from Gemini. Tillman has ghosted us once again. No, it's his kid's birthday, so we're letting him do that. But either way, we can now make fun of him, which is great. See you guys in a minute.
- [00:47]
Andrew Parrish
Let's do.
- [01:02]
Scott Melker
What's up, everybody? I am Scott Melker, also known as the Wolf of all streets. Before we get started, please subscribe to the channel and hit that, like, button that literally doesn't work. It's like I. It's such a habitual thing for me to say it, but you're all indifferent. It sounds stupid. I'm gonna stop saying it. Remind me tomorrow that I'm gonna stop saying that. I'm just gonna start talking at the beginning of the show because I have amazing guests like Padgett and Andrew to talk to. It's dumb. I don't know. I say it every day. Every YouTuber, I think, like, has a thing that just becomes habitual. Like, I'm George, you're George. We're all George and stuff. But mine's dumb.
- [01:37]
Padget Stanko
I think you gotta. You gotta throw it in the middle, Scott. Different cadence. Oh, random interjection.
- [01:43]
Scott Melker
I need to like to. More emphasis on a different syllable or something.
- [01:48]
Andrew Parrish
By the way, I wanted to give a quick shout out to Tillman, who is not here because it's his first child's birthday. Mary Lane. Something that people don't know about Mary Lane. She is like the number two or three rated in her class. Pickleball player, like, in the entire United States.
- [02:08]
Scott Melker
Yeah, she pickleballs.
- [02:10]
Andrew Parrish
So she is. She is fantastic. She's awesome. And just gonna give a shout out to her. Happy birthday. Well done, Tillman. Taking the day with family. And she's a pickleball star, so very cool.
- [02:25]
Scott Melker
Baller, if you will.
- [02:26]
Andrew Parrish
That's right. Indeed.
- [02:28]
Padget Stanko
Happy birthday, Mary Lane.
- [02:30]
Andrew Parrish
That's right.
- [02:31]
Scott Melker
Birthday to Mary Lane. See, now he's gonna have to show her this.
- [02:34]
Andrew Parrish
That's right. That's right. That's great.
- [02:36]
Scott Melker
This is the best Thing that probably happened to her all day, I would imagine getting a happy birthday from Andrew. But hey, let's talk about the news because I brought it up. We'll start here. JP Morgan CEO Jamie Dimon says the bank will let clients buy Bitcoin. Thanks Dad. Obviously, like finally, you know, he's going to let you get 45 minutes on the iPad instead of 30 minutes it sounds like. But yes, Jamie Dimon, long time hater, king of the haters in fact, is gonna follow in the footsteps of his competitors, especially Morgan Stanley, who made a similar announcement just a few, few months ago and allow all their clients access to Bitcoin. I think before, correct me if I'm wrong, but their wealthiest clients had access already. So I think it was like sub above 2 million portfolio. There was some benchmark that you were allowed to maybe call them and think about asking permission, but now you can get it. They're not going to custody it. And I'm pretty sure it's still just ETFs but still a step in the right direction.
- [03:37]
Andrew Parrish
Yeah, it's, it's watch what they do, not what they say. Right. So J.P. morgan is making plenty of money on the authorized participant side as they've got their hands and fingers associated with the Bitcoin ETFs. You know, they're an AP on, on BlackRock CTF with just past 65 billion in AUM, which is extraordinary. So again, here's the thing. JP Morgan has been making money on Bitcoin for more than a year and now, hey, we'll let our retail clients have access to it. Now you're right inside the JP Morgan world. From a wealth management side, there's two different types of wealth management at JP Morgan. There's JP Morgan, quote unquote wealth management, which is garbage and sucks, and then there's JP Morgan private bank, which is for like the real significant rich people. So those JP Morgan Morgan private bank folks have had, have had access to Bitcoin ETFs for I don't know, six to nine months at this point. So now they're giving access to, you know, lower capital intensive type clients, you know, under the 5 million mark that do business with, with JP Morgan. So always an interesting, you know, commentary from Jamie Dimon. But again it's watch what they do, not what they say because they've had their fingers on Bitcoin for a significant amount of time. It's just, okay, who else do we allow to, to be involved with this after we've made enough money?
- [05:17]
Scott Melker
I Mean, Patrick, at the end of the day they're just gonna always do what they can to make money, right? Yeah. I mean, listen, you got JP Morgan, like they have JP Morgan coin, right, that they use for settlements. They, they settled a like transaction, a tokenized transaction last week for the first. I mean, JP Morgan is so deep in crypto, it's ridiculous. But still, opening this to their clients is a big deal, right, Padgett?
- [05:40]
Padget Stanko
Yeah, I think, you know, it just shows we're, we're trending in the right direction. That sentiment 180 from Jamie at the top being one of the most, you know, intelligent, influential investors globally. Right. It means some things. So yes, they have had access before. Yes, they have been involved and are making money in this asset class, but now saying that they're going to give access to more. So I think Andrew's right. Let's see what they do. But definitely awesome to see and excited to have him say it so publicly.
- [06:13]
Scott Melker
I guess it'll be interesting to see how much demand there actually is from JP Morgan clients and if those JP Morgan clients who wanted Bitcoin exposure already found it elsewhere.
- [06:22]
Andrew Parrish
Yeah, got it.
- [06:23]
Scott Melker
I find laughable here. Anyway, it's like if you have a JP Morgan account for whatever and you were dying to buy a Bitcoin etf, you probably just like opened an E trade account or called Schwab or whoever else would allow you to do it. Right?
- [06:34]
Andrew Parrish
Yeah.
- [06:35]
Scott Melker
I can't imagine there's people sitting in Vanguard who are like, I just can't wait for Vanguard to finally allow me permission to like Bitcoin.
- [06:42]
Andrew Parrish
No, no. It's fairly well known in the world of wealth management that JP Morgan is not good at wealth management. And, and here's the reason why. They have an enormous amount of proprietary product, right? So they do all sorts of JP Morgan branded stuff that they will first put into your account before anything else. That is still a real thing at J.P. morgan. And it's why branding still matters no matter where you are. J.P. morgan is a huge brand and people instinctively believe if they're at Goldman Sachs or JP Morgan, my money safe. Well, that allows them to create less than type of product and people scoop it up and eat it up, whereas they would be better off using Vanguard type products. So JP Morgan just remains an interesting bellwether associated with the movement that we're in in digital assets and, and wealth management overall and the place that Bitcoin is taking in that traditional world because it can't be ignored. I mean, we're at the Point now where I think BlackRock is now second, just behind Satoshi in total. Total bitcoin underneath their. Their Ibid brand. They passed Binance, I think, and they're. They're. I think one of the. One of the. The Bloomberg ETF guys put out a little chart today that they've. They're. They're. The only one they have to pass now is Satoshi. So Satoshi's wallet, easy. Yeah.
- [08:19]
Scott Melker
So I don't say that sarcastically, like, there's only one direction for these things over time, not the band.
- [08:26]
Andrew Parrish
Yeah. So JP Morgan is an interesting headline. Jamie diamond is an interesting headline. You know, they just built this huge building and it's got diamonds all over the outside of it in terms of picture, surprisingly, you know. So the guy's ego is bigger than most, but still interesting when he talks about bitcoin.
- [08:45]
Padget Stanko
Yeah. I think generally speaking. Right. The traditional banks are slow movers, so hopefully we see more momentum here and more to follow.
- [08:54]
Scott Melker
Yeah. Like I said, it's inevitable. A vanguard may actually just hold out indefinitely. That. That would not surprise me just because they made such a stink about it. But Jamie Dimon, even in all of his dismissiveness, always said, listen, like, I don't think smoking is good, but I believe people should be able to smoke. Right. But he literally said that. Right. But he's always said, we're gonna do what our customers demand. That's our business. Maybe more interesting to talk about how this is meaningful because of just how powerful they are. I mean, Padgett, right before the show, we were saying, hey, we could talk about tariffs and how bitcoin is kind of decoupled to some degree. But interestingly, he was one of the louder voices when the tariffs were announced and there were some meaningful changes after. He may or may not have had some meetings with the administration. Right. So, like, these guys are powerful. Really powerful.
- [09:44]
Padget Stanko
Definitely. I mean, I think again, you know, he's one of the most influential investors, globally speaking. And so coming out and making this statement and opening up the rails for their clients, you know, is in the right direction, I think. You know, it's like moving a cruise ship takes time, but lots on board.
- [10:03]
Scott Melker
And norovirus, everybody gets sick on those things. I won't go on one of those for many.
- [10:07]
Padget Stanko
Bring in the negative. It's okay, Scott.
- [10:09]
Scott Melker
It's fine. I mean, I like what you said. I. I just. Cruise ships, they give me like the serious.
- [10:15]
Padget Stanko
Never been on one, I will say. So just. Just an analogy there.
- [10:19]
Scott Melker
Yeah, you're right. So listen, Jamie. Can we call Jamie Diamond Jim? Jim.
- [10:26]
Andrew Parrish
Yeah.
- [10:27]
Scott Melker
Because I just wanted to do a segue to another Jim who is always right and is obviously in our favor. It's Jim Kramer. Justin, Jim Kramer says buy bitcoin to hedge excess government debt.
- [10:40]
Andrew Parrish
Yeah. No.
- [10:41]
Scott Melker
How rude are we.
- [10:42]
Andrew Parrish
Yeah, let's ignore that. He's two to three years behind this particular narrative. Right. So, you know, hedge excess government debt. When Larry Fink was orange pilled, you know, 18 to 24 months ago, that was his, you know, beginning trope is that bitcoin, at minimum, is a. Is a great hedge against, you know, do governments get out of control? So, Jim, you know, that's not good. That's not great. That's not great.
- [11:10]
Scott Melker
I mean, Jim, a lot.
- [11:11]
Andrew Parrish
Yeah. Being pro bitcoin, it just feels, you know, when we're sitting at, you know, near the highs heading into the bitcoin conference. Jim, just don't say anything. Don't say anything.
- [11:22]
Scott Melker
I know we have this, like, sentiment that price always goes down during the bitcoin conference. Right. Like, it's always kind of bad.
- [11:28]
Padget Stanko
Yeah.
- [11:29]
Andrew Parrish
Last year didn't.
- [11:30]
Scott Melker
Yeah. I. I was gonna say, I don't know that that's factually true. I remember being there, like, in 21, and it was brutal because that was when it was like way up, way down through the summer, and it was like in June, and we had just gone off a cliff from like 65 to 35.
- [11:48]
Andrew Parrish
Yeah.
- [11:48]
Scott Melker
A week. So but, you know, maybe they get the unfair sentiment from that there.
- [11:55]
Andrew Parrish
I remember. I remember in. In Miami, you know, they had a big board, and at that point, I think this was 22, actually. You know, they had a big board with the price and it was, you know, in the 43. 44, 45 down to 42. The next day you walked in, it was 41.
- [12:13]
Scott Melker
So it was just.
- [12:14]
Andrew Parrish
Yeah, yeah. It was not. He was not fantastic.
- [12:19]
Scott Melker
But to be fair, every person who is ever going to buy bitcoin in size on the planet at that point in was there.
- [12:27]
Padget Stanko
You may need to start incorporating some booyah buttons and trackers as we head to Vegas next week.
- [12:33]
Scott Melker
I have this thing.
- [12:38]
Andrew Parrish
That is outstanding. I forgot that I had that until.
- [12:42]
Scott Melker
You literally said, there's a few of them here. They're pretty funny. They're buttons. So let's talk about, though, that decoupling. Right. So we didn't really get into it, but obviously markets have done well. But bitcoin, as I've said, performed like a great hedge fund since Liberation Day. Right. It's outperformed to the downside, which is what you want from your hedge fund, but then actually outperformed to the upside as well. As much as we've cheered the V shaped recovery in stocks and tech, doing well. Yeah, they got back to where they started and slightly above bitcoin was at 82. It's at 104, 105. I mean, wildly outperforming everything both to the downside and upside. Incredible, incredible price action to see. I don't know if we can like extrapolate, I mean, from the Gemini perspective. Padgett, what does that look like to you guys?
- [13:32]
Padget Stanko
Yeah, I mean, I think you hit the nail on the head. Bitcoin has held up relatively well, particularly in comparison to some of the other assets. I think. Right. We touched 107 on Sunday. And so I think generally we're seeing bitcoin finally come through as a unique asset. It's showing strength in the past month. And so I think regardless of the bitcoin conference next week, sky's the limit. I think from a Gemini perspective, continuing to see high volumes, lots of activity come through, obviously those price points and all time high. Weekly close last week was fantastic. I would ask you guys, where do you see bitcoin going next week and kind of trailing into the summer here?
- [14:19]
Andrew Parrish
Scott, give us your thoughts.
- [14:21]
Scott Melker
Honestly, I'm a contrarian here. I loved the idea of the highest daily and weekly close. And I'm never, I'm not bearish, guys, ever. It's a time frame thing to me. We start, I started to feel that like peak irrational euphoria on a Sunday pump when, you know, it's just like some company bought a bunch and nobody else was in the market. And technically, to me, it looks like we should go down a bit here first. But then. So, yeah, if I had to make a prediction, I'd say we're like somewhere in the mid-90s during the Bitcoin conference, just to keep everybody measured. And then we probably fly again, I don't know, in December or after summer. Summer always sucks, too. Even in the best part of the cycle. Summer always sucks.
- [15:04]
Andrew Parrish
Yeah, the concept of sell in May and go away still exists. And given that bitcoin continues to be more and more of an asset that's integrated with traditional finance, you're going to see some of that, especially when we're at 104, 105, 106, you know, over the past 24 hours, there's going to be a percentage, a subsection of money managers involved in the asset. They're going to say, all right, we're up 35% since the lows 45 days ago. Maybe I should chisel off some here and, you know, spend some time in Montauk over the next.
- [15:42]
Scott Melker
I mean, I don't, I don't feel like people are so excited about the macro still. Even though stocks are up. I, to me, it just feels like there's still so much uncertainty like one that like China, China decided not to talk this week.
- [15:53]
Andrew Parrish
And yeah, my guess is, is that there's going to be enough announcements at the bitcoin conference associated with additional treasury companies. There's going to be an announcement or two associated with, you know, a bitcoin balance sheet. You know, 5% or 10% of treasuries going to be, you know, put into bitcoin. I think those things are going to happen that, that'll be meaningful to, to price, you know. But could we be at 95 in a week from now? Could we be at, you know, 107 to 115? Yeah, sure, sure, we could be. But you're right, you know, could there be a pullback, a healthy pullback after a 35 run up? Absolutely. And again, it's all in context, right? So a 5% or a 10% move in Bitcoin now is a significant actual hard dollar number as opposed to when it's at 41. Right. That hard dollar number is very, very different. So a 10% move is down into the 90s in a significant way right now as opposed to before. If you're at 47 and you go down 10%, you're still in the 40s. Right? You're still in the 40s. It's not this emotional trigger point under 100K. So those percentage numbers in terms of hard dollars get bigger and bigger. It's why when traditional markets like that, the dow is down 1,000 points today or up 1,000 points. That's not as big of a deal as it was when the dow was at 17,000.
- [17:24]
Scott Melker
A thousand dollar Bitcoin move is not even 1% anymore. I'm old enough to remember 4,000 to 3,000 being like, it's literally over.
- [17:31]
Andrew Parrish
Like, yeah, yeah. So the, you know, game has changed a little bit here. And price movement, when we go from 109 to 116, everybody on crypto Twitter is going to be losing their mind. But traditional asset managers are going to be like, oh, we're up three and a half percent. That, that's a good day. Well done. You know, well done. New ass.
- [17:56]
Padget Stanko
Yeah, yeah, I Think I agree with you both. I think the. The uncertainty is still here. The 90 day, you know, cool off China US tariff period right now. I think we could see more activity closer to that coming up. Right. That 90 day mark coming up. But we'll see what happens.
- [18:14]
Andrew Parrish
Right.
- [18:14]
Padget Stanko
Do we continue with a trade war? Is there some sort of truce?
- [18:22]
Scott Melker
Yeah. I mean, have you heard rumor of what the big announcements will be in. In Vegas? I mean, Andrew I think kind of touched on them, but we know this is the place. I literally wrote a newsletter about it yesterday. Just saying, hey man, everything changes in a week because we know there's going to be something. Right? I mean, Bukele's announcement was at the bitcoin conference in 2021. This is where we get all the big news. Got J.D. vance, couple trumps, bunch of world leaders gonna be there, certainly all the politicians. There's gotta be side. There's gonna be three or four of these huge things. Yeah, Nice little move, but we should see some.
- [18:52]
Padget Stanko
Yeah, I think there's a lot. Yeah, I think there's a lot circulating. And you're exactly right. There's a lot from a political standpoint who are going to be, you know, on the ground and have speaking spots. So there must be some sort of announcement what they are exactly. I am not sure. Waiting to see Andrew.
- [19:11]
Scott Melker
Yeah.
- [19:12]
Andrew Parrish
Yeah. So, I mean, you know, there's a reason why Robinhood's CEO is, is going to be speaking at the Bitcoin conference, right?
- [19:18]
Scott Melker
You mean with me in the Arch Public Room on Tuesday at 4:00pm that's absolutely true.
- [19:24]
Andrew Parrish
That'll be a more important speech.
- [19:27]
Scott Melker
Not saying that I just arranged that.
- [19:31]
Andrew Parrish
But there's. There's a reason why certain. You know, if you look through the speaking bubbles that they have on the website, you know, you're going to find some interesting folks that may have some things to say that could be compelling, whether it's public companies or not. Yeah, there, there. There will be some announcements. It is interesting that Nakamoto is now the. The. The title sponsor. Yeah. Yeah. So someone will be a title sponsor. So it. It. There are going to be some announcements. The. The scale of those announcements not. But all you have to do is, you know, follow David Bailey's, you know, Twitter handle to know that they have to cook up something. Right. And it. And it's got to be relatively large. Last year, the fact that Trump showed up again is still. Blows my mind.
- [20:25]
Scott Melker
Last year was wild.
- [20:26]
Andrew Parrish
Yeah. But he wasn't even, you know, he wasn't president at this Point now we have a sitting vice president that's going to be at the bitcoin conference.
- [20:35]
Scott Melker
And Elon Musk was supposed to be on stage with him. And then they got in a like, tiff with the conference about whether it was going to be a fireside or he's going to like be next to him or behind him, in front of him. And Elon's plane touched down and then took back off. Do you guys remember any of this?
- [20:49]
Andrew Parrish
Yes. Yeah.
- [20:52]
Scott Melker
Yeah.
- [20:52]
Andrew Parrish
Nashville. Honestly, Nashville wasn't well prepared to handle the scale of all.
- [20:57]
Scott Melker
Nobody is. Now they're ready. Yeah. I mean, the Secret Service, it's. It's wild.
- [21:01]
Andrew Parrish
Yeah. Vegas is going to be able to handle the scale. Yeah, it's going to be. It's going to be huge. I. It wouldn't surprise me if we end up with 50, 000 people in total over the three days. That wouldn't surprise me at all.
- [21:13]
Padget Stanko
Crazy. Just to tie in on the Tesla piece as well, Gemini's got some exciting Vegas events as well. We excited. We announced yesterday we're actually going to be giving away two cyber trucks. So that should be pretty fun. And fun commotion, a good bitcoin orange cybertruck, you know, pertaining to our credit card campaign. So just a tie in kind of Tesla and Elon. And obviously our founders Cameron and Tyler will be there as well. So there's a lot going on.
- [21:46]
Scott Melker
Hey, Andrew, is this an appropriate time to ask Padgett if we can get Tyler and Cameron for an interview?
- [21:54]
Padget Stanko
Don't worry, it's already been asked. Well, we'll let you know about that.
- [21:59]
Scott Melker
I mean, tell them that Vlad. Vlad's coming over.
- [22:02]
Andrew Parrish
Yeah, they're working on it internally. They're working on it internally. I get. I get plenty. I get enough corporate speak with Padgett and folks from Gemini. I don't need it on this show. Okay.
- [22:13]
Scott Melker
Our people will call your people. It's working through that. It's working through the motion. So listen, I know, Pat, you gotta go pretty soon, but there is another really interesting story here that I think is worth discussing because you actually see the volume and the price action probably on your side. Bitcoin ETF inflows surge as basis trade nears 9%, signaling renewed demand. Investor confidence rises as Bitcoin holds above 100,000 and basis trade yields approach 9%, drawing strong institutional interest. We've talked about this a million times for everyone. But what that means is you basically buy spot bitcoin or you buy an etf. In this case, it's Been IBIT across the board. And if you're wondering why IBIT is getting like 70, 80% of the volume, it's because it has options on it. And this is the one people trust for this trade. But 9% annualized by shorting the futures and just simply buying spot is double what it was even a month ago. So we saw this trade being huge. Then we saw it unwind because it got less attractive. Now it's huge again. So if you're wondering why we're seeing these kind of insane, it's not here, but insane inflows, that's probably the reason for the huge bump there.
- [23:18]
Andrew Parrish
Well, there's, there's, you know, I can speak to the fact that hedge funds still exist and this is what they do, right? I mean they arbitrage volatile assets and they find really creative ways to do that. And so whether it's options, whether it's the price difference between futures and spot, you know, think about that. You know, when futures opened on Sunday, right. You know, one could make the case that not only was there a whale and binance and some stuff going on on Sunday, but also you had futures pop to the, to the upside very, very quickly at 6pm on Sunday. And again that there, there are forces at work here that will do two things. I think in the, the short to middle term it will, you know, serve to push Bitcoin significantly higher and that's options, futures. There's lots of stuff being built around and volumes starting to really explode around Bitcoin right on the edges. And let's, you know, a lot of people like to call it paper Bitcoin. Well, paper, paper, anything can push a spot asset, commodity significantly higher. It can also push it lower. So be careful what you wish for, right? But this isn't going away. This will grow. Options and futures volumes will significantly grow over the next nine months. The question is, you know, how does spot bitcoin respond to it? What movements in the price will actually happen? A reminder that, you know, I don't know, four or five years ago, you know, oil actually traded negative. That was weird. So point being is, is that we, we get in this spot where the ancillary versions of the commodity are, is where all the volume is. And we're getting close by the way with Bitcoin. Wild movements can still happen.
- [25:15]
Scott Melker
Padgett.
- [25:18]
Padget Stanko
Yeah, I think really interesting for sure seeing a lot of activity on the spot side. I mean, you know, plug for arch and the dollar cost averaging capabilities that are capable via that algo. Right. And why People want to use it. And what's attractive, I think, you know, we're seeing a lot of activity through Gemini's, you know, OTC desk and our trading team and offerings there as well. Yeah, I think generally exciting to kind of have that activity. I think regardless of an ETF or not, we're seeing so much spot directly through the Gemini platform obviously as well. And so all positive momentum, I think across the board.
- [25:57]
Scott Melker
Quickly, talk to me a little bit about the OTC desk. Is that how the larger institutions actually participate in a trade like this?
- [26:06]
Padget Stanko
Yeah. So Gemini's got two OTC kind of options available. We've got a voice OTC desk and traders globally. And so placing those on your behalf and being able to, you know, execute a T wop or whatever it may be outside of the exchange as well. And then we've got an eotc, an electronic over the counter solution as well that allows for an intraday credit line, net end of day settlement. So obviously a lot of ability there to not have to have fully pre funded for those trades to go through.
- [26:36]
Scott Melker
Yeah, there's, there's this idea that OTC trades don't really affect price. Is that true? Obviously if you threw a couple million on the exchange, bought on the open market, be different. But they definitely affect price. In my.
- [26:49]
Padget Stanko
In your humble opinion?
- [26:51]
Scott Melker
Yes, in my humble opinion. Andrew's laughing at us. So you think they do affect price, Andrew? Is that what you're saying?
- [26:57]
Andrew Parrish
I'm reminded of a 90s skit on SNL where Sandler, the only answer he gives on the Jeopardy is who are the marketing geniuses that came up this one? Right. That's my response to OTC doesn't really affect price. Like wow. Yeah. I mean, you know, there, there are people that are really smart in the space and then there are those that think that. And so yeah, yeah, I think Kramer is behind you.
- [27:28]
Scott Melker
Yeah, literally I can see Kramer moving.
- [27:31]
Andrew Parrish
There he is.
- [27:31]
Scott Melker
Come on, man. You could put literally anything on tv. Put Pulp Fiction on.
- [27:39]
Andrew Parrish
Yeah. Again, a reminder that the scale of the bitcoin ecosystem we're still the growth is going to be something to behold. Two and three years from now, our conversations about it will be significantly different 24 months from now because of the opportunity associated with volatility and the ability for Wall street to profit from a new volatile asset versus everything else that's fairly commoditized in terms of pricing. So they can charge a premium for products and for the movement of that product right now in ways that they can't on Gold or S, P, whatever or whatever it happens to be. All of that stuff is essentially the same price across all of Wall Street. That's not the case and won't be the case for a while on Bitcoin, which is why Self and then all of the ancillary things that are built around it will explode over the next two to three years.
- [28:48]
Padget Stanko
Andrew, I gotta say, you know, you've got Devil on your shoulder over there. Kramer, we had Elon pop in. I'm getting a little distracted.
- [28:56]
Scott Melker
Yeah, we need. Yeah, we need, like, someone to offset it on your other. Exactly.
- [29:01]
Padget Stanko
Balance. We're gonna start playing with that tv, have a split screen and see what we can do with it.
- [29:06]
Scott Melker
Do you have, like, two. Padgett. Do you have, like, two more minutes or do you need to go.
- [29:09]
Padget Stanko
Yeah, I can stay on because there's.
- [29:10]
Scott Melker
One more story we gotta talk about, which is obviously this Genius act passing. Cloture. It's a word they made up last week. I'm convinced that. Never heard that word before. Really? Fancy clothes or closure, and I don't know which one it is. Couture. Cloture. Sure. But crypto industry tiers. Progress in Historic stablecoin Legislation as Senate Advances Genius act. So, of course, everybody cheered that they had passed it, but that's because people are dumb. They didn't pass it. They basically passed the right to debate it and then think about passing it. But still, this was very much in question a week ago. Now at least we've made progress, but I think. Still not out of the woods, right?
- [29:50]
Padget Stanko
Yeah, not fully complete yet. Right. But I think, generally speaking, getting to the next step here, making it onto the floor. And I think, generally speaking. Right. It's just showing, you know, maturity in the regulatory landscape right now. So trending in the right direction, I think will push more institutional growth. Hopefully. But not. Not conclusive yet.
- [30:16]
Scott Melker
Gemini is a stable coin.
- [30:18]
Padget Stanko
We do.
- [30:19]
Scott Melker
You guys have to be watching this very closely.
- [30:21]
Andrew Parrish
They also listed the Ripple stable coin. Yes, they did.
- [30:27]
Scott Melker
That's the other story. We didn't bring it up, but it says Ripple and Coinbase informally in discussions to buy Circle or usdc. Which is interesting because Circle is supposed to be going public. But I guess one of those could just buy it and keep it private. Must be nice to just be like, let's buy that.
- [30:44]
Andrew Parrish
Well, Circle is smart enough to be involved in these conversations because their IPO would not. Would be suboptimal, given that they give away, like, a large portion of their revenue to Coinbase.
- [30:57]
Scott Melker
I was gonna say Isn't Coinbase basically already owns.
- [31:00]
Andrew Parrish
Yeah, yeah, they are. Ripple's just making it interesting would be the commentary there. I, I here's the thing again about the next 18 months associated with just crypto. Overall, the amount of capital that's going to flow into the space is going to be extraordinary. Why? Because the capital markets have opened up to, to crypto in general. And what does that mean? Well, Galaxy just had an ipo. You know, we've got Nakamoto now. There's going to be a significant amount of IPOs that happen in the space. And that just means that those organizations are flush with cash, like big time flush with cash and another currency which is their now public company and those shares. Right. So the amount of M and A that's going to happen in the space is going to be whiplash type stuff. It's going to happen like crazy. So this is just a little precursor to what's going to happen at Large, you know, over the next 18 months in the space, for sure.
- [32:09]
Scott Melker
Yeah. Next is going to be Gemini buys Coinbase and Ripple. Tell the twins to call me, man. I've got ideas.
- [32:18]
Andrew Parrish
You realize there's like a PR Gemini person like on the other side of the camera for Padgett being like, you can't say anything, you can't come out, smile.
- [32:29]
Scott Melker
You're never going on this show again. I'm sorry.
- [32:34]
Padget Stanko
Oh, gosh. Well, look forward to seeing you both in Vegas next week. Exactly, gentlemen, but, but truly look forward to Vegas next week. I think we're going to see some exciting announcements across the board, obviously. Look forward to being with both of you and, you know, kind of follow up from there and see what. We'll probably have some exciting things to report back on.
- [33:00]
Scott Melker
Yeah, it's going to be fun. It's going to be, going to be huge. Andrew's actually going for a Ripple conference. Not actually for Bitcoin Vegas, but totally.
- [33:09]
Andrew Parrish
On brand for me.
- [33:13]
Scott Melker
I told him it was probably at Circus Circus or like the palace station casino with $1 craps off the Strip, but I knew I'd get in trouble with the XRP people, so I can't.
- [33:23]
Andrew Parrish
Hey, man, listen.
- [33:24]
Scott Melker
That did not at all get in trouble with Charles Hoskinson and the Cardano people yesterday at all. Had some tweets. Had some tweets. Yeah. Every day.
- [33:36]
Andrew Parrish
Well, God, as a journalist, you need to be, you know, you need to.
- [33:39]
Scott Melker
Be right down the middle, you know, just a dude with a channel. Anyways, Padgett, thank you so much. We will see you next Week, everybody. Give her a follow down below. It's right there in the description. And we'll see you soon.
- [33:54]
Padget Stanko
Awesome. Thanks, guys. See you next week.
- [33:56]
Scott Melker
Thank you. Getting in so much trouble lately.
- [34:00]
Andrew Parrish
Yeah. So Page, it's fantastic. Gemini does a great job. But it is interesting, you know, in these moments to talk about stuff and to see what she will and will not talk about.
- [34:13]
Scott Melker
I. Dude, I'm not trying to like put people on the spot. I just. Yeah, I do. I want to make it really uncomfortable actually. She's lovely. It's just like, you know, we've been asking.
- [34:22]
Andrew Parrish
Well, it's a sit down with those.
- [34:23]
Scott Melker
Guys, you know, talk about history with Mark Zuckerberg, things they like.
- [34:28]
Andrew Parrish
Yeah, right. It's a, it's a double edged sword. You know, Gemini does a great job in terms of, you know, when you, when you work with them, when you, when you're a customer with them, when you custody with them, you're in a good spot. Right. Because you're effectively custodying with the Winklevoss wins. And they're awesome, their bitcoin, but at the same time, you know, they're in a position where they're heading towards an ipo. So they're, they keep things pretty tight there over there from a messaging stand. Standpoint. Yeah.
- [34:55]
Scott Melker
Yeah. You know who doesn't keep things tight from a messaging standpoint?
- [34:59]
Andrew Parrish
Yeah, that's right.
- [35:02]
Scott Melker
My segues are on point today.
- [35:04]
Andrew Parrish
They are, they absolutely are.
- [35:07]
Scott Melker
The bitcoin yield algorithm. The numbers tell the story. 20 APY, 25%.
- [35:15]
Andrew Parrish
Yeah, we're, we're going to be all over the bitcoin conference. We're sponsors of the whole whale experience, Whale lounge, whale stage, all of that stuff. Stuff. I mean if you're, if you have a whale pass, you'll, you'll be sitting on our logo or even on the, the, the seats in the, in the whale lounge. So we're going to be everywhere and for us the conversation is going to be about bitcoin yield because there's, there's several ways to go about it. We think the conversation is going to push there as products are built around bitcoin. But most of that conversation is going to be about giving up custody of, of bitcoin, you know, giving it up to a third party, even if it's a bank. Right. So banks can now custody bitcoin. You're, you're going to give it up to them for some sort of yield. That's not what we do. We don't want custody of your bitcoin. We we don't want you to give it up, we don't want you to lend it, we don't want you to leverage it. Bitcoin volatility gives you the ability to create yield in a very significant way without having to give up custody. And that's kind of the whole point of that post is over the last four years, you know, our, our bitcoin yield algorithm has been able to produce plus 20% in annualized yield and give you a 25% KEGR. Whereas currently, you know, over that same four year period, if you just buy and hold, that number is 16. So you know, we get asked all the time, well, what if I just buy and hold again? Buy and hold is the way that Wall street wants you to do things because it makes things simple and you don't outperform them. The ability to use technology that doesn't exist anywhere else is institutional in nature and is making trades for you while you sleep at 2 in the morning, at 5 in the morning. You know, John Deaton's done a great job of talking about things that are happening throughout the day when he's in a deposition or when he's in court, or when he's dropping off his daughter at school. And our algorithms are executing trades at levels that are just simply extraordinary. You know, we take a look at a, a bitcoin chart and we, you know, our algorithm, our arbitrage algorithm, you know, exited a small trade up at 107. And so, you know, take a look at our arbitrage algorithm. It's 2.23x long bias, meaning that every time a purchase is made that you're buying significantly more Bitcoin than whenever, anytime a sale is executed. So yeah, there it is. So currently our algorithms support Bitcoin Soul, XRP and Ethereum. So, so there's the, there's the exit, right? So Sunday evening, the market's going crazy. Nobody knows why, nobody knows what's going on. Are you as an individual sitting in front of your screen saying, well, I know what's going on and I'm going to exit at the top of this green candle going to the upside at 107. The answer is no, you can't do that. Of course you can't.
- [38:38]
Scott Melker
I could.
- [38:39]
Andrew Parrish
And so two things are really important. Yeah, two, two things are really important. One, this is institutional tech that you can't find anywhere else other than arch public. Two, because we believe in this tech so much, we give it to you for free. So if you want to try it before you buy it. Or if you're in a position where you can only use 10 grand per year to, to use our products, you can use it for free forever. Yeah, but if you want to use it at scale, if you want to use it at real scale, you know, talk to us. We have different levels of scale that you can use on an annualized basis.
- [39:17]
Scott Melker
There are dudes who are popping like 400 trades in a day using instances.
- [39:21]
Andrew Parrish
It is now we have people that, you know on Sunday or like 13 trades happened, right? One of our customers, you know, told his wife, hey, we just made three grand in cash because the algorithm while they were eating dinner on Sunday. So it's, it's, it's, it's really cool to watch. We have corporations engaged that want to do bitcoin, balance sheet, treasury type stuff. They have to have a plan, right? Like they can't just say, hey, we're going to talk to our board next week and we're just going to smash by at 105. That's not how it works. It, you have to have a plan. So we do that for corporations, we do it for RIAs. Just give people access to a tool that gives them some set of rules and some set of circumstances that they can then use to and use in the way that they want. So again, these tools, they're not just point and click type tools, right? So certainly we have case studies and certainly we have certain types of settings where people can just use those. And the results are the results. That's why we put out case studies. But the truth of the matter is, is that you can get in there and turn all those dials. It's user driven and it's connected to Trading View. So if you want to say, well, what if I do this or what if I do that or what if I do this here or change this trading View is going to show you, well, this is what would have happened in the last year, this is what would have happened in the last four years. This is what would have happened in the last week. It's going to show you those results and you can dial that in any way that you want. People that get involved with us, almost every week they find a new layer. They're like, wow, I didn't know it did this. Wow, I didn't know it did this. Wow, I didn't know I could use Solana Volatility, grab Cash, yield and put it back into Bitcoin. And now I'm, I'm using another asset to build my bitcoin Stack like it's, it's, it's pretty extraordinary stuff. People love it. And we're going to be talking about it like crazy, crazy at the Bitcoin conference in Vegas.
- [41:27]
Scott Melker
Yeah, let's talk. So, like, let's talk about the, the Andrew Experience, the Tillman Experience that is going to be happening in Vegas. You mentioned that obviously sponsoring all the whale experiences. But there's this area, if I'm not wrong. Right. It's called the deep.
- [41:43]
Andrew Parrish
Huh? That's right.
- [41:44]
Scott Melker
Whales.
- [41:45]
Andrew Parrish
That's right. That's whales. Right. Yeah.
- [41:48]
Scott Melker
Honestly though, whales, they have to breathe at the surface. I'm sure that you. Whatever.
- [41:52]
Andrew Parrish
Yeah. Art is going to have a private suite there and Scott is going to be joining us. And the, what I would call the intimate conversations that we're going to be having with Scott and with some pretty unique guests. Scott can talk about that. It's going to be extraordinary.
- [42:12]
Scott Melker
So far we've got Caitlin and John. I've only done some, you know, it all happens. But Vlad, CEO of Robin Hood, we got Jack Mers.
- [42:21]
Andrew Parrish
Yes. Yep.
- [42:24]
Scott Melker
There's some others that I'm working on. I've only casually worked on it thus far because I'm me and I'll, I'll make the plan like a day before, but it's gonna be awesome. And those will be like, recorded, obviously for podcast and distribution, but also available only to the people in that room who can listen to it while we're recording it.
- [42:41]
Andrew Parrish
Yeah. So, so again, in the room, the experience is going to be, you know, you have 25, 50 people that are in there. You're going to be rubbing shoulders occasionally again with the likes of Scott.
- [42:50]
Scott Melker
First, don't touch my shoulders. I get coveted at every single conference. Don't touch.
- [42:54]
Andrew Parrish
Second of all, you know, Vlad, the CEO of Robin Hood, Jack Mers, Caitlyn Long, John Deaton. These are extraordinary thought leaders and, and, and folks that have done exceptional stuff in, in the world of bitcoin and finance overall, you're going to have the ability to, to have some back and forth with these folks. We're going to do some Q and A stuff and then on top of that, you know, we're going to have an open bar in that space. Yeah, we've got a couple of waitresses.
- [43:21]
Scott Melker
Terrible idea. Let's do that.
- [43:23]
Andrew Parrish
We even.
- [43:24]
Scott Melker
My interviews are going to be so much better by five.
- [43:26]
Andrew Parrish
Yeah. We even are doing a thing where, you know, like for the, for Vlad's Talk, we're going to have a specialized drink that will be color coded for Robin Hood's colors. Right. Caitlyn Long. When she's there, you can imagine that the drink that we're going to be serving there will be very orange. Right? So, yeah, we're going to do some really unique and fun stuff and so interact with us, interact with the people that we have relationships with. Scott's going to be there. It's going to be an exception.
- [43:56]
Scott Melker
Who won the tickets? Who won the tickets?
- [43:58]
Andrew Parrish
Oh, yeah, we gotta. Okay, so we'll announce.
- [44:00]
Scott Melker
I just remembered that.
- [44:02]
Andrew Parrish
Yeah, we'll. We'll announce the winners later today. And you can, you can.
- [44:09]
Scott Melker
Did I just put us on the spot for.
- [44:11]
Andrew Parrish
Yeah, you did. No, no, no, it's, it's. It was a good reminder. We've already, we've already, we've already got.
- [44:16]
Scott Melker
Can you have Tyler call me? Come on, man.
- [44:22]
Andrew Parrish
Yeah, There are some circumstances there. I mean, Gemini had been waiting for the.
- [44:27]
Scott Melker
I just want to be like a, a short guy between two trees having a conversation.
- [44:31]
Andrew Parrish
It's normal.
- [44:33]
Scott Melker
I've interviewed everybody in this space. I've interacted with them on like. But I've just never. It's just never happened with those guys. Like, they're like them and supposed to do Brian Armstrong in June, but that's it. Like, that's it.
- [44:44]
Andrew Parrish
Yeah.
- [44:44]
Scott Melker
You know, it's like, these are my unicorns I'm chasing.
- [44:47]
Andrew Parrish
Well, we, I have a, I have a good feeling that we may be able to pull it off at the bitcoin conference. They will be in close proximity to Arch Public's suite. And so, yeah, it's gonna tackle them. Yeah, come find us. We have some really cool stuff going on there. We have an extraordinary giveaway that we're doing at the bitcoin conference in the whale space. I can't talk about that because it's orange cyber trucks. Well, yeah, it's not. Yeah, it's not. Not cybertrucks from us. And yeah. You know, it's people that. People that end up just us and being involved with us, they're, they're pleasantly surprised at.
- [45:26]
Scott Melker
I have an important question. I may be flying, so I don't know, like, I don't know if I'm coming Monday or Tuesday, but are we gonna do this show from Vegas at 6:00 clock in the morning?
- [45:34]
Andrew Parrish
A hundred percent yes. I mean, 100% yes. Of course we are. How can we not? Right.
- [45:41]
Scott Melker
If I'm flying, it'll be a problem. But if I come.
- [45:44]
Andrew Parrish
Yeah, it would be a problem.
- [45:45]
Scott Melker
My ass up super early and we'll do this. I was like, wait, what we're talking about is literally like, during right now. In a week.
- [45:52]
Andrew Parrish
Right. Exactly.
- [45:54]
Scott Melker
Perfect. Awesome. It's early.
- [45:57]
Andrew Parrish
Yeah, come. Come find. Come find us at the bitcoin conference. You won't regret it.
- [46:01]
Scott Melker
Yeah, we'll see you there. And as you can see there. Arch, I got it here.
- [46:04]
Andrew Parrish
Wait.
- [46:05]
Scott Melker
Gotta do the thing. Arch probably died. It's like. Well, you know, it just works.
- [46:10]
Andrew Parrish
It does. It does. It works.
- [46:13]
Scott Melker
Everyone who's done it is super happy. There's literally thousands of people running this thing on Gemini. No complaints. It's awesome.
- [46:20]
Andrew Parrish
Yeah. People that joined in March and April, they were making purchases at 74, 77, 79, 81. And we're now at, well, 104 and. And going lower.
- [46:31]
Scott Melker
But either way, lower, like, probably like 10. That's all we got for you today. You're just, you know. Cameron. Cameron, I know you're watching. Call me.
- [46:42]
Andrew Parrish
That's right.
- [46:43]
Scott Melker
Let's. Let's do this.
- [46:45]
Andrew Parrish
All right.
- [46:45]
Scott Melker
The banner thing off and do the thing and whatever. Dude. Andrew's great show as usual. Love having Paget on. She's awesome. Somebody said she looked like Princess Kate. Never thought about that, but I saw that in the comments. I could see that. Anyways, come find all three of us next week. We'll be there later, man. Thank you.
- [47:05]
Andrew Parrish
Let's go.