You know when a big guy gets in the hot tub and sends the water level over the edge?

It’s funny, it’s sloppy, it’s a little disconcerting, but now your shoulders are warm.

Well, Bitcoin may soon experience the financial equivalent of a really huge dude lowering himself into our jacuzzi.

And it might just be… the best thing that could have possibly happened.

Espresso Shots

☕️ Republicans Defend Crypto to SEC 🛡🐘

The Republicans of the House Financial Services Committee wrote a letter to Gary Gensler and the SEC, criticizing the SEC’s proposed rule change to redefine “exchange.”

The crux of the letter concerns Gensler’s repeated attempts to categorize crypto as a security. The Republican authors wrote: “this Proposed Rule is an attempt to assert this personal view as official SEC policy without adequate analysis or justification.”

But Gensler has doubled down on this stance as recently as last week, stating: “We don’t need more digital currency […] We already have digital currency. It’s called the U.S. dollar. It’s called the euro. It’s called the yen. They’re all digital now.”

Though the letter itself is a well-worded and thoughtful examination of Gensler’s biases and limitations, the back of the last page includes a crudely drawn cartoon of Gensler with stink lines wafting off of him.

☕️ Bitcoin Mayor Joins Presidential 🗳 🪙

On the morning of June 15th, Miami Mayor Francis Suarez announced his candidacy for President of the U.S. on Twitter, on Thursday.

Suarez is sometimes referred to as the “Bitcoin Mayor” for his attempts to turn Miami into a crypto hub, in addition to his novel decision to accept his mayoral salary in BTC.

Suarez announced the launch of MiamiCoin in 2021, but the token lost 95% of its value in 2022 due to FTX contagion, and trading has since been suspended.

But despite MiamiCoin’s failure, Suarez is still bullish on Bitcoin and crypto. In a 2022 interview with Coindesk, Suarez maintained his optimism. "[P]eople ask me the same thing about bitcoin, the fact that it's lost more than 50% of its value, but that doesn't change my feelings about the fundamental technology.”

Though Floridians may have mixed feelings about Suarez creating a new identity for Miami as a crypto hub instead of its currently awesome reputation for speedboats, Spring Break, and cocaine.

☕️ Binance Layoffs Preceding as Expected 🔽😢

Due to costs surrounding upcoming litigation, Binance.us has begun cutting down its workforce.

Reports on the number of staff let go vary, and Binance.us has yet to release an official number.

However, roughly 50 people across Binance.us’s legal, compliance, and risk departments were fired, according to a Reuters report. But anonymous sources insist the number of people cut from its 487-person workforce is far higher.

It looks like things will only get worse for Binance’s “U.S. compliant” branch as this case unfolds.

Cruelly, the courts are considering letting Binance.us remain active if the company changes its name to “Binance.sus.”

Spilling the Beans

A Financial Titan Enters the Bitcoin Arena 💪 👀 

When a Bitcoin whale moves, it’s big news.

When one of the largest Bitcoin holders engages in a massive sell-off or even simply moves their assets, it can create a ripple effect that alters the entire market.

So, what happens when a new player is poised to enter the Bitcoin market that’s several times the size of the largest Bitcoin whales?

BlackRock, the world’s largest asset manager, just filed an application with the SEC to launch the iShares Bitcoin Trust. This is an ETF that would enable investors to enjoy crypto exposure via one of Wall Street’s biggest names in the game.

An exchange-traded fund or “ETF” is a hallmark of institutional investing. An ETF measures the price of one or more digital assets through an index and appeals to investors through tax benefits, generally lower costs, and trade flexibility.

Two common kinds of ETFs are spot ETFs and futures ETFs.

And BlackRock is filing for a spot ETF, with Coinbase acting as its crypto custodian.

A Bitcoin spot ETF allows investors to invest in Bitcoin without all the hassle. They don’t have to set up a wallet, work through an exchange, or store keys. Essentially, they’re investing in Bitcoin “on the spot.”

But what does this mean for crypto, and what does it mean for you?

On a cultural level, having the world’s largest asset trader go all-in on crypto is a huge step toward widespread legitimization.

Even if you haven’t heard of BlackRock, you’ve certainly heard of the companies involved with this firm.

BlackRock’s top three holdings are Apple, Microsoft, and Amazon. Additionally, BlackRock owns large swathes of Tesla, Google, and Meta.

To have a financial titan like this step into the Bitcoin market has massive implications for Bitcoin’s liquidity.

As a quick refresher, Bitcoin’s liquidity is generated through the buying and selling of Bitcoin. In short, the ability to convert Bitcoin to cash on demand.

But Bitcoin’s liquidity has dried up as of late. This was in part due to months of U.S. bank failures, rocking the market with volatility despite Bitcoin’s reputation as an inflation hedge.

Additionally, the ongoing, very public debate over crypto’s American regulations has done nothing to help trade activity.

But BlackRock opening up a Bitcoin ETF would plunge countless investors and funds into the space, and potentially send Bitcoin’s liquidity to unprecedented heights.

Also, having BlackRock more active in crypto and bringing with it the funds of those well-established corporate superpowers could serve as a normalizing force to quell some of Bitcoin’s market volatility.

Though, we shouldn’t get ahead of ourselves.

Historically, every Bitcoin spot ETF application has been shot down by the SEC, even ones from similarly large and powerful investment firms, such as Grayscale and Wisdom Tree.

So while this could fundamentally change everything, there’s still a chance that BlackRock’s filing will be rejected — especially since the exchange BlackRock is filing with, Coinbase, is currently facing legal action from the SEC.

So, let’s pony up for a double-wide seat and some seatbelt extenders, there’s a big fella looking to board this crypto train.

Meme of the Day

All eyes fixed on the SEC now... 👀

Crypto 101

Bitcoin Futures ETF: Unlike Bitcoin Spot ETFs, not every Bitcoin futures ETF application has been shot down by the SEC.

Notably, ProShares was approved by the SEC. Why? Because Futures ETFs are fundamentally different from Spot.

Futures trading requires investors to simply make a deposit. It’s quicker, but leaves investors vulnerable to more exposure.

We can only surmise that the SEC’s hesitancy towards Spot trading is that it’s usually geared toward new investors, and the SEC seems determined to “protect” the naive from crypto.

The Last Sip

The Last Sip: Okay, it’s no secret that we’re kind of dorks here at Coffee & Crypto. But as dorks, our radar’s been going off as we looked at some of the world’s largest investment firms today. Are these finance bros actually… dorks themselves? Look at the names!

Grayscale Investments: Oh, you’re telling me it’s just a coincidence that this firm is named after the leprosy-like disease from the “Game of Thrones” series?

Wisdom Tree: Clearly a reference to Yggdrasil, the world tree, from which Odin hung himself and sacrificed an eyeball to attain infinite wisdom.

BlackRock Financial: If you ever played “World of Warcraft” you know about Blackrock Depths, the dragon-filled dungeon that is home to the Blackrock Clan of orcs, who have ashy, volcanic skin instead of the classic green. You’re telling me they learned that in business school?

Stay Caffeinated,
Coffee & Crypto Team

That's all for today! If this email got you hooked on our unhinged crypto takes, be sure to get a full dose on Twitter @GetCoffeeCrypto.

If you find yourself smiling at any of our dumb jokes, or even *learning* something - make sure to share this newsletter with your friends!

If you get 10 friends to sign up - or even enemies, we don't care - we'll send you a swag box with some epic Coffee & Crypto merch! Just hit the Click to Share button in the section below to get started!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.sub