Are you ready to learn what the next Frontier in Crypto is? You're about to find out in this video and I'll tell you 99% of people I guarantee it. Are not paying attention to this right here. This could be a massive game Cher Way Beyond Any the crap anyone's talking about today when it comes to cryptocurrencies. But first, let's use an example to teach you about this and then you'll open your eyes and go, Oh my golly Ready Here we go.

Okay, so we're on the notepad. Here's what we're going to do. We're going to take the stylus and we're going to make an example here. Let's say you have $100,000 to invest and let's call this A that's after tax.

Okay, so you've already paid your taxes on it. You've got $100,000 to invest. So what do you do? Well, you want to be an investor who takes let's say, out of the top 30 coins and tokens that exist, you're going to pick your favorite 10 of those. So that way you feel like within the crypto space, you are a diversified investor that's pretty reasonable.

This is something that a lot of people do that way if one or two of them get rugged, or one or two of them do extremely well. At least your portfolio is somewhat Diversified within the crypto ecosystem. Obviously, you know there's stocks, There's real estate, there's your income. We're just talking about crypto here.

Okay, let's keep it straight. so let's say that to be extreme here: one of these coins all of a sudden doubles. For whatever reason it goes to it goes up basically $90,000 So now all of a sudden, your entire portfolio which was $100,000 with 10% in each coin or token is now a $190,000 portfolio. But the problem with this is one of those coins or tokens is is worth about 47.5% That middle token right there.

Actually, it's 52% I Read that backwards. so that's worth about 52% of your portfolio. And then all of a sudden everything else is only worth about 5% of your portfolio. That's because you've got nine of these.

It'd be about 5.2 to make that math easy. The point is, you're way out of freaking balance. right. Way out of balance.

So what is the natural thing for you to do? well? The natural thing that a normal Diversified investment manager portfolio manager would do is they would sell the excess of this particular token. So if we have $190,000 for 10 tokens or coins, we need to get everything to $199,000 So we're going to go through. and we're going to buy $99,000 of each of these. And that means we need to sell $81,000 of the extra 100K runup, right? This is how you have a diversified portfolio.

There's just a big giant problem with this. You now have to pay freaking taxes on that $81,000 And let's say because it's crypto, it's shortterm and then you got some state taxes to pay as well. you pay 30% fed. Let's say an average of 10 Federal uh, or or state, rather, uh.

even if you call it five, whatever, let's take off 35% %. Okay, 30 + 5 35% Well, now all of a sudden we're only left with $52,000 So if we sell this, we're not left with a $190,000 portfolio anymore. We're only left with $152,000 portfolio. Which means thanks to freaking taxes, instead of going to 19,000 in each of these, we're only going to a balance portfolio of about 15 in each.

Now don't get me wrong, that's great. You're you still went from $100,000 to150 ,000 That's great. You're a great investor. You've done a fantastic job, but it could have been $190,000 It could have been 190.

But wait a minute. Kevin Is this just would a Coulda Shoulda No. And that's the thing. It's not what a could have Shoulda It could be $190,000 through a very, very, very simple tool.

A tool that is actually coming to crypto. When you see what this tool is, you're going to go. Oh my. God I Want me one of those? You're ready to see what that tool is.

It's very, very very, very simple and it's coming to us. That tool is an ETF an exchange traded fund. Why What does an ETF allow you to do well for the I'm an active ETF fund manager I have an ETF I Know how this functions I Just don't have a crypto ETF Cuz it doesn't exist yet for this. but it's coming coming But what does a crypto ETF or any ETF allow you to do? well? An ETF allows you to go in here and do something that's kind of like the real Estate 1031 exchange.

We literally did this this summer. So this function exists. For example, this summer we had somewhere around $3 to4 million of gains in some stocks we wanted to shave. so we exchanged them into other stocks.

And because we did an exchange rather than a sale, we saved over a million dollar in taxes. That let the entire pie stay bigger. That's what we're talking about here. So how do you do that? Well, the way you do that with an ETF and this is what's coming to crypto.

Okay, the way you do that is basically you go to these people called APS Okay, the ETF managers. They do this for you. They go to an AP an authorized participant and they say hey yo AP We got $90,000 of token 2 or stock to. whatever it is that we want to sell, we want to turn that into nine different tokens so we could rebalance our portfolio by putting nine into each of these.

Well, because this is a trade or an exchange. Rather, we're exchanging this basket right here for this basket. It is not a taxable event. The IRS says this is okay.

Why? Why is this okay? It's simple. It's okay because when Vanguard was created and they wanted to constantly rebalance the S&P 500 or the NASDAQ, they didn't want to pass tax consequences onto the investors all of the freaking time when they rebalance just because one stock uh, goes up. So this you can do today in stocks again I Know that because I run an actively managed ETF Yes, it's listed on the NASDAQ. It's very simple, but this video isn't to pitch the ETF.

it's just to tell you that I understand at least to some ENT how these ETFs work. Which that now gives me the perspective to say. This is probably coming to Crypto because we know BTC is about to get an ETF. Well, what's next? Ethereum will get an ETF Well, what's going to happen after that cardano doino polka dot? You see where I'm going with this? They're all going to either end up getting their own ETFs or you're going to get an ETF that just creates basically the S&P 500 for crypto.

Except it's not the S&P 500. it's the C500 or the C50 right? The crypto 50. whatever. Now, you have an ETF that has an allocation for each of these, and if one of them doubles, for whatever reason, the ETF can actively rebalance that one back down, spread the gains to the other ones without passing taxes onto the investor.

Now, if the investor ends up selling C50, Well, yeah, OB Obviously, at that point, they have to pay taxes, but while those reallocations are occurring, somebody would be able to have exposure to crypto without actually paying freaking taxes on the runs. Now that's really, really good. That's different from tax loss harvesting as well. Tax loss harvesting would be if one of these goes from 10 to zero, right? and then you close out that position.

Uh, and then you offset that with some gains in another stock that is just washing out losses. You, you still lost money. like when you're tax loss harvesting. Yeah, there's a tax strategy there, but you're still losing money.

Okay, and that sucks. That is very different from having gains and not paying taxes without losses to offset them. So my belief is that when the C50 comes to crypto, uh, whether it's the top 50, the top 10, the top 20, whatever it is, that's when you actually can get broad, mainstream adoption of crypto. That's when actually people look and go now.

Damn, that's what I like. a way to diversify which is smart and a way to avoid paying taxes. which is also smart and a way to invest in various different crypto assets. Damn, that sounds good.

that's coming. I will bet that's coming within the next year. So buckle up! I'm pretty excited about that and I'm going to be watching for that because I'm trying to play a little bit of 4D chess and see what's coming in the future. not just what's happening in the next few weeks we want to look down the road and go I see which direction this is going in Anyway, You want more perspective? learn more about everything I have to offer at Meetkevin.com or just subscribe to the channel and we'll see you in the next one now.

I'm going to press this here button and I'm going to play a disclaimer because I have to. Even though I'm a licensed financial adviser, real estate broker, and becoming a stock broker, this video is neither personalized Financial advice nor real estate advice for you. It is not tax, legal, or otherwise personalized advice tailor to you. This video provides generalized perspective information and commentary.

Any third party content I show should not be deemed endorsed by me. This video is not and shall never be deemed reasonably sufficient information for the purpose of evaluating a security or investment decision. Any links or promoted products are either paid affiliations or products or Services which we may benefit from I personally operate and actively manag ETF and hold long positions in various Securities potentially including those mentioned in this video. However, I have no relationship to any issuers other than House Haack nor am I presently acting as a market maker can not advertise these things that you told us here I Feel like nobody else knows about this? We'll We'll try a little advertising and see how it goes.

Congratulations man! you have done so much. People love you, People look up to you Kevin PA there financial analyst and YouTuber meet Kevin Always great to get your take.