Today Senate Majority Leader Chuck Schumer boost hopes for new crypto Regulation as Democrats Court crypto Voters the SEC gives the go-ahead to an ETF that promises a 175% daily return on micro strategy Stock and Sylvia jablonsky of defiance ETFs explains where crypto prices could Be headed after recent Volatility welcome to cnbc's crypto World I'm McKenzie sigalo crypto prices Are mixed this morning after new Economic data shows that the US consumer Remains Strong by new Eastern Bitcoin Ticked higher but still traded at $59,000 at the same time ether dipped a Quarter of 1% to 2668 meanwhile madic Rose more than 1% To 42 C okay let's talk about the top stories Bigname Democrats courted crypto voters In a crypto for Harris Zoom call hosted By the crypto Council for Innovation Senators Kirsten gilbran and Debbie sta An hour on the call along with Senate Majority Leader Chuck Schumer now he Made waves when he said that he believes The Senate can realistically pass a Bipartisan crypto regulation bill before The end of the year Schumer said quote Passing legislation this year is Absolutely possible even in these Divided times and added that his goal is To bring together Senators on both sides
Of the aisle to pass sensible Legislation but Schumer didn't indicate Which bills he would support Specifically the Crypt for Harris call Mimic several other Zoom meetings that Have raked in millions of dollars for Dems since vice president Harris Announced her intention to win the Party's nomination now also joining the Call were Senate candidates Congresswoman Alisa slotkin who's Looking to replace the retiring Senator Stabenau and then congressman Adam Schiff looking to win the seat in California next the SEC has approved a Leveraged micro strategy ETF mstx hit us Markets on Thursday morning and the fund Tracks the returns of micro Strat 's Daily performance and because micro Strategy is a major holder of Bitcoin it Also tracks the performance of Bitcoin Too leveraged ETFs seek to amplify the Performance of assets by using debt and Mstx hopes to provide a 175% return on micro strategies Performance now for our main story Crypto world's TAA mckel spoke to Sylvia Jabloni of defiance ETFs The Firm behind The leveraged micro strategy ETF they Talked about the new fun F and Sylvia Also weighs in on where crypto markets Could be Headed exciting news about mstx I want To know why Defiance decided to launch
This fund and why now yeah thanks so Much for having me great to be here it's It's exciting news for the crypto world I would say and and it's a plain old Stock right it's not a coin it's it's Not a it's not a token it's it's just a Plal stock that trades on um you know on An exchange and so the reason that we Launched it is because micro strategy is Essentially you know this this dual Opportunity to get exposure to both the AI trade they have business intelligence Tools data analytics you know they're Part of the AI world and Innovation and Really you know benefiting from that but They also have a massive holding in Bitcoin and it's become a Bitcoin proxy You know Michael sailor is is one of the The big kind of profits and Advocates of Bitcoin out there and I think that People trade a stock because he invests Most of his cash in Bitcoin um and you Know so that's kind of Reason number one We thought the the good you know kind of Like dual partnership between Ai and Bitcoin was cool and didn't exist out There but the bigger thing is if you Look back at the performance we've been Watching this for a long time and really Wanted to be sure that we were you know Seeing it right if you look historically At you know Bitcoin or even just like This year right at the difference Between Bitcoin The Leverage Bitcoin
ETFs the single single you know beta um Bitcoin ETFs versus micro strategy it's Outperforming most of them most of them By three times are more so for example Some of the single stock um single beta Bitcoin ETFs are up you know 20 to 30% And Microsoft or micro strategy is up About 100% year to dat and so it has This weird com you know kind of um Relationship with Bitcoin where it seems To to both track in terms of it's up When bitcoin's up and kind of down when Bitcoin's down but also outperform so we Just thought it would be great to lever That up and give investors the Opportunity to have a different way of Uh getting at Bitcoin And can you say why you do see those Outsized returns like mechanically what Is going on there and you know that Would make somebody want to buy micro Strategy over Bitcoin for the bigger Returns even though they're doing the Same thing yeah I think it I think it Has something to do with the you know Additional propelling of it's almost Like the Elon he's got like the Elon Musk effect right A lot of people love Tesla because of Elon Musk so I think You get some some you know Michael Sailor type of effect I think you get AI Trade right so it's definitely competing In the world of Nvidia AMD um you know Taiwan semiconductors all the different
Semiconductor stocks and and you know um Chip companies and and visual AI Analytic Tech types of companies are Performing really well this year because Of that so I think it gets a little bit Of extra special sauce on top of what Crypto Does so who who is this designed for and Who do you think will be coming to this Fund and is it safe to assume it's like A retail day trader type I mean there Are so many different reasons and ways Now for people to invest in Bitcoin and People do get pretty philosophical about It so who is this fund for yeah they They sure do and I think it's for all of Those people right so I think the Short-term tactical Trader is is Oftentimes the most common type of Investor in these funds you know they're Looking they might not necessarily only Hold it for a day but they're making a Decision every single day as to whether Or not to hold it for the next day so You know leerse ETFs work really well in Trending markets you might have you know Substantial losses in kind of range Bound volatile markets um and and so It's important for investors who trade Leers ETF to understand how they work But over time we've also seen you know The vix has fallen back under 20 again And it's it's um you know we only had a Couple days where it actually spiked up
And was doing anything meaningful and so For for years now we've had very low Volatility in the markets and so when Investors have conviction they believe That you know a particular stock or Index is going to go upward with low Volatility a lot of times they will hold A lever ETF for a longer period of time But you know we always put that Disclaimer out there you should make That decision daily monitor your Positions and understand the risks right Volatility can come back tomorrow So so we've got all these ETFs on the Market and we've seen the track record Between Bitcoin itself and micro Strategy uh what's going on more broadly In the market and I you know this Ultimately gets back to what Bitcoin and Micro strategy are going to be doing for The rest of the year um what is at play Right now I think you know that that Monday um that you know brought shock And a into into that Monday that Monday Um that came after that Friday with the Jobs number right I I think a lot of Investors became a little bit spooked And started selling you had you know That coupled with the um Japan carry Trade which which kind of you know Offset some of the um trading volumes For a couple of days too and so I think Now that we're past that we're back to Seeing that nothing has fundamentally
Chang in the last week or so and you Know there are events that can always Come at a left field but overall you Know the jobs numbers are kind of back To um you know few like um it's okay Kind of levels um the CPI readings were Were good almost better than expected in In some cases you know so we're good on We're good good on CPI we're good on PPI The consumer is slowing a little bit but Still spending sentiment is decent um And we're about to go into rate Cuts so I think that all of this is supportive For the market this is that funky August September period where you know kind of Anything goes tends to be a bad time for Markets but I think that you know at Least in the near term I I earnings are Holding up you know the data is holding Up I I think we have that soft Landing Um we'll see what happens after the Election in 2025 but I think we're okay For now and so that that you know bodess W for risk assets like micro strategy And Bitcoin and and yeah so seasonally this Is kind of a sleepy period we expect you Know September to not be so great and Then things tend to get better for the Rest of the year um you mentioned the Election and we do have that um how much Of a Catal or like how strong of a Catalyst do you see that in this middle Period between now and November um
Obviously when Trump came out and made All of of his big overtures about it That that was a very um those were very Market moving comments that he was Making and of course we don't really Know much about Harris's stance on Crypto but you know in terms of the in Between period is there any part of that Theme that you would be watching closely As a market mover before you know we Actually get the result in November yeah I don't know how much the election is Actually you know going to impact crypto But I do think that there will be this Kind of positive momentum sentiment type Of trade that comes out if it seems as Though you know Trump is really running On that platform and he continues to Support it and he gets elected I think You gets some momentum around that um You know whether or not that actually Changes the the the overall value or Growth trajectory of Bitcoin in the long Term I don't know but I do think if if You get that you know Republican nod There you'll probably see crypto prices Start to Rally around the election you Know on the other hand if um if if vice President Harris comes in and starts you Know toting the the the crypto horn it Then it might do well either way sure um And then in terms of you know a big Break to the Upside when are you expecting to see
That because it is you know we have Characterized this Market as a choppy Period and that chop that sideways chop Could continue for some time um when do You expect to see meaningful break Upward yeah I think I think you know When we get out of this seasonality type Of situation we get that First Rate cut In September September October November Could be interesting for crypto you know You might start to see um and I would Say for the NASDAQ too right I'm I'm Just expecting risk assets to kind of Hold up into year end and crypto should Really participate in that and you know Based on what youi were just talking About if you get that little Tailwind From the election that'll probably give A little you know sense of a Or or you know an assistance for a Breakout anyway in the short Term okay that's all for crypto world Today but we'll be back again tomorrow And we'll see you then
