Today Bitcoin stabilizes after Yesterday's selloff grayscale Zack Pandel discusses the asset manager's new Bitcoin mini trust which began trading In the US this morning and Wyoming Senator Cynthia lumus discusses her Draft bill that would direct the US to Buy 1 million Bitcoin over 5 Years welcome to cnbc's crypto world I'm Talia Kaplan cryptocurrencies are Settling after investors pushed prices Lower Yesterday by Eastern Bitcoin Inched just slightly higher to $663 61 Ether dipped about 610 of a perc just Above $3,300 while Sala sat exactly at $180 now at the time of these prices Investors were awaiting the latest Interest rate decision from the FED as Anticipated the Central Bank decided to Keep rates unchanged 81% of respondents To cnbc's latest fed survey see the Central Bank cutting rates for the first Time in September while 86 6% see a Second cut happening in December okay sticking with markets as We take a look at today's top stories The grayscale Bitcoin mini trust the Crypto asset manager's newest Bitcoin ETF with a much lower fee than gbtc Started trading this morning following SEC approval I spoke with Zach pandle Head of research at greats scale Investments about the new product as
Well as recently launched spot ether ETFs a big day for grayscale with the Launch of the Bitcoin mini Trust now We'll get some more on that in just a Bit but first taking a look at markets We're seeing a bit of a rebound for Bitcoin as of around noon Eastern but Yesterday the cryptocurrency's price Retreated to the $66,000 level following Monday's rally When Bitcoin was trading less than $100 Away from the $70,000 Mark now this Week's moves happening as investors were Digesting several political developments Including Republican Presidential Nominee Donald Trump's speech at Bitcoin 2024 in Nashville over the weekend and Looked ahead to Central Bank meetings Happening this week including the FED Meeting today now we're speaking before The FED decision but what would you say Is driving crypto markets right now and What are you paying attention to well Thanks Talia I mean it's really all of Those macro trends that are most Important and this is just a a huge Moment for for Bitcoin and and for Crypto collectively you have a uh you Know Bitcoin has come to Washington is Part of the US presidential election Debate obviously president Trump former President Trump has given a strong Embrace to bitcoin and the industry but Democratic Party leaders may also be
Shifting stance aspects of the Trump Platform uh may have implications for Bitcoin both president Trump and his Running mate JD Vance have in the past Called for a weaker dollar to support Domestic manufacturing that's the kind Of thing that could also support Bitcoin Over time and as you said the FED looks Ready to cut interest rates the Bitcoin Competes with the US dollar and International market so lower interest Rates tend to be negative for the dollar And positive for for Bitcoin so this Type of macroeconomic environment is the Reason that people own Bitcoin in the First place and we're you know thrilled To see that coming together thrilled to Be able to offer uh new products in this Market Environment speaking of new products Back to your new product grayscales Bitcoin mini trust started trading today As a spot Bitcoin ETF it's essentially a Spin-off of your Bitcoin ETF which Started trading in Jan anuary and offers A lower fee of 0.15% that's compared to a 1.5% Management fee for gbtc holders which is Significantly higher than the charge Commanded by many ETF providers Including Black Rock and Fidelity Now Grayscale's new ETF now marks the Cheapest among spot Bitcoin ETFs what Prompted grayscale to launch the Bitcoin
Mini trust what's the hope for this new Product well the the motivation is the Same motivation that the company has had All along since it got going more than 10 years ago and the the goal is to give A US investors the best possible Efficient regulated safe access to Crypto in their brokerage accounts and Uh more than 10 years ago when gbtc got Started that product and that structure Was the best possible way uh to do that For for us investors the crypto industry And the regulatory landscape around it Has come a long way since that time and Now we believe that we're able to offer New products including the the BTC Product a uh low fee product designed For investors that are new to crypto Looking for a Buy and Hold uh instrument Uh you know this is going to be a great Uh product for for them and so we're Just trying to meet investors wherever They are meet their meet their needs and Provide a full Suite of products for uh Investors to access crypto in a Regulated and safe uh way and so gbtc Will be suitable for some investors and Our new BTC product I think suitable for For many more uh and I would just Mention we did exactly the same uh Strategy for ethereum we have a Long-standing ethereum product the Greats scale ethereum trust the largest Ethereum uh investment vehicle in the
World we also did a spin-off of that Product and so have a low- fe uh version For ethereum under ticker ET so it Couldn't really be simpler and easier For investors to get brokerage account Access to crypto ticker etc for Bitcoin Tier eth for ethereum these are going to Be great products for investors that are New to the industry now of course this Month the first spot ether ETFs hit the US grayscale spent years building a Trust that holds more than 9 billion Dollar worth of ether and now the trust Has been converted to an ETF and is one Of two The Firm offers now that the SEC Cleared the way for these products there Is competition from other asset managers Including Black Rock Fidelity and VC as Investors can turn to the products with The lowest fees I'm seeing that across The board SWAT ether ETF saw negative Net flows in their first week amid Massive outflows from the grayscale Ethereum trust does this concern you at All do you think interest in these Products will increase as time goes on How would you say gray skill spot ether ETFs are performing so far I think it's Been an excellent launch uh so we've Seen terrific volumes for these products Across the the group of nine if you Compare them uh to the launch of the Bitcoin products back in January volumes Are roughly the same once you adjust for
Ethereum's lower market capitalization So compared to to market cap bases We Have basically a similar volume picture As we have uh seen at the start of the Year um as you mentioned we have seen Some uh outflows collectively across the Across the group um gry skill had a 100% Market share uh in these products before Uh this last month and has been at this Game for more than than 10 years we Never expected to remain maintain that Uh type of market share as uh many more Traditional financial institutions are Now getting involved in offering crypto Investment products that being said I am Thrilled with the products that we are Offering to investors and think we are Very well uh placed the larger largest Uh product in the market today are great Scale ethereum trust ticker eth this is The uh largest AUM highest volume uh Product in the market uh and as you said The spin-off product eth uh is going to Be a lower cost option maybe suitable For new investors where Buy and Hold Strategies are are most important so we Feel uh very well placed so we grayscale File applications for other crypto ETFs Now that spat ether ETFs were approved Grayscale also has a salana trust so are There any plans to try and convert that Into an ETF in June VC became the first Asset manager to file an application for A spot salana ETF in the US 21 shares
Became the second issuer to file an Application where does grayscale stand In that regard and what do you think Will happen with those applications for Spot salana ETFs now that spot ether ETFs are Trading for the last 10 years grayscale Has worked to provide the best possible Uh crypto investment access products to To us investors in the context of the Regulatory perimeter that we have in the In the US today so as that regulatory Framework evolves our business will Evolve with it as it has uh over over Time I think over time uh we will work Cooperative with Regulators to see the Sensible regulation for the industry and The the framework for all of these Assets is going to change what that Looks like over the next several months We we can't be Sure now pandel also discussed his Outlook for gbtc and his message to Those concerned about outflows you'll be Able to check out his full interview Over at cnbc.com Cryptoworld all right let's hit our main Story over the weekend Wyoming Senator Cynthia lumus made headlines at Bitcoin 2024 in Nashville when she previewed a Bill that would direct the US to build a Strategic Bitcoin Reserve that stockpile Would be 1 million Bitcoin strong and Funded partly by revaluing the federal
Reserves gold this morning we got a Draft version of that crypto Bill crypto World's t m reviewed the draft of the Legislation and spoke with Senator lmus About how it would work and whether she Thinks meaningful progress can be made On the bill before the end of this Congressional term in January Senator it's wonderful to have You on crypto world today thank you so Much for joining us uh let's just kick It off uh quite simply why are you Bringing this bill right Now well I'm gonna file it uh now so People have a chance to comment on it so It's it's more like discussion draft It's A New Concept to so many people That I want to get feedback about it Between now and uh January the end of The year so I don't expect that it will Be taken up this year but it's Definitely something that should be Taken up next Year well uh it is a New Concept there's A lot of interesting stuff uh in this Draft which your team sent over this Morning so thank you so much for that um You talk about a 5-year period for Acquiring these Bitcoins so it's 1 Million Bitcoins not more than 200,000 a Year over five years tell me about that Time frame and the strategy behind It currently we have over 200,000 Bitcoin uh that are held as fored Assets
In the asset forfeiture program so we'd Start there then we would Convert our gold certificates not our Gold because gold is a hard asset Bitcoin is a hard asset we want to be Able to back the US dollar with hard Assets but we could use our gold Certificates that are held at $42 an Ounce that's the statutory number that Was used in the 1970s uh take them up to Market which Gold is now around $2400 an ounce and Then use that market value uh to convert To US Dollars and convert US dollar to Bitcoin so we would have a diversified Asset allocation uh of hard assets Including gold and including Bitcoin it Not only creates a diversified asset Allocation because we already have US Dollars and treasuries and foreign Currencies it adds another very hard Asset that could could be put in Cold Storage just the way we hold gold in Cold storage and allow it to grow in Market value backing the US dollar if we Held a million Bitcoin for 20 years uh We would have enough money uh to reduce The national debt in half you talk about Bitcoin as being a hard asset tell me a Little bit more About you know the track record of Bitcoin so far you've been very Pro Crypto um for several years now I think That there are a lot of people out there
Even people who who like Bitcoin as an Investment are very forward thinking About it who would push back a little Bit and say that you know it's only been Around for so many years maybe the first Few of those years may not even be Looking at in terms of a track record Because of just the newness around it um But you know you know compared is Something like gold which we know Generally is kind of upward moving over Time Bitcoin is a much more volatile Asset why is it important for the US Economy to be holding Bitcoin Specifically compared to something like Gold or oil and it the answer is because Bitcoin is Scarce uh it uh is O issued every 10 Minutes uh miners mine for Satoshi which Are fractions of Bitcoin uh and and it's Produced B basically on a mathematical Formula until it hits 21 million so the Supply is finite and its scarcity gives It value like a hard asset like gold uh It's uh Immutable uh and it holds even more of The characteristics of a hard asset than Does the US dollar and so from its History which is now 15 years long uh it Has grown about 55% per year on average Yes it has volatility but over time that Volatility is even going to start to Reduce uh because of uh ubiquitous Adoption of Bitcoin there's going to be
So many nodes all over the world that Keep the uh whole Bitcoin blockchain From beginning until current Uh on each individual computer so you Can't hack it um and that helps also uh Uh Define it as a hard asset you said at The top that you don't expect to see This go through this year specifically But you know as we're having this Conversation over the next six months And after that what kind of push back to You or feedback even do you expect to See come out of this conversation well I Think it's really important to put it Out there so people who don't understand The mechanism I just described to you uh They can evaluate it think about it um Validate it or if they think it's Invalid if if they think it's invalid Let us know um we want this feedback uh We think that because the Bitcoin Community itself understands the Technology which is a neutral technology It doesn't have anything to do with Politics um we we think the Bitcoin Community is going to understand this And is going to support this um we think People who understand asset Diversification and holding things on Balance sheets at their current value as That value changes over time will Understand this we think people who Really haven't Grasped what Bitcoin is how much it's
Used around the world how many people Hold it and how it holds the Characteristics of hard assets like Digital gold um we think they're the Ones that need to think about this more So that's why we're going to introduce It and just let people think about it Learn more about it discuss it uh and And get us feedback uh so in 2025 it Will have had enough exposure in the Public forum uh to be ready to go now You'll be able to check out more of that Conversation as well over at cnbc.com Cryptoworld okay that's all for today But we'll be back again tomorrow and We'll see you then [Music]
