“What we should try to strive for is not tokenizing an asset but actually making sure that the legal tender is actually represented on the chain.” – 05:05

Yuval Rooz, CEO & Co-Founder of Digital Asset, joins Remy Blaire at the New York Stock Exchange to discuss the burgeoning global stablecoin market, which has recently surpassed $280 billion. 

Yuval shares his perspective on the implications of the Genius Act, emphasizing the positive impact of regulatory engagement on the industry. He notes that the support from the U.S. administration and regulators has encouraged clients who were previously cautious about adopting blockchain technology to move forward with confidence.

The conversation shifts to the U.K. and its current approach to stablecoin strategy. Yuval explains that stablecoins have proven to be a successful on-chain use case, prompting governments worldwide, including the U.K. and South Korea, to consider legislation that aligns with the evolving financial landscape. He asserts that as the U.S. accelerates its regulatory framework, other countries are beginning to catch up.

“Bitcoin is a stored value natively based off the proof of work chain. It does not generate yield, unlike ETH, unlike Solana, unlike some of these other altcoins.” – 02:32

Thomas Chen, CEO of Function, joins Remy Blaire to discuss the increasing institutional adoption of Bitcoin and the implications this trend has for the cryptocurrency market.

Remy opens the segment by highlighting the growing interest from large institutions and “whales” in Bitcoin as a treasury reserve asset. He notes the concerns raised by Bitcoin maximalists regarding the potential risks associated with these entities, particularly the fear that a mass sell-off during a market downturn could lead to a significant crash. The discussion also touches on the contentious issue of lending Bitcoin for yield, which some believe contradicts the fundamental principle of private ownership.

Thomas shares insights into the current accumulation phase of Bitcoin, revealing that digital asset treasury companies have collectively acquired around $100 billion in BTC, with MicroStrategy at the forefront. He emphasizes the critical question of what these companies will do with their Bitcoin once the accumulation phase concludes and how they can deploy it in a productive manner, akin to cash management.

“The biggest story of the year has been the rotation out of Bitcoin into Ether.” – 01:35

Andy Baehr, Head of Product & Research at Coindesk Indices, joins Remy Blaire to discuss the market’s performance over the past few months, noting that despite some anxiety, the summer has been quite fruitful. Bitcoin’s price has increased from $109,000 on Memorial Day to nearly $113,000, alongside all-time highs for Ethereum. They discuss the implications of the Genius Act’s passage and the excitement surrounding major IPOs, including those of Circle and Bullish.

Andy introduces an intriguing analogy, comparing the current market dynamics to a washing machine, where various factors are influencing sentiment. On the positive side, they note regulatory support, strong trading volumes, and continued adoption of cryptocurrencies. However, there are also concerns about Bitcoin’s recent stagnation and decreased blockchain activity, which has led to a cautious mood among investors.

As the conversation transitions into the back-to-school season, Remy addresses new investors considering entering the crypto market. Andy emphasizes the importance of understanding the fundamentals of Bitcoin and Ethereum, as well as the broader implications of blockchain technology. He advises potential investors to consider their ability to actively manage their investments versus opting for index products.

Looking ahead, they discuss key catalysts to watch for after Labor Day, including interest rates and regulatory developments. The market remains sentiment-driven, and they highlight the importance of staying informed about macroeconomic factors that could influence crypto prices.

“We’re looking to what is a decade-long, if not longer, opportunity to rebuild the global financial system on different decentralized rails.” – 01:36

Joseph Chalom, Co-CEO of Sharplink, joins Remy Blaire at the New York Stock Exchange to discuss Ethereum’s recent milestone of reaching a market cap of $500 billion. This achievement marks a faster ascent than that of major companies and even Bitcoin, and it comes alongside a significant doubling of gains for long-term holders. The conversation begins with Remy highlighting Ethereum’s record high of over $4,900, driven by substantial accumulation from institutional investors and whales reallocating capital from Bitcoin to Ethereum.

Joseph shares his insights on the post-Jackson Hole rally, noting a prevailing sentiment that the market is moving towards a dovish stance, which could lead to increased capital infusions. He emphasizes the long-term opportunity that Ethereum presents, particularly in the context of rebuilding the global financial system on decentralized rails. Joseph explains that while Friday’s market performance was positive, Sharplink is focused on a decade-long vision for Ethereum’s potential.

Remy prompts Joseph to clarify the differences between Bitcoin and Ethereum, especially as Ethereum celebrates its 10th anniversary. Joseph describes Ethereum as a decentralized, programmable network that facilitates instant transaction settlements, contrasting it with Bitcoin’s primary function as a store of value. He points out the significant adoption of stablecoins and tokenized assets on the Ethereum network, which has seen a historic growth in DeFi activity.

“For most investors, the right thing to do is to build your position through a dollar cost averaging strategy.” – 02:58

The segment opens with a discussion about a recent flash crash in Bitcoin, which sees its price drop below $111,000 after a whale sells off 24,000 Bitcoin. This significant sell-off triggers forced selling and raises concerns about the market’s stability, especially in light of recent comments made by Federal Reserve Chair Jay Powell.

Remy welcomes Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, to provide expert insights on the situation. Matt acknowledges the short-term volatility in the market, noting that August and September are historically challenging months for cryptocurrencies. However, he emphasizes a long-term bullish outlook for Bitcoin, projecting a compound annual growth rate of 28.3% over the next decade. He points out that institutions are expected to need to acquire over a trillion dollars’ worth of Bitcoin in the coming years, driven by rising concerns about debts and deficits and an improving regulatory environment.

The conversation shifts to Ethereum, which has shown strength against Bitcoin, rallying 5% in the previous session. Matt mentions that while the derivatives market for ETH is signaling some overheating, the long-term outlook remains bright due to increasing institutional interest in stablecoins and tokenization.