JPMorgan’s Jamie Dimon says he’s done talking crypto, but calls blockchain ‘real’: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Andy Baehr of CoinDesk Indices discusses a new index to track the broad performance of major cryptocurrencies.

Chapters:
00:00 – CNBC Crypto World, Jan 17, 2024
0:24 – Bitcoin and ether sink
0:44 – The headlines
3:43 – Andy Baehr of CoinDesk Indices

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JPMorgan’s Jamie Dimon says he’s done talking crypto, but calls blockchain ‘real’: CNBC Crypto World

Today Jamie Diamond says he’s done talking about crypto the SEC and coinbase face off in federal court and the managing director at coind desk indices breaks down what’s behind crypto’s price moves in the days after spot Bitcoin ETFs launched in the US welcome to cnbc’s crypto world I’m TAA Mel major cryptocurrencies are

Giving back yesterday’s gains with Bitcoin dropping more than 2% by noon EAS it fell back to the $442,000 level ether also in the red it fell more than 1.2% and chain link meanwhile a bright spot for crypto this morning it Rose more than 35% to 1576 okay let’s talk about the top

Stories Bitcoin minor core scientific is marching ahead with its plan to exit bankruptcy the company announced on Tuesday that a US court had confirmed its restructuring plan which would help it exit bankruptcy and relist shares on the NASDAQ by the end of January cor said the plan means existing

Shareholders would get shares in the new common stock it would also see the company’s existing debt paid down entirely core scientific will be exiting bankruptcy just weeks ahead of the having which is set to ramp up the pressure on mining companies as mining rewards get cut in half next the secc

And coinbase are set to face off in federal court over whether the agency’s lawsuit against the company can move forward the southern district of New York set aside four hours divided equally for the two sides to make their case on whether coinbase’s business model is breaking us security laws

Coinbase is hoping to get the case dismissed based on its belief that the SEC is overreaching the agency on the other hand still believes coinbase allowed the trading of more than a dozen crypto tokens that should have been registered as Securities and that coinbase’s staking program should have

Registered with the agency and finally CNBC is on the ground at the world economic Forum in Davos and caught up with JP Morgan CEO Jamie Diamond he’s long been a Critic of most crypto and now he says he’s tired of talking about it but still sees the potential of

Blockchain this is the last time I’ve ever talk about this in CNBC okay so help me God blockchain is real it’s a technology we use it it’s going to move money it’s going to move data it’s efficient we’ve been talking about that for 12 years too and it’s very small

Okay so I think we’ve wasted too many words in that cryptocurrencies there are two types there’s a cryptocurrency which might actually do something think of a cryptocurrency has an embedded smart contract in it and that we can use it buy and sell real estate and move data

That may have value and then there’s a one which does nothing I call it the pet rock the Bitcoin or something like that and so on the Bitcoin you know there’s First of and I’m I’m not trying to make a joke here there are use cases AML fraud anti-money laundering tax

Avoidance sex trafficking those are real use cases and you see it being used for hundreds maybe 50 hundred billion dollars a year for that that is the end use case everything else is people train among themselves uh Diamond also made it clear if you want to invest in Bitcoin

He’s not going to stop you you now my last statement the last time I ever going to talk about Bitcoin is I defend your right to do Bitcoin I think you know it’s okay I don’t want to tell you what to do so my personal advice was be

Don’t get involved but I don’t want to tell any one of you to do is a free country all right for our main story crypto got a new Benchmark today that’s meant to show how the market is doing broadly it’s called the coindesk 20 index think of it like the S&P 500 for

Cryptocurrencies crypto world’s Talia Kaplan spoke with Andy Bear managing director at coindesk indices about the new Benchmark as well as what’s driving crypto prices in the week after spot Bitcoin ETFs began trading in the US this morning coindesk introduced an index which measures the performance of the top digital assets including Bitcoin

And ether I’ll ask you all about that new Benchmark in just a bit but I want to start off by focusing on what has been happening to crypto prices since those spot Bitcoin ETFs went live last week following the sec’s landmark approval of spot Bitcoin ETFs the price of Bitcoin initially jumped above

$449,000 but then gave back gains and this morning was trading at the $42,000 level so what do you think is happening there well uh last week we all gathered around our screens to watch what we call the season finale of the crypto winter and that absolutely did not disappoint there was Intrigue with

The purported hack of the SEC x.com account there was drama with battling statements between SEC chair gendler and commissioner Pierce and there was an exciting but orderly first day of trading as the crypto world and the ETF World kind of did their big production number uh in the end it was a really

Successful launch with a lot of Blockbuster statistics um there were some dire predictions of a real sell the news depression in the price of Bitcoin Bitcoin had been trading in the low 40s before we got very close close to ETF launch day and it feels like it has

Regained some support above that 42,000 level so I think we have to just zoom out a little bit and look at the bigger price trend and see that the price of Bitcoin is pretty stable that being said our Bitcoin Trend indicator is signaling a weakening of bitcoin’s uptrend since

That started back in October interesting now I checked the numbers this morning and all the spot Bitcoin ETFs are in the red since launching last Thursday anywhere between around 7 17% obviously Bitcoin is down since those products launched as you as stutely noted but most of the spot ETFs

Are down more than the price of the cryptocurrency so what do you think is happening there um I think it really depends on when people actually got into the ETFs and at what prices uh I think that what we have noticed is that the prices of the ETFs and the prices of

Their navs or the reference price of Bitcoin have been tracking pretty accurately so we think that investors should feel as if the ETFs properly reflect their exposure to bitcoin again you know hopefully most people are looking at Bitcoin as a as a longer term holding and a two to three or four or

Five% allocation in their long-term portfolios in which case they should be thinking about the future of finance and kind of letting these first couple of days get by us another interesting Market note ether has outperformed Bitcoin recently climbing 16% last week the cryptocurrency is now trading around the

$2,500 level so why do you think ether has been outperforming Bitcoin is it because investors now see a path forward for spot ether ETFs I think that’s a great point and after trailing bitcoin’s really powerful performance in 2023 ether has sort of uh put its suit back

Its uniform back on and gotten back in the game there is a lot of speculation around when the US will allow ether ETFs um in investors who start to think about ether and the ethereum network will soon realize that there’s a staking yield inherent in the price of ether which we

Had coindesk indices measure with a measure called Caesar um and how that yield is actually going to find its way into investor pockets and investor accounts is something which is yet to be worked out so I think there’s a lot of mechanics to get through in the United

States other countries are going through the same thoughts um eventually I think we’ll get there and that will help you know bring a really quite different digital asset to join Bitcoin as the first two kind of Mega tokens to be available in ETF form turning back to the new index along

With the launch the bullish digital asset exchange listed a new Perpetual Futures Contract of the coindesk 20 index what was the impetus Behind these ideas and how does it all work exactly so we’re really excited today because we’re launching the coindesk 20 index Index this is going to be the new

Reference of the digital asset class for everyone for trading for investing and for referencing um you know now that Bitcoin ETFs and soon ether ETFs will be available it’s a great time for investors and advisers and institutions to spend more time thinking about digital assets they’ll soon realize that

There are there’s a wide variety of tokens out there with very different characteristics to bitcoin and to Ether and that there’s diversification um opportunities available uh the coind 20 index is built to reference that new digital asset class in the same way Equity or or commodity indices are designed to reference those asset

Classes but it’s also built to to trade and as you noted on the bullish exchange Perpetual Futures contracts which is a really institutional Crypton native tool for trading assets very quickly and very efficiently launched yesterday we’ve already had more than $10 million of coind Des 20 trade as an index per

Future so focusing on those spot Bitcoin ETFs what was your initial reaction to that Landmark decision did you see it coming and what does the approval of these ETFs signal to you frankly I was delighted by how much drama there was left in the in that last season finale

Episode because this is something we’ve all been thinking about uh for years and uh it’s really uh frankly for those of us who are in the industry and think about All Digital Assets in the digital asset class every day we’re kind of glad

To see a lot of 2023 is uh you know sort of dirty dishes get done and put away uh between the court cases and the lawsuits and the regulator um slow movement and waffling and lawsuits there too and the disposition of uh of bad behavior from

2022 it’s all part of that season which we’re happy to close uh we really love the breadth of uh of the ETFs that are on offer right now uh the grayscale Bitcoin trust conversion leaves it to be really by far the largest ETF available uh we see that they’ve uh filed for some

Follow-on products to make the environment even richer and to pursue different outcomes so now we see an environment where it’s kind of okay to really think about using a Bitcoin ETF in a portfolio other outcomes will be addressed with different objectives and different products coming up in the very

Near future we have some things to share there uh soon um and we think kind of the games of foot uh most investors though once they really get involved and get educated we’ll think what else can I do where can I find diversification and that’s exactly why the launch of the

Coind Des 20 right now is so important what have you been paying attention to since these ETFs started to trade in the US what trends have been standing out to you since they launched I think the most important trend is that you know Bitcoin uh actually the ETFs launched one week

After bitcoin’s 15th birthday and uh those of us who have been watching digital assets for many years realized that this started as a retail trading uh Pastime it’s almost like a hobby for many folks although it was for some it was a very very serious Hobby and institutional adoption has been a little

Slower because guess what institutions don’t have hobbies but people do what we’ve been really noticing is how the institutional Financial framework has come in to support liquidity in many different ways so how authorized participants for ETF companies have come up the learning curve to support these new giant ETFs how the Futures markets

And the spot markets have started to integrate even better and of course offshore where we see a lot of trading In Perpetual Futures which is a real specialist product for crypto uh those have really come alive especially on the bullish exchange uh and so now having index per and really having an index

Level really represents the next generation of um you know of institutional provision of liquidity down through the chain okay that’s all for crypto world today we’ll be back again tomorrow and we’ll see you Then