Big Banks Admit They Were Completely Wrong About Crypto

0:00Hello everyone. Jamie Dimon has officially capitulated and he changed his mind on Bitcoin. Coinbase just announced blowout earnings and a new ETF is coming that will let you personally invest alongside the White House in the stock market. We're live today from the desk of Anthony Popliano.

0:26Before we get into today's show, I need your help to get to my goal of 1 million subscribers on YouTube. We currently have 35 ,789 subscribers, but with your help, we're going to get one closer. Hit that button right now and let's get into today's show. All right, ladies and gentlemen, everyone knows that Jamie Dimon, he ain't a fan of Bitcoin. He previously said that he would fire anyone inside of JP Morgan if they were caught trading it. But now all of a sudden, Jamie Dimon's changed his mind. He's done a complete 180 and he now says that Bitcoin and cryptocurrencies, they're here to stay and everyone's going to be using it.

0:59Don't take my word for it though. here's Jamie in his own words. I was skeptical of crypto at one point. You were still skeptical. I've gotten away with no damage so far. Crypto is real. It can mean blockchain, stable coins. You have a JP Morgan deposit coin. You can move stuff. Smart contracts are real. All that stuff is real. It will be used by all of us to facilitate better transactions and customers. Now, there's two ways to take this. Some people are going to laugh and scream and they're going to say, wow, Jamie was wrong. Look at how dumb he was. I don't think that's the right takeaway. Instead, I think that this is ultimately a sign of intelligence.

1:29It may have taken him a little bit longer, but Jamie Dimon got more information and he changed his mind. We should celebrate people who think critically and who end up changing their mind. And remember, if you run a big bank, the biggest bank in the world, and you're a banker, you have to serve your clients. And if your clients weren't asking for something, then you're not gonna go and do it. But now all of a sudden, the tone has changed. Lots of people, young and old, people with assets and without, they all want access to this asset class. So Jamie Dimon is following the incentive. He's changing his mind.

1:58He's gonna offer these products to his customers. and the world will keep spinning. Rather than dunk on people on the internet, we should celebrate them changing their mind. And this is good for Bitcoin and cryptocurrencies. But it's not just the big banks that are actually getting in the game. Brett Tejpal, who runs the institutional business at Coinbase, I recently sat down with him and he said two things that I thought was really interesting. He said the banks are all going to eventually hold Bitcoin. And he thinks that Washington DC has been the big catalyst for this year's bull market. Here's Brett and how he explained it.

2:26We have now, let's say, five years of client footprints and patterns. And it's fair to say that Bitcoin is absolutely a gateway. Once you do that, you're likely to own ETH and then progressively other things. More importantly for us, you're likely to elect to do more products with Coinbase. So buy, source, sell, finance, do different things. And so if you build a product platform, the idea is that a singular client will choose to consume multiple products. The rest of world was thinking they had an advantage on the US. In one change of administration, all of a sudden, the US is leapfrogged rest of world.

3:09Now, the rest of world is going, holy cow, Brett, what's happening there? Tell me. What's happening with institutions? Is it true that JP Morgan is really doing JP Morgan deposits on base? Is that really happening? Yes. Yes, it did really happen. And yes, the big banks are finally coming and that's happening. So DC for me is the single largest catalyst. It's triggered everyone domestically. And actually, it's had the ripple effect of it internationally has been super pronounced. Now, when you go ahead and you hear somebody like the Coinbase institutional head talking about the banks getting in the game, Washington, D.C., and the politicians getting in the game, and then you remember that Jamie Dimon is changing his mind, Bitcoin's growing up, it's maturing, and it's now becoming a global macro asset.

4:00But it's not just going to be held by the people anymore. It's going to be the people plus the institutions and eventually the central banks. All of this is part of mass adoption. You may not like it because it gets a little bit further away from the original Bitcoin ethos. But if you want an asset to grow up, if you want more capital to pour into it and you want it to be mature in that mass adoption phase, everyone's got to participate. And that's exactly what's happening. It's good for Bitcoin. It's good for the industry. And ultimately, I think this will be a net positive over the long run.

4:28Everyone knows that Coinbase has long been one of the most important companies in the Bitcoin and crypto industry. Brian Armstrong and Fred Ursham, they started the business back in 2012 as one of the first American-based on-ramps for Bitcoin. Since inception, Coinbase has grown to become one of the leading finance platforms in the entire world, regardless of whether it's crypto or traditional finance. And we saw yesterday just how dominant they are during their earnings report. During that report, Coinbase reported the following,$1.87 billion in revenue, that's a big boy number,$433 million in net income, and$516 billion in assets on the platform.

5:05These numbers are bonkers, mind-blowing. To put it in context, Coinbase has nearly double the number of assets on their platform compared to Robinhood. Coinbase also has enough assets on their platform to be in the top 10 bank list from the legacy system. Think about how big you got to go from 2012 to today to now have more assets than many banks all around the world. It's pretty incredible to see how fast this business has grown, but it is even more impressive to see how large they've become. Crypto is no longer an outcast to finance. Coinbase is proving that crypto companies are likely going to dominate the finance industry for the foreseeable future.

5:41And as if that wasn't exciting enough, Brian Armstrong, he proved yesterday that he understands the retail investor movement better than most public company CEOs. Everyone knows that they know how to service the institutions, but the retail investors, they're still a big part of this business. And that's why Brian Armstrong, he pulled up a prediction market at the end of their earnings call. And he just started rattling off all the words that people were betting on, whether he would say it or not. Take a listen to this. I was a little distracted because I was tracking the prediction market about what Coinbase will say on their next earnings call.

6:11And I just want to, you know, add here the words Bitcoin, Ethereum, blockchain, staking, and Web3 to make sure we get those in before the end of the call. Now, it's pretty cool to see that. And Brian's a legend. I figured stuff like this would eventually happen, but I definitely didn't think it would happen so fast. Brian tweeted later in the day, and he said that it was a completely spontaneous thing. He said someone on their team dropped a Polymarket link to that market in their team chat during the earnings call. And he just kind of went rogue and he just started rattling off all the words.

6:41And it worked because everyone on the internet is talking about it. So regardless of how you think that happened, this is further proof that prediction markets may drive outcomes rather than outcomes driving prediction markets. And frankly, no one should hate a little fun from time to time. So let's go back though and talk about Coinbase as a business. They're accelerating growth. They're driving profits. They're buying more Bitcoin and crypto assets, which they announced yesterday. And they are expanding their product suite into every corner of finance in their pursuit of being the everything exchange.

7:10What a time to be alive. Crypto is eating Wall Street and Coinbase is leading the charge. I've been a shareholder of Coin for a while now through one of the venture funds that I manage. But it feels like maybe me, you and everyone else. We're all super underexposed to this theme. Robinhood is attacking the traditional financial world from the brokerage angle. They're doing a fantastic job. Coinbase is attacking that same industry from the crypto side. They're doing a great job as well. Both of these businesses are gonna meet in the middle and finance is never gonna be the same. I recently saw an analyst talk about White House asset management.

7:44I can't get this out of my head. White House asset management refers to the White House making so many investments in the private sector. They've been buying equity stakes in businesses and rare earths and other industries. And now all of a sudden we have an ETF filing that's gonna allow you to invest alongside the White House. Bloomberg's Eric Bouchanis writes, Roundhill Investments has filed for a USA government portfolio ETF. It's gonna hold all the same stuff that the US government invests in. Basically, the White House asset management tracker. What a country. Now, this doesn't surprise me.

8:17If there's a public list of things that the White House is buying, do you think they might go up? Of course. And so if somebody can go and make an ETF that's a simple one click and get exposure to a basket of these assets, obviously someone's going to make it. And my guess is lots of people are going to go pour capital into that fund. And so it's pretty cool to see that the ETF industry continues to track what's going on in the world, continues to create exposures that make it simpler for investors to get access. And on top of all that, it's fun. And I think that the White House, they're not going to stop investing.

8:47And now retail investors, they're going to be able to invest alongside White House Asset Management. White House Asset Management may be the most important investor in the market today. And now there's an ETF out there that lets you invest right with them. That's it for today's show. Thank you guys so much for watching. Remember, we have 35 ,789 subscribers on YouTube. I need your help to get to a million. Hit the button and I'll see you guys live on Monday from the desk of Anthony Poppliano.