In a recent episode of CNBC’s ‘Closing Bell Overtime’, Mark Yusko, the Founder, CEO & CIO of Morgan Creek Capital, shared his insights on BlackRock’s spot Bitcoin ETF application and its implications for the future of both traditional finance and the crypto space.
Yusko began by expressing his enthusiasm for traditional financial services firms embracing the technological innovation that has been driving the crypto space for the last 14 years. He sees the entry of large firms like BlackRock into the crypto market as a validation of the technology and the business models that have been developed around it.
He also touched on the cyclical nature of the crypto market, explaining the concept of ‘Crypto Summer’, a period of accumulation leading up to a significant event in the Bitcoin blockchain known as the ‘halving’. This event, which occurs every four years, is followed by a speculative blowoff and then an overreaction on the downside, known as ‘Crypto Winter’. Yusko believes that the current rally is just the beginning of a new cycle.
In response to the suggestion that the narrative around crypto and Web3 has been lost, Yusko strongly disagreed. He pointed out that the digital assets market has grown from zero to $1.2 trillion in just 14 years, with Bitcoin alone accounting for half a trillion. He also emphasized that blockchain technology is one of the four pillars of the digital age, alongside AI, computer chips, and data.
Yusko further explained that blockchain technology is transforming how we store and exchange value, much like how the internet disrupted media. He envisions a future where every stock, bond, currency, commodity, piece of art, private business, and piece of real estate will be a token on a blockchain. This shift, he believes, will eliminate the need for trust and save over $7 trillion a year, which is currently wasted due to the friction of the trust industry.
When asked about the regulatory landscape for crypto, Yusko highlighted that Bitcoin is regulated as a commodity and is taking the place of gold as the base layer of currency. He sees Bitcoin as the new money on which the future of finance will be built. While he acknowledged that other applications of blockchain technology, such as Ethereum, may have a role, he emphasized that Bitcoin is the digital gold that will underpin the future of finance.