‘Historic’ day for bitcoin paves blueprint for ethereum ETF: crypto investor Brian Kelly

A volatile day for Bitcoin as 11 new ETFs made their debut most of the new instruments dropping today Arc and the Franklin Bitcoin ETFs among the biggest losers only two eeking out gains let's bring in Fast Money friend and cryptocurrency investor Brian Kelly on the appetite for Bitcoin ETFs Brian joins us on the fast Line BK good to see.

You what did you pop champagne I mean how' you celebrate this yeah very early in the morning 9:30 a.m. New York time that's a little too early for BK to be popping champagne but it still was a pretty exciting today um considering the fact that you know bitcoin's been on this trajectory from the backwaters of the financial world to being called an.

Index for money laundering and today it finally actually becomes a new asset class that finally retail investors have a way to invest in in their own broker account I mean we were looking at some of these historical charts of of Bitcoin and in the past year it's up 160 plus per BK are we looking at those days of extreme volatility being over as Bitcoin.

You know resides in in more port folios out there does volatility get dampened and therefore the the swings get dampened and maybe the gains are dampened I you know what I think there's a good argument for that and that's something that I've always thought over time people have said hey Bitcoin can't be a real currency because it's too.

Volatile and my report to that was well wait until we get actual financial instruments wait till we get options and Futures and a and a full market around it and you have people that actually want to sell it as a hedge that want to use options as a hedge that will likely reduce volatility over time I think that's a 3 to fiveyear process but at.

Some point a volatility junkie like BK will get bored with bit Bitcoin BK say how to Brian for me big fan as you know so the gold ETF when it was coming out I remember the excitement around it for months leading up gold ETF comes out price went up and then it went sideways for months if not lower we saw a move up to 49,000 today only to give it all back.

Is there a chance I know the answer to this to a certain extent that this is a short-term High in terms of Bitcoin oh c certainly right I mean at this point in time you have to say okay why is somebody going to buy Bitcoin besides hey I just want to have as a part of my portfolio you got to have the macro Tailwinds which we do although.

With that CPI print today that is maybe a little bit of a headwind if you think the FED is going to be higher for longer but certainly you know you it is going to change from just the accumulation story that'll still be part of it but then the actual investment thesis around it will start to come in and we have had what Bitcoin up 100 like you said 160% I.

Can't blame anybody for taking profits up that up that much hey beaks um you know there used to be a saying I think by you Bitcoin people like to own your coins or hold on there something like that so what do this announcement do to that right if a bunch of normies like guy and me are going to go buy some you know Fidelity Bitcoin ETF and hold it in.

Our in our IRA and that much out you're defining Normie well that's that's what the kids say you know I'm just saying but you understand where I'm getting at BK like so like is there are there two different things buying a piece of a Bitcoin on on a coinbase wallet versus owning uh you know a Fidelity Bitcoin ETF in their brokerage account so yeah.

So just for the record Dan I don't think you're normary I think you're quite abnormal so don't cut cut yourself any slack there yeah but anyway when it because the thing you're talking about is not your keys not your Bitcoin and it's the same if you think about a gold bar right if I own a gold bar it's in my safe something happens I can go and.

Shave off a little that gold bar and buy some milk with it same with Bitcoin if you hold it in your own wallet you can go out and buy something with the ETFs with gold and Bitcoin if you actually need those coins you can't go to Black Rock and say hey give me the coins just like you can't go to Black Rock and say hey give me the gold so it is a.

Different type of investment and I do think investors should know the difference one you don't hold it physically if you own an ETF if you own it in your wallet you own it physically BK last question they're GNA be really mad at me for asking one more question but how did you trade this going into the the ETF launch and how.

Are you trading it now are you anticipating that we will see continued pullbacks at this point as more and more people get onboarded in this and and maybe some money does shift out because some money was in Bitcoin for the ETF launch yeah no there there certainly was and that was part of the investment thesis that I had you know coming into.

This year that as this ETF ramped up you'd get that Euphoria the way that I traded is I start to look around at some of the other coins and you look at how strong ethereum was today so I think eyes are going to be on ethereum and saying hey maybe ethereum is the next one that is going to get an ETF its Supply is actually decreased this year.

And if you stake it at coinbase you get a 3% yield in quotes um so that actually looks a little more attractive to me today than Bitcoin does

Sharing is caring!