Ric Edelman, founder of The Digital Assets Council Of Financial Professionals, explains how Bitcoin keeps pushing upward.
Transcript:
Caroline Woods: What has gotten Bitcoin to $120,000-plus at this point?
Ric Edelman: There’s an aligning of the stars, Caroline. There’s several things have happened starting a year and a half ago. When we look back to the summer of 2023, when grayscale filed its lawsuit against the SEC, demanding that the Bitcoin ETFs be allowed onto the marketplace, quickly followed by BlackRock announcing it was filing for a Bitcoin ETF. That resulted in the court agreeing that the SEC had acted arbitrarily and capriciously, forcing the SEC to approve these ETF applications. That all happened a year and a half ago in January of 24, and we saw 10 ETFs come onto the market all at once. And that had never happened before. A brand new asset class with 10 new products all at the same time. This represented over the next few weeks the most successful ETF launch in history. And now, 18 months later, that remains the case with well, more than $100 billion invested in these ETFs. So that was the first catalyst. The second most important was the election of Donald Trump last November. Whereas the Biden administration had made it very clear that they were strongly opposed to crypto and were doing everything possible to crush crypto in the United States with an array of regulations that were making it difficult, if not impossible, for crypto companies to engage. The Trump administration has reversed all of that. Donald Trump made it clear during the campaign that he considered the goal of the United States being the crypto capital of the planet, and we have seen him deliver on that promise already. All of the Biden era regulations have been eliminated. The SEC and FINRA, which banned brokerage firms from engaging in crypto, they have reversed that position. The OCC and the Treasury Department, which banned the ability of banks to engage in crypto that has been rescinded. The Department of Labor, which prohibited 401(k plans from allocating to Bitcoin or offering it as an option that has been rescinded. The IRS, which had previously required that crypto exchanges and custodians issue 1099, that has been rescinded. So all of the Biden era prohibitions and cumbersome elements are gone. Simultaneously, we now have a majority in Congress for the first time ever from both parties who strongly support crypto. We already have the genius act, which is the first stablecoin legislation, and all of that is adding up to the final point. Caroline institutional engagement for the first time ever, institutions now recognize crypto as a legitimate asset class. It has gone mainstream. It has the support of the administration and Congress and is now a legitimate asset class to invest in. So endowments, pension funds, hedge funds, family offices, sovereign Wealth funds are all engaging in an unprecedented fashion. And all of it’s resulting in a massive inflow of dollars. And the more money that flows into Bitcoin, the higher the price gets.
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