Wall Street's Bitcoin Blindspot with Larry Lepard & David Foley
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Key Takeaways
This episode of The Last Trade centers around the momentous occasion of bitcoin ETFs (exchange-traded funds) becoming a reality, marking a significant point in the asset's mainstream adoption. Marty, Michael and Jesse are joined by Larry Lepard and David Foley t0 delve into the potential impact of ETFs on the market, considering the vast amount of RIA (registered investment advisor) money, potentially around $40 to $100 trillion, that could now easily flow into bitcoin.
The ETFs are expected to bring a wave of new capital into the bitcoin market, which has a large portion of its supply in strong hands, suggesting that the tradable supply is significantly lower than the total market cap. This could lead to a supply shock and substantial price increases. Estimates from industry insiders suggest inflows of $13 to $40 billion over the next three years, a figure some believe to be conservative.
The discussion also covers the macroeconomic backdrop, including the possibility of a black swan event catalyzing movements into bitcoin. The speakers believe that the ease of accessing bitcoin through ETFs could lead to a massive shift in asset allocation, especially if there's an upheaval in the bond market.
Other points discussed include the significant role of the ETF in differentiating bitcoin from the broader "crypto" category, the implications of nation-states and large corporations entering the bitcoin market, and the potential for bitcoin to reach prices of $100,000 to $500,000 in the near future.
Best Quotes
- "There's $100 trillion... that now has the ability to just click a button and buy bitcoin." - This highlights the ease of access and potential influx of capital into bitcoin with ETFs.
- "We're on the last trade, and we just had the last trade of bitcoin without an ETF." - Signifying the historic transition to a new era for bitcoin investing.
- "I think people are going to be shocked at the prices that emerge as a result of that fact." - Discussing the potential impact of limited tradable supply and increased demand on bitcoin's price.
- "I can't see how we're not at $100,000 soon and two to $500 within a year or two." - Predicting significant price increases for bitcoin based on market dynamics.
- "Is this the crossing the chasm moment for bitcoin?" - Contemplating whether the ETF is the pivotal moment for mainstream adoption of bitcoin.
Conclusion
The episode reflects on the transformative potential of bitcoin ETFs in shaping the future of investment in the digital asset. The speakers articulate a strong bullish stance, grounded in the observation of macroeconomic factors, market dynamics, and historical precedence. They emphasize the importance of differentiating bitcoin from the rest of the cryptocurrency market, especially in light of recent events that have highlighted the need for secure and sound investment strategies.
The introduction of ETFs is seen as a gateway for significant capital inflows, with the potential to cause a supply shock and dramatic price increases. The discussion also brings up the broader implications on global economics, monetary policy, and the potential for bitcoin to be perceived as a refuge in times of economic uncertainty.
Overall, the podcast episode captures the excitement and anticipation of a new chapter in bitcoin's journey, where it may transition from a niche investment to a mainstream financial asset, attracting attention from individual investors, large institutions, and possibly even nation-states.
