Hey, this is just a quick update that it looks like the last step in the ETF approvals process is rolling in. We're still waiting on the SEC approval, but we're just now getting the notifications that we were expecting actually to happen after. uh, the market closed today and they're already starting to uh, roll in. We are, uh, getting a statement from the SEC that they're going to release a statement on the incident yesterday.

the Hack That OCC Ur when the sec's account was compromised personally. I Think somebody logged in and took a scheduled post and posted it a day earlier because that post looked a lot like something the SEC would have said. But that aside, the approvals we're getting right now are the CBOE listing approvals. Uh, and these are these are called new issue notifications and pretty much all of them are listed on there.

Uh, so it doesn't seem like there's any kind of discrimination between, uh, what kind of uh ETFs are expecting to get listed? So these are those that have applied here. Let's just quickly put a check mark by uh, some of those that we're looking at on the list here. So I've got CBOE notifications coming through here for Ark B We've got it for there's another one here. H Hike H Y K Well, these are okay here.

Hold on here, that's the best. C Okay, got it. Uh, Fbtc, there we go. We've got that.

We've got Hles on here. Uh, these are all again with the CBOE. This is the last step before the SEC comes in and says hey, we're Gucci So we're still waiting which we expect over the next few hours here. the SEC to approve.

Uh, the Bitcoin ETF But this is like like you don't really get the CBOE approving listings. Uh, until it's going to happen so you've already had multiple people come out and say like for for example, the former director of the SEC Kathy Wood Uh, Multiple folks are saying, look, we don't think the hack's going to delay anything. Not only that, but Kathy's planning on holding a spaces later, which we'll be reviewing that as well the SEC claims in their statement. By the way, that the FBI is investigating, uh, the nonsense that happened.

But what what else do we have here on this list? So uh, btco, we've got that on this list. We've got BTC W Uh, where is that There we go? That's the wisdom tree that's on here. Uh, a few others as well here. EBC I see that one on here I don't see see Burr on this list yet? uh bit I don't see bit and I don't yet see ibit either of those but those could be coming.

but these I definitely see on the list. Uh, and again, this is the last step. So what? These are CBOE listing notifications. Again, you expect these listing notifications to generally come in the after hours the day before.

uh, you know a new issue is going to to trade. This is coming a little bit early. Uh, which is again, just reiterating that today is probably the day if I didn't make it clear yet. Kathy Wood Doing this, you know spaces in the after hours which we cover is probably just trying to align with what uh, you know what what this indicates right? Like, here's the letter that uh, that Ark got for example so CBOE uh and they actually uh, uh, it's it's a letter that gets sent from the CBE CBOE to the SEC and they say hey, like regarding the as an example, Arc shares BTC Bitcoin ETF Here's the Cik number to whom it may concern.

be advised that the CBOE Exchange has received an application uh, dated December 20th, Uh 2023 for the above referenced issuer and has approved the following: Securities for listing on the CBOE Bzx exchange. Uh, so that's where the these ETFs are going to be listed. Uh, there are a few different exchanges that you can go to you can go to. Uh, the um, what's it called the NASDAQ ARCA exchange? Uh, sorry, NASDAQ ARCA I totally blurred those together.

The New York Stock Exchange Nysse ARCA is where you can list ETFs. That's where I have an ETF listed. For example, you could list on the NASDAQ Uh, or you could list on the CBOE uh, um B. Well, as you see here Bzx Exchange so that's another place you can list these and so you're you're This is the the absolute last clearing before the SEC approvals which which is exciting because it basically like this is the last thing that the SEC would need to go like.

All right, post the press release right? So so that's the last thing you're really looking for is now a press release from the SEC Now I Want to see what the uh what the stock market is doing because the CBOE I don't think much? Actually yeah, we've had no no major reactions right now. mostly because I think markets like I mean even look at the reactions we got yesterday right? So go to BTC We got more of a reaction out of Ethereum quite frankly than we got out of Bitcoin yesterday. it's it's essentially like 99% uh, 99.9% approved. Once the CBOE comes out and says yeah, you know we're we're we're listing your your fund.

Uh so uh, you know we go back. Let's go back. Quickly Here to, uh, the after hours yesterday afternoon. Boy, come on, keep scrolling back here on Weeble just to get to yesterday afternoon.

There we go. This is the volatility you got after the the sort of leaked released look at how limited that upside pressure was after the Secc's tweet that it was approved. Now it's possible that there was just skepticism, but that's very limited movement here. Uh, it is worth noting at the top of the next Candlestick It is a movement of about $1,100 but that didn't even last for for but maybe 10 minutes or so before going negative.

So a lot of the actual announcement especially now with the CBOE notifications uh is basically built in. Uh, now the question is how much success are these ETFs going to have and I think that's where it comes down to uh, everybody's sort of thought of like hey, are you going to invest in the ETF We find this very interesting. Uh, so maybe we'll run a poll here. but anyway, actually you know what, let's run a poll but these sort of approval notifications really big deal.

Uh, let me run a poll quickly here so we can see and I'm also reading off. uh yeah I just got another notification CBOE says Fidelity wise origin Bitcoin fund we start chating. Thursday uh these updates are continuously rolling in here. Uh, okay.

good. So then we have uh and what I'll do is once we actually get the final final sign off which now is is all but certain we'll go live again. But I wanted to give this quick update on the CBO CB notifications here and then I also want to run a quick poll. So uh, let's do this.

Let's just see I mean I think this is useful if you're looking to trade I think it would be useful to see this are you going to Oh I didn't mean to go members only? uh well, whatever, it doesn't matter. Are you going to invest in the Uh Bitcoin ETF uh instead of holding uh, Crypto? uh, yourself? right? Yes. I will buy the ETF shares. No I won't buy the ETF shares.

Okay, so to any. I Just started that poll. So I really want to survey the audience here and see what you all think: Are you going to invest uh in these? ETFs uh or are you going to hold crypto yourself? Remember that and I think this is an understated benefit of these ETFs uh as these approvals start rolling in, Uh, one of the I mean I think it's a really big deal. You get Cpic insurance I mean I covered this morning.

What? I think will happen to Coinbase stock and Bitcoin Price action. Watch that video. If You haven't seen it yet. It's a pretty good video at the same time.

Obviously, Check out the gold courses on building your wealth because they're freaking awesome. We're going to be dropping even more new lectures soon on building your wealth with real estate. uh, investing entrepreneurship, creating a business? Whatever. But uh, look at these poll results so far.

so I've got about 729 votes here. Let's do another 30 seconds of polling here as we're getting these: Uh CBOE listing approvals Again, that is that is your like. Part One to a part Two approval for these crypto ETFs I Just want to be exceptionally clear, we don't have that final rubber stamp from the SEC but you can't get the rubber stamp from the SEC until you have these. And we were expecting these notifications after hours.

We're already getting these notifications. So very, very exciting. Okay, so we're almost at a thousand votes here. Almost almost a third of y'all have voted.

That's awes Awesome! Uh, okay. somebody here writes cold storage for me. hold BTC Cold Storage ETF in a retirement account. Interesting, Somebody writes not your keys, not your crypto Somebody else says sold my um uh micro strategy and moved into coin and Riot I Think a lot of people are probably going to do that uh with cash redemptions.

Will Black Rock be buying Bitcoin for their ETFs and boosting the transaction Revenue Well, I I think that you're going to get Market maker. Okay, so this is is pretty complicated. There are few things here. First, whoever custody the actual underlying Bitcoin is going to have to buy the Bitcoin right? So if there's demand for the Bitcoin ETF shares worth, let's say $100 somebody has to go buy $100 of Bitcoin.

But does that make bitcoin price go up? Well, it only goes up if you don't have an offsetting sell of 100 Bitcoin of of uh uh, you know, Bitcoin uh. on let's say the chain or whatever because then you're just offsetting the Demand right? The real: the question is not what are the inflows going to be into the ETF. The question is what are the extra inflows going to be in the ETFs. The extra inflows in the ETF will lead more institutions to buy Bitcoin so they can custody it A and B so they can Market make it and C so they can trade it.

Okay, so these are three different things. You have crypto custody which is just holding it because you had ETF demand. Uh, you have uh, crypto trading. uh and then of course you have the um, uh, I know I forgot what the third thing I just said.

But the point is trading. uh oh, Market making right? So Market making is actually a big deal like Market making is is a very interesting third one. Let's write these down. so I don't forget them again.

Uh, I Got them at the tip of my head. But you know sometimes when I'm live they don't come out so smoothly. So let's write this down. So the three three sources of demand? Uh, after ETF Okay, so one is, uh, the actual actual ETF shares.

Uh, then you have two. uh, and this has to be I'll explain that in a moment. Then you have Market making. Then you have trading.

Okay, so this this black rock could really be in any of these. Uh, trading is a big deal. Uh, I guess I You could actually say de this would be the investing part right? actual? This is the investing side versus trading. Uh, And then it's worth remembering that this number one only matters to the extent that is a net positive only.

Okay, that's the only thing that matters. It has to be a net positive. So again, you get $100 of net buying of an ETF share, but $100 of net selling of Bitcoin on coinbase. You did nothing right You? You did nothing for the price of Bitcoin You did not create create demand.

However, the ETF The whole idea is that you are going to create net positive demand because so many more people are going to be interested in adding uh a a crypto to their portfolio. whether it's their retirement fund or whether it's you know I Mean think about this way. There are a lot of people that will not buy uh, any kind of security or whatever uh, or or commodity or whatever if they can't get insurance. And so, uh, obviously Sipc doesn't cover Commodities but it covers ETFs And so my understanding is these: ETFs which ETF shares or Securities should be covered by Cpic.

Cpic is a really big deal for people because again, up to $500,000 of your assets, your securities would be covered. So if your brokerage goes bankrupt like like right now, if you swipe up on Robin Hood you don't uh on on uh on crypto, you don't necessarily have Cpic insurance. You might have a different insurance that Robin Hood provides to you, which might emulate Cpic but you don't have Cpic insurance. You swipe up on Robin Hood on the Bitcoin ETF like Arc ETF.

Well what happens? Well, you have Cpic insurance. So if Robin Hood goes bankrupt, you can put a claim in yo Cpic. Give me my you know, 100K back or 69k back in Bitcoin that Robin Hood squandered and they're like yeah, no problem Here you go right? That's the point uh of of having the insurance. Now you could also go insure theoretically crypto yourself that you have on a hard wall.

but then you have to pay for it whereas with Cpic, you get it sort of built into the whole process and built into everything. But again, these are CBOE approvals not SEC approvals yet. but this is literally The Exchange so understand this as well. I Know this is like tricky because a lot of crypto folks uh and totally understandably crypto folks don't really maybe understand ETFs as as well and that's okay.

Uh, but let's try to think about this. so you have an exchange. Okay, so that's the exchange. An exchange could theoretically be uh well I mean it is the NYC and NASDAQ and the CBOE right? These are exchanges.

and then of course you have un like unregulated exchanges. Uh, unregulated would be like uh, like a binance or like an FTX right? So these would be your unregulated exchanges and then obviously these up here would be your regulated exchanges. and then guess, uh, yeah? there we go. Guess who regulates these? Uh, these exchanges at the top? Well, right here.

these are regulated by what's known as the SRO Uh, Well, I guess I Guess these are Technic Let me cl. this doesn't matter. These are Sro's They're their own regulatory organizations, but the SEC covers them. There's another regulatory organization called Finra you may have heard of before.

They don't regulate exchanges. Finra is just a type of SRO and so are these. These are Sro's The point is, they're all under this regulatory umbrella. Uh, that is managed and supervised by the SEC Uh, Which right here, there's no one.

Okay, nobody like supervises these. So that's that's other than the corporation itself, right? So these bottom ones, these are very what I would say is free market. Uh, and then that's why you don't have insurance. whereas up here you get the benefit to the extent that you like it.

Regulation and Cpic right? So this helps. Uh, an ETF is obviously going to be I Mean it's it's literally in the name exchange listed right? We forget. when we say ETF we forget, it literally stands for exchange listed. So uh, and these shares are not actually Bitcoin right? They're just.

they're like a micro strategy. They're like a micro sailor. They're literally like hey, I own a bucket of let's say 100 BTC We'll call that my bucket, you know. And then I have this bucket and I'm happy and I'm going to go to you and go want uh, one share of my bucket You know and then you're You know the first thing that you should ask is like, well, how many shares are there and then if like, well, you'll get one share out of 100 well then you know you're getting 1% of the bucket.

That's what an ETF is. That's really all it is. But why does that matter for Market making? Well, because when demand comes in for an ETF suddenly market makers want to fulfill that demand so they could actually buy Bitcoin inducing that demand themselves so that they're able to Market make easily. So that way if larger, uh, ETF buy orders come in and suddenly you know the ETF Managers need to set up a bunch of creates and redeems the market.

M Makers are able to do that. Market makers are often in the ETF World by the way known as authorized participants. So if you ever see that that phrase authorized participants I'm not going to write it all out. Uh, those are market makers for ETF shares.

They do the creates and redeems. So they're literally the people that are over here. like yeah, I'm going to create more shares for an ETF Keep in mind, a lot of people get this wrong about ETFs Now that the CBOE approvals are rolling in, a lot of people get this wrong. You can't really short an ETF for spite like I Have an ETF and some people.

Fortunately, very few people, but some people will leave a commentary like I don't like Kevin So I'm going to short his ETF Like all you're doing is like you're not shorting me. You're literally shorting every underlying asset. So you're basically shorting Nvidia Tesla Intel Taiwan semi am whatever. right? It's like you can't You can't Sentiment: Uh, play an ETF that that doesn't work.

You can sentiment play the underlying assets which could be the entire stock market maybe. or like the S&P 500 or the NASDAQ or Bitcoin right? But you like individually, these ETFs should not. There should be no difference, Uh, really in price between these ETFs other than where they decide to list. So like we have these lists of ETFs that are coming up, they could all choose different prices, right? Like, you could have a starting price of $25 for the Ark one or $10 or $50 or $100 or $20 You could pick whatever you want.

Uh, so so that's something that's worth noting. Uh, and as far as the Incash versus creation models, okay, this is very complicated. I I I Skipped this because I didn't know that people would care about this. But okay, we're I'll give I'll give in my opinion a very simplified example.

So let's do this. Let's draw it out really quick. So I'll just put a little title. So So people can kind of scroll to it and see it incash.

uh model. Okay, let's put that right up here. I'll put some quotes around it. There we go.

Okay, Incash model. So really, really, really high level purposefully trying to keep stuff out. Uh, there's uh, the incash model and then there's the like in kind or or uh, you know, shares model. So let's say you run an ETF and you're like yo I want a 100 shares of uh of this ETF and it's 100% apple, right? So let's assume it's 100% apple and a create comes in for 100 shares of Apple Well, we could take you know what's Apple trading for 185 time a 100 we could take uh, $188,500 comes in.

Okay, so that's money that comes in. Uh and then the AP takes the money and says great, We're going to create uh, 100 shares of the let's call it the Apple ETF just for Giggles right? So we're going to create 100 shares of the Apple ETF and we're going to, uh, give those shares. Uh, give to uh, you know, the the market maker or or the the broker or the custodian or whatever. It'll end up at the custodian, the person holding the shares.

So we'll give them to the custodian. And then there's like this book entry method of accounting to say like you own those shares So basically you take $188,500 you go buy. you want Apple shares. So you're going to buy it via let's say an Apple.

ETF Uh, nobody has those shares available. So they create the 100 shares. Those 100 shares go to like the Dtcc and you get a little note on a spreadsheet somewhere that says you own the 100 shares. Okay, that's that's an example of this.

So cash comes in, they create the share, they give it to the custodian. Well over here. It's somewhat similar in that the cash comes in but rather than the cash, This is my understanding of it. Okay, so I'm going to do my best.

but rather than the cash coming in to do the creates basically uh, you have you have banks that say uh, how am I going to write this banks will come in and say rather than wait for the demand we'll just go buy a crapload. okay Banks or asset managers go by a ton of BTC uh and then that's like separated and then the the you know demand comes in. maybe for the BTC ETF and they they don't have to go out in the market and buy it, they've already bought it. Okay, the the purpose of this in my opinion, the only reason they do this in my opinion is to separate.

Uh, like to basically make it easier to supervise for the SEC. Think about the benefits of this. Okay, if cash comes in and then I instantly create the ETF shares and we send them to the custodian. You own the ETF shares.

Fantastic. Okay, efficient market. We did that fast. But then the SEC has to look and go.

Okay, was that $188,500 money laundered? Uh, you know what kind of Market implication did that that have? Like, how did that move the market over here? How did that move the market over there? That's called supervision. Okay, it's harder to supervise when stuff moves fast. In my opinion, the reason they are doing this in cash model is because the SEC could see. okay you Banks you bought a bunch of Bitcoin right? Okay, let's let's look at it.

and I literally think this is like the SEC like put the glasses on. Okay, so y'all were able to go to the market and buy that. Okay, we see the transactions. Ah, okay, we see where the Bitcoin is.

Okay, so you're saying you're not going to have to go to the market and buy more Bitcoin to to run an ETF You're just going to sell shares of the Bitcoin you already have. Yes, Okay, we can supervise that We can be convinced by that. I Think that's why Now not only are you getting these uh, you know CBOE approvals that are just now rolling in uh as we've been live here, uh, but also uh, this being the precursor to the Sec's rubber stamp at this point. Uh, but I believe that's why they went with this in cash thing.

Uh, if anything, it just it just accelerated. it just moved up the demand for Bitcoin. So from like a Trader point of view, it kind of means that the ETF create and redeem process has sort of already happened. Like the demand to fill up the coffers has already happened.

and the way you get more demand is if ETF demand exceeds what's already in the coffers I I Hope that adds some clarity here, right? Uh, let me see some questions here. Okay for for the market making Theory Okay, so for the market Mak Theory that's interest. Okay, where does that come from? Well, usually when you Market make you have an inventory so you could be a market, anybody could be a market maker You' be like I got a th000 Bitcoin I'm going to Market make okay and then you have a th000 Bitcoin and and like $100 million of cash. Let's just say and you're like oh okay, somebody wants to sell Bitcoin yeah I'll buy that Oh okay, somebody wants to buy Bitcoin sure I'll sell from my inventory.

that's all Market making is it's Market making it sounds so complicated it's really not. Uh, let me explain it in a very simple manner. Keep in mind this is the way that I teach real estate entrepreneurship. Uh Property Management rental Renovations It's all in in a simplified way.

You want to learn all this stuff. The gold course is a great way to get started. Comes with lifetime access to the course member live streams. This morning, we did an analysis on Celsius.

You can get my full opinion on Celsius as well as Kroger And of course we do. We do analysis every single day, so there are hundreds of analyses in there. Uh, you could see those all when you join the course member live streams or the Gold course, you can get in. If you want to go super detailed, there's the stocks and psychology, money group, the zero to millionaire real estate property management.

Go check those all out. Link down below. Uh me, Kevin.com Just go to Meek Kevin.com If you want to bundle up, email us at Staff Atme Kevin.com But here's just a simple way to understand a market maker. Imagine you want to buy Cake in RuneScape Okay, you go to like uh I don't know uh uh.

the the market in Ardon old school RuneScape Let's go over here. Uh, the easiest way to understand a market maker here. Okay, it's just a throwback to my childhood. Okay, uh.

so here here you go. So you go to the market and uh, you got a Marketplace If if nobody is selling anything and you want to buy something, you could get screwed because you might go walk in the middle. go buying cake like I'll pay $5 for cake and nobody's there. You're like, how about $10 and nobody's there? There's literally no market and so one person walks by and goes I don't know I'll sell it for 50 bucks like well I need cake? So I guess I have to pay $50 for your cake Right when you have a market maker.

A market maker is nothing more than a person who's standing at these like vending booths. and then they compete against each other. So like this one might sell. You know, rugs and this one's selling rugs.

let's say, or or you know, whatever. uh and um, they can now compete against each other to get your business. And that way if you show up at this Market you're like yo I want a rug? At least somebody's there selling it and there's a competition for that market price. So Market making has this like really evil connotation.

uh that? it's like super bad. but Market making is actually like really, really important. Uh, you need market makers to, uh, get people. Quite frankly, the best price at this point.

Like in the if you want if you want to know what no market makers looks like, trade after hours. You know how you get crappy prices when you trade after hours for stocks. Welcome to Finance 101 No Market Making Yeah, that's usually done through like Ecn which is where they just directly match up your orders and you could get a hosed on the pricing because there there's no Market maker. So uh, this gives you a little about uh, a little bit on uh yeah.

Mikey Here says: I do armor trimming for free. Trust me. Please trade. Not a scam good one.

Mikey uh Market Making is somewhat like creating a liquidity pool. Uh, yes, exactly. Uh, won't that create redeem process happen through Coinbase and reflect trading volume boost? Uh, let's think about that. Where could that create redeem process? No, not necessarily I Actually think that happens on uh at a at a broker dealer.

So I Do not think that happens at Coinbase. I think um, that would happen at a broker dealer because what you're doing is, you're basically saying you have the asset you want me to create a security out of thin air that we could then sell based on an underlying asset. That that has to be done by a broker dealer. I'm pretty sure.

And Coinbase as far as we're all aware, is not a broker dealer. So Coinbase gets cut out like I I don't I don't know I don't think people realize it. but and I'm not trying to like like shorting coin I'm not short coinbase now I'm about to go short Coinbase Okay, I'm like I might go short before the closing BT Um, it's not that I don't like Coinbase, it's that I think the ETFs literally just take the business away from them. just saying.

Okay, that that's all I'm saying I I think they literally take uh, trading volumes away from them like the people watching this video are probably a lot of y'all are probably like look I got a hardware wallet like I want to understand the mechanics? You're different from somebody who's like you know, like Grandma sitting at home going yeah, digital gold. oh if that's what the kids are into these days, buy the ETF yeah like there's a different level of sophistication between th those things, right? Uh, carer Quin says stop fting my bags I'm sorry I'm giving bro I'm giving you just a heads up. Okay, like would you not appreciate that as a potential perspective and I don't know that it's going to go down right I don't know that it doesn't. it doesn't have to go down I could be wrong.

Uh, I've been wrong before I'll be wrong again. I'm just going to give you that perspective and then you can make your own decision. But uh, that is something important to know about these CBOE approvals here. Uh, now again, this is just part one.

So I expect to go live honestly, probably at like 1:30 or like 2:00 like somewhere Like let me put it this way, if I'm the SEC right now, you know what I'm doing I'm doing this. You know what you're waiting for. Market Close Gary Gendler SEC Folks over in the Crypto world, If you're watching me right now, have a cup of coffee on me. Well, not on me because that's bribery.

That's bad. Have a cup of coffee and we can like cheers the coffee together. Uh, but but I don't think you're really doing anything right now. like I think the approvals are lined up, everything's ready to go.

but they're not going to do it while the Market's open because you know that's volatile? Uh, news creates volatility. You know how like in the stock market, they they freeze the stock market pending news. Okay, like you need the markets to be able to digest information. So usually you do this stuff after the market closes.

so the Maret Maret closes in 55 minutes. If I'm the SEC I'm like yo look I'm working in in, uh, on the East Coast uh I Want to get the hell out of here by 5:00 So I'm approving this sucker between 1: p.m. and 2 p.m. California time or 400 p.m.

and 5:00 p.m. So I could go home and have dinner Frankly, my analysis. Okay, good luck everybody, We'll see you later for the full approval.