And now let's get to the big story breakdown.
Bitcoin falling below 112,000 while falling below 4000 for the first time since early August.
Now the SEC's updated standards could boost demand for products tied to crypto like Salon and Dogecoin, the first new products under these rules to debut in early October.
Meanwhile, the CFTC is considering tokenized assets including stablecoins for derivatives collateral.
This move is.
By crypto executives and CFTC acting chair Caroline Pham announced that the agency will work with stakeholders and is seeking feedback until October 20th.
While joining me this morning at the exchange is Andy Bears, CFA, head of product and research at Goins.
Andy, great to have you here.
Thank you so much for joining me.
And let's start with that announcement by Chair Pham about collateral.
This is something that maybe Folks who are individual investors don't fully grasp, but the ability to use stablecoins as collateral for derivatives is such a major thing.
It's what we get what we get asked about a lot when we talk about derivatives users.
If you're a crypto native trading firm, one of the hardest or most irritating things to have to do is to off-ramp your value into dollars to be able to post collateral.
All that that collateral can yield something.
That onboarding and offboarding of money, even if it's dollar based or dollar neutral, is an extra step.
So that would be a major advance, and we think that that would help really get the crypto markets moving even faster.
So we applaud that kind of initiative as well as the other great initiatives that the CFTC and the SEC have put their heads together to do.
But let's take a moment and do our breathing exercises, right?
We had a nice big inhale for a.
6 months as the crypto market was strong and the rotation from Bitcoin to ether and then to Solana gave us a nice broad rally.
We had a lot of good news over the summer.
We had IPOs on the floor of the New York Stock Exchange here.
We had excellent new regulatory initiatives and regulatory progress with the regulators and with the legislative branch, and we had all-time highs for Bitcoin.
We had a 4 year all-time high for ether back in.
In August and then we had a continuation of that rally.
We have DAS.
Now it's a lot of that news has come out.
It's time for an exhale.
The market is trying to find purchase for new positive sentiment.
The Fed's kind of done its first cut, and the second one is kind of already priced in.
We have a soft equity market and soft sentiment market, so this might be a temporary exhale, but again, we have to remember after an exhale comes another inhale.
Yeah, and given all the headlines that we're digesting this morning, it's good to take a deep breath, isn't it, Andy?
So hard to believe, but Q4 is right around the corner.
Only a few more days recently I saw a Countdown clock to Thanksgiving as well as the Christmas holidays.
So go to your local drugstore, right?
You're starting to see candy in the aisle and you think, oh gosh, and October is typically a time of volatility in many acid classes, so people are starting, you know, to Be a little bit more wary about things.
We go back to our idea that asset class allocation rather than trying to pick timing and tokens is the best way to keep a long term outlook.
We actually since we spoke last, the GLDC, the grayscale crypto coin decrypto 5 ETF started trading here on the floor of the New York Stock Exchange, and that's been a great way for investors to allocate to the asset class.
So we Applaud that kind of a direction of typical prudent asset class investing now available in crypto with index funds available in a single wrapper.
You did point out end of 3rd quarter.
The last quarter and the last two quarters have been pretty strong.
We had great breadth in the market.
We had Ether Power, a lot of the crypto market rally.
It hasn't been a solely Bitcoin story, so we couldn't really ask for much more as we. here and look ahead.
The market's in a really strong place.
Yeah.
And speaking of looking ahead, Andy, I know that we will be missing you for the next 2 weeks, but it is conference season around the globe.
That's right.
So give us your take on what you expect to see coming out.
Given all the progress in the United States, it's funny, we used to have to go around the world to get good news for crypto, and now we've had plenty of good news right here on US shores.
So people will be making their way around right now.
Korea Blockchain Week.
There seems to be a pretty good Korean contingent here on the New York Stock Exchange this morning.
Korea Blockchain Week Token 2049 in Singapore, DOS in London.
It starts a very heavy crypto season with new capital coming into the space, better regulatory clarity and support in the United States.
We think it's going to become a much more US story than it was even 12 months ago, so it'll be really exciting to see the content, the financialization, the integration stories.
It should be.
Should feel very different this fall, so we're expecting a lot of progress there.
Yeah.
And Andy, finally, before I let you go, we started out with meditation, so let's wrap up with laundry as in laundry list.
So that's right.
Give us your take on how macro is being factored into the catalyst affecting the crypto market.
That's right, it's obviously the Fed's been a little bit politicized here, yet we have very high interest rates.
We have 10 year treasuries which are lingering over 4%.
We have the stablecoin market trying to come in and become the new biggest customer for US Treasuries, which we think is a positive step as well, but it's going to be hard to ignore the Fed and it's going to be hard to ignore sentiment.
We think that there's also going to be a lot of new crypto ETFs listed here on the New York Stock Exchange and other equity exchanges in the next month, so there'll be a lot of variety.
It may be a time for patience, but again, with a long term outlook and a broad allocation.
We think that investors, you know, can can still hang on to their conviction about investing into the asset class.
Just don't try to time things too tightly because there's a lot of fast moving pieces these days.
Yeah, absolutely, Andy.
Well thank you so much for joining us and we'll be speaking to you after you return to New York.
I look forward to it.
Thanks.
