Deep diving into bitcoin ETFs trading day

CNBC’s Kate Rooney and Bob Pisani join ‘Power Lunch’ to discuss bitcoin ETFs trading day.

WELCOME BACK EVERYBODY, THE DAY HAS FINALLY ARRIVED AGAIN FOR PIT COIN AFTER AN INITIAL FAKE OUT CAUSED BY THAT HACK ON THE FCC, X ACCOUNT. THE FIRST EVER SPOT BITCOIN ETFS RECEIVED THE GREENLIGHT. THEY ARE UP IN, RUNNING THE SWANS SAW BIG SWINGS ON THE FIRST DAY OF TRADING.

MIRRORING A VOLATILE DEAL FOR PROTECTIVE PRICES MORE BROADLY. VANGUARD TELLING US BITCOIN ATF’S WILL NOT BE AVAILABLE FOR PURCHASE ON THE VANGUARD PLATFORM. THEY HAVE NO PLANS TO OFFER FUNDS OF LAURA. MARYLAND ALSO REPORTEDLY TAKING A SIMILAR STANCE, 11 FUNDS HOWEVER STARTING TO TRADE TODAY WITH THE TWO BIGGEST BEING THE

GRAY SCALE BITCOIN ATF, AND THE INVEST GO GALAXY BITCOIN ATF. GRAY SCALE CEO MICHAEL SUNSHINE WEIGHED IN ON THE HISTORIC EVENT EARLIER TODAY. >> INVESTOR SHOULD HAVE CHOICE, BUT LGBT C IS COMING IN EVERY DIFFERENTIATED WAY. IT’S GOING TO BE OUT OF THIS MORNING THE BIG SECOND LARGEST SPOT COMMODITY ETF IN THE

WORLD. IT HAS 28 BILLION DOLLARS OF ASSETS UNDER MANAGEMENT. OTHER ISSUERS MAY TRY TO DIFFERENTIATE ON FEES, 40 PTSD BOUT SIZE, LIQUIDITY AND TRAFFICKERS. >> TRYING TO — AND ALL THIS, WORKS IS KATE REALLY. LET ME BEGIN WITH. YOU HOW DID THESE FUNDS GET UP AND RUNNING SO QUICKLY POST

S.E.C. APPROVAL AND HOW DID THEY INSTANTLY, INSTANTLY ACCUMULATES WHAT THE DAKOTA SAY 30 BILLION IN ASSETS? >> THAT’S A PARTICULAR EXAMPLE WITH GRAY SCALE BECAUSE THEY ARE ALREADY RUNNING THIS PUBLICLY TRADED GRAY SCALE BITCOIN TRUST. IT HAD THAT FOR YEARS, THEY HAD ABOUT 28 BILLION DOLLARS IN ASSETS.

THEY DID WHAT’S KNOWN AS AN UPLIFT. THEY CONVERTED THAT BITCOIN TRUST INTO AN ETF. THAT’S HOW THEY WERE ABLE TO GAIN THE MOMENTUM. OTHERS ARE TRYING TO CATCH, UP BUT THEY DID SOME SEED INVESTING BASICALLY WHERE THEY GOT MONEY FROM PRIVATE INVESTORS BEFORE THEY LAUNCHED THIS, SO THEY WERE ABLE TO

ACCUMULATE BILLIONS OF DOLLARS AHEAD OF THESE LAUNCHES, BLACKROCK’S A GOOD EXAMPLE WHERE THEY WERE ABLE TO RAISE MONEY AHEAD OF, THIS BUT A LOT OF THE BACK AND INFRASTRUCTURE KIND OF BORING STUFF THAT WE DON’T NORMALLY TALK, ABOUT IT WHEN IT IS — HAPPEN OVER MONTHS AND MONTHS LIKE THE AUTHORIZED PURCHASE —

THEY HAVE BEEN PREPARING FOR THIS KNOWING THAT THIS WAS ONE OF THE WORST KEPT SECRETS ON WALL STREET. SOMEONE DESCRIBED TO ME THE OTHER DAY. THEY KNEW THIS WAS, HAPPENING THEY KNEW THEY WERE GOING TO GET APPROVAL. THEY’VE BEEN READY FOR THIS, AND THEY WERE READY TO LAUNCH TODAY. —

>> BOB, HOW EASY IS WILL IT BE TO INVEST IN ONE OF THESE THINGS? OBVIOUSLY, YOU DON’T — THERE PRICED IN SUCH A WAY THAT YOU DO NOT HAVE TO SPEND FOR EXAMPLE, 40,000 $50,000 TO BUY A BITCOIN. >> YES, THIS IS A BEAUTY OF THE WAY IT’S SET UP NOW, AND WHY

PEOPLE ARE IN FAVOR OF BITCOIN, ETFS. THIS IS A SAFER CLEANER WAY TO OWN — IT TRANSFORMED GOALS 20 YEARS. AGO YOU AND I WERE AROUND FOR THE GOLGI — IN 2000. FOR A LOT OF PEOPLE USED TO OWN GOLDEN GOAL, BARS AND GOLD COINS IN A BASEMENT.

ALL THE SUDDEN YOU DID NOT HAVE TO DO, THAT IT WAS A CUSTODIAN TO HOLD IT, FOR YOU AND THAT’S WHAT’S GOING ON WITH A BITCOIN ATF. IT IS NOW CUSTODIAN — THAT HOLDS IT UP, IF YOU DON’T FORGET YOUR, PASSWORD THEY HOLD IT FOR. YOU THAT’S THE KEY, HERE THE

BIG QUESTION FOR TODAY FOR ALL OF US WHO WATCH THIS, WAS THERE A LOT OF INTEREST? THEY’RE ACTUALLY, IS THERE’S CONSIDERABLY NUMBERS HERE. I SEE ALMOST FOUR BILLION DOLLARS IN TRADING THAT’S BEEN GOING ON, HERE AND THERE SOMEONE OR ALREADY. GRAY SCALE HAS — THEIR CONVERTING IN EXISTING FUNDS, THEY’RE 27 BILLION DOLLARS.

LOOK AT I-. SHARES THAT’S A BRAND-NEW FUND. THERE THEY’VE GOT SOME SIGNIFICANT VALUE, THEIR FACILITIES ALSO GOT SIGNIFICANT. VOLUME ARCS DOING PRETTY GOOD OVERALL. I SAY THIS IS GOING TO BE SOME VERY CLEAR WINNERS, HERE AND THERE IS GONNA BE DIFFERENTIATED BASED ON HOW MUCH LIQUIDITY THERE, IS WHAT’S

THE EASE OF TRADING, AND WHAT THE FEES ARE AND YOU SEE SOME OF THESE FEES, THE INITIAL FEEDS HERE ARE FOR CHANGING AND SIX MONTHS, THEY’LL GET FEES UP TO 1%. I SHARES ISN’T 1.2 FOR THE FIRST 12 MONTHS, THAT WILL GO. UP — THAT’S AT ONE AND A HALF PERCENT.

YOU SEE THE TRAVEL THERE, THAT’S A BIT OF AN OUTLIER BUT AS KID HAS BEEN POINTING OUT, THEY CAN BE AN OUTLIER. THEY’VE GOT A LOT OF, MONEY IT’S VERY STICKY AND THERE’S SOME TAX IMPLICATIONS THAT ARE COMING. OUT IF I HAD TO WRITE THIS, I’D SAY INTEREST IS VERY HIGH ON

THE INITIAL DAY. >> THAT’S WHAT I WAS GOING TO ASK IS ABOUT THESE FACE BECAUSE THERE’S ULTIMATELY A CALLED — WHY SHOULDN’T A FEES BE IN A RACE TO ZERO WHICH WILL UNDERMINE THE PROFITABILITY LONG LINE? ONE OF THE TAX IMPLICATIONS THAT CAN ARGUE FOR ONE AND A HALF PERCENT ANDRES GILBERT’S

IS A COUPLE BASIS POINTS FOR EVERYBODY ELSE? >> WELL, AND KEEPS ON SOME GREAT WORK ON THIS. IF YOU SELL, OUT WITH THE AMOUNT OF MONEY YOU’VE MADE OVER THE YEARS, IF YOU HOLD ON TO GRACE, CALE IT’S GOING TO HAVE SIGNIFICANT IMPLICATIONS, TAX IMPLICATIONS. YOU’RE, RIGHT THERE IS A RACE

TO THE BOTTOM JUST LIKE THERE WAS WITH ANY OF THE STOCK ETFS THAT THEY TRADE OUT. THEIR THIS IS HAPPENED MANY — IN THE LAST FIVE, DAY ON FRIDAY NIGHT — SOME PEOPLE HAD ALREADY SAID THIS IS WHAT OUR FEES ARE GOING TO BE, MONDAY MORNING THAT WAS CHANGED.

THEY WERE CHANGING AROUND, THEY ANNOUNCED NEW. FEES THAN TUESDAY THEY CHANGED IT AGAIN BECAUSE THEY ALL LOOKED AT EACH OTHER AND SAID, OH MY GOSH WE ARE GOING TO LOSE. THE RATE WILL CUT THE, NUMBERS AND LITERALLY TUESDAY WEDNESDAY, THEY WERE TEACHING THE NUMBERS. OVERNIGHT — THE NUMBER I HAD BEFORE WAS

WRONG ON THE DAY BEFORE. THINK OF HOW MUCH THE INVESTORS ARE GOING TO BENEFIT FROM THIS. THE BEAUTY OF IT WHEN YOU SEE AVALANCHE PEOPLE INVOLVED. IT’S >> KATE, THAT ALSO RAISES THE QUESTION ABOUT COINBASE. THE CEO WAS ALSO ARE — UNDER, AIR THEY WILL HAVE A CUSTODIAN, THEY WILL BE

INVOLVED BUT — WHO’S BEEN A LONG TIME BEAR HAS SAID THEY WERE GOING TO LOSE MONEY BECAUSE THEY’RE STARTING TO NOW PERSON ON TRADING RIGHT NOW ON THESE ETFS OF COURSE, THEY ARE NOT GOING TO BE ON THEIR PLATFORM, AND THEY’RE NOT GOING TO BE TRADING AS MUCH,

AND PERHAPS THEY WILL GO THE ROBINHOOD ROUTE AND START LETTING ETFS TRADE ON THEIR PLATFORM, BUT IT DOES HAVE BIG IMPLICATIONS FOR THEIR BUSINESS MODEL, THE STOCK HAS GONE DOWN MORE THAN 6%. TODAY >> THAT’S BEEN ONE OF THE BIG ARGUMENT TORONTO COINBASE IS WHY WOULD YOU BE A NEW

INVESTOR, WHY WOULD YOU GO TO COINBASE FACES BY THIS ALONGSIDE ANY OTHER EQUITY AND YOUR FIDELITY ACCOUNTS ARE — VANGUARD IS NOT ALLOWING THIS BITCOIN ETF TO TRADE, BUT THE EASE AT WHAT YOU CAN DO THIS IN A ROBINHOOD OR FIDELITY IS A THREAT TO COINBASE. WE TALKED ABOUT FEES.

COINBASE STILL CHARGES ABOUT 300 BASIS, POINTS AT 3% ON A LOT OF THE RETAIL BITCOIN TRADING. TALK ABOUT PRESSURE, AUNTIES THIS COULD BE FORCING MECHANISM FOR THEM TO NEED TO LOWER FEELS LIKE WE’VE SEEN PLAY OUT IN A BROKERAGE WORLD AS WELL. I ALSO WANT TO MAKE ONE.

POINT I THOUGHT THIS WAS THE BEST WAY TO THINK ABOUT THIS I THINK KELLY WILL LIKE THIS REFERENCE ESPECIALLY, PICKLEBALL. IF YOU THINK ABOUT BITCOIN. BITCOIN AND THIS ETF’S LIKE PICKLEBALL GETTING ADDED TO THE OLYMPICS. CLEAR. IT’S GOT A LOT OF MOMENTUM. PEOPLE LIKE TO PLAY PICKLEBALL. IT’S THIS DIVISIVE THING YOU’VE

GOT THESE COUNTRY CLUB SAYING IT’S TOO LOUD WE DON’T WANT TO ADD. IT PICKLEBALL IS HERE TO STAY, AND DESPITE COIN ETF IS HERE TO. STAY AT THAT WAS AN INTERESTING THING TO THINK ABOUT THE RELEVANCE OF THIS WHOLE THING. YOU THINK ABOUT IT LIKE PICKLEBALL, IT’S POPULAR AND

NOW IN THIS CASE IT’S HERE TO STAY. IT HAS NOT BEEN AT THE OLYMPICS. IT’S A GOOD FRAMEWORK. >> IS IT IN THE OLYMPICS? DID I MISS? IT ONE REAL QUICK THING, PEOPLE ARE ASKING ME ABOUT WHY DON’T THEY TRACK BITCOIN RIGHT NOW BECAUSE THE PRICES ARE ALL OVER?

THESE ARE NEW PRODUCTS, EXCEPT FOR GRAY SCALE. THERE WAS A REFERENCE PRICE THAT THE COMPANIES STARTED JUST AN IPO, THEY PICKED THE PRICE THEY ARE GOING TO DO. IT DON’T WORRY, ABOUT IT IN THE NEXT FEW DAYS THESE PRODUCTS SHOULD TRACK BITCOIN. IF THEY DON’T THERE IS GOING TO BE A PROBLEM.

DON’T USE THE PRICES, TODAY THE REFERENCE PRICES DON’T MEAN THAT MUCH TO WHAT WE’RE DOING. TODAY LET’S START TRACKING THAT AS OF TOMORROW. >> WE ARE OUT OF, TIME BUT THERE IS SO MUCH. I DON’T KNOW HOW WE LIKE IN THE PICKLEBALL ANALOGY, BUT HAS TO SINCE, THE QUESTIONS THAT WE

HAD FIVE YEARS AGO WHEN THEY DENIED THESE ETFS ABOUT WHERE THE PRICING IS COMING, FROM SOME OF THE PLATFORMS THAT THEY’RE CITING AND ALL T