A Rarity Happened: Wall Street Got A New Asset Class In Bitcoin
It is just starting Wall Street is going to take bitcoin and create an assortment of products.
In this video I discuss how Wall Street looks at bitcoin as a new asset class. This does not come along very often. It truly is a rarity. That means we are just getting started with the layering of derivatives and other products these banks will produce. Very little will do directly with BTC which is not relevant to the financial institutions.
▶️ 3Speak
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I don't know if I will be excited for this development. Wall Street getting a new asset class can be good since this educates more people about Crypto, and show that it isn't all bad as the BAYC NFTs. But I am concerned that once they realize how powerful it is, big companies might switch gears and offer crypto left and right. I don't think Hive is ready for that kind of competition yet.
What would be the possible outcome and feedback on Bitcoin investors if World Street buys Bitcoin?
Is there any negative impact of this on hive?
Thank goodness. Now I can finally (easily) direct my 401K to purchase some Spot BTC ETFs without much trouble. Next action is to compare the different BTC ETFs to see who has the easiest redemptions and lowest management fees!
Summary:
In this video, the speaker discusses the role of Bitcoin as a new asset class for Wall Street. He talks about how the limited supply of Bitcoin leads to a constant demand from investors, particularly Wall Street entities. The speaker delves into the concept of Bitcoin ETFs and how they allow Wall Street to have exposure to Bitcoin without directly purchasing it. He also touches on the potential for Wall Street to create derivatives based on Bitcoin ETFs, further expanding their reach into the cryptocurrency market. The speaker emphasizes the significance of this development, highlighting that it presents a major opportunity for Wall Street. He also mentions the broader implications for the cryptocurrency market as a whole as Wall Street becomes more involved. The video ends with the speaker expressing his views on the future of cryptocurrencies and their relationship with Wall Street.
Detailed Article:
The video delves into the evolving landscape of cryptocurrency, particularly focusing on Bitcoin as a new asset class for Wall Street. The speaker highlights the rarity of a fixed limit asset like Bitcoin and its appeal to investors due to its scarcity. He mentions the involvement of miners in token distribution and hints at the potential influence of Wall Street in this space, considering the acquisition of mining stocks by major financial institutions.
The discussion then shifts towards the introduction of Bitcoin ETFs, specifically Spot ETFs, as a way for Wall Street entities to indirectly own Bitcoin. The speaker underscores the crucial role of custody in these ETFs and points out that Wall Street firms are among those who custody the Bitcoin bought through these financial products. He remarks on the novelty of this approach for Wall Street and how it grants them easier access to Bitcoin without directly purchasing it.
Furthermore, the speaker predicts a future trend where Wall Street will continue to develop financial products related to Bitcoin, potentially creating derivatives based on Bitcoin ETFs. He compares these derivatives to options in traditional markets, noting the loose correlation between the derivative and the underlying asset. This discussion sheds light on Wall Street's strategic move into the cryptocurrency market and its potential impact on price movements and market dynamics.
Additionally, the speaker touches on the concept of digital tokens and their relevance in computer science. He distinguishes digital tokens from cryptocurrencies, emphasizing their role as a unit of measure rather than a tradable asset. The speaker speculates on the possibility of digital tokens becoming tradable assets, potentially aligning with Wall Street's interests in developing new financial products.
Towards the end of the video, the speaker reflects on the implications of Wall Street's increasing involvement in cryptocurrencies. He raises concerns about the core principles of decentralization and independence from traditional financial systems, suggesting possible challenges ahead for the industry. The video concludes with the speaker emphasizing the importance of maintaining the values and ethos of cryptocurrency's originators, hinting at a potential conflict between the industry and Wall Street's financialization of the market.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.