You've been able to trade crypto 24/7 365 for years, and that trend is coming to every single market, every single asset all around the world. We're going to tell you about that and more on The Daily Wolf today. Let's go.

What is up everybody? Welcome to The Daily Wolf on Yahoo Finance. I am your host, Scott Melker, also known as The Wolf of All Streets. I hope that you're all having a wonderful Tuesday because I have some bad news for you if you are a customer of Bitmart.

Don't want to ruin your day, but Bitmart becomes latest crypto exchange to shut down. So that's not the big story. We already had reported on that alongside the failures of AscendEX and BitMEX. And look, look at that handsome guy that was in that article. Who was that? Uh yeah, we have Bitmart shutting down. Like I said, the story though is that customers can't seem to get their funds off of the platform. Tale as old as time, this reminds us of that 22 cycle when a number of platforms shut down declared bankruptcy and user funds were stuck. Now,

users are reporting that their withdrawals are blocked. One guy said, where's my $10 million? Imagine that. You got $10 million on Bitmart and you can't get it off. But what happened here was a Chinese account officially from Bitmart tweeted also that employees had been unpaid and that there were financial problems.

Then the tweet was removed and the founder, Sheldon Lee said that those allegations were false and that they had been hacked. Now, if there's one thing we know in crypto is that often when there is smoke, there is fire. We all have PTSD from the past cycles, as I've talked about just before. We've, many of us who are here have suffered losses from these very exact situations. And unfortunately, now, as we're reporting on it, it is probably too late for customers to get their funds off of this exchange. But I would imagine that there is some sort of issue.

Sheldon Lee, the uh founder, I don't want to get in any legal trouble here, but he seems to be deflecting. Seems to be deflecting, not answering questions about why they're not uh doing withdrawals, just making excuses about hacked Twitter accounts. And I would imagine that customers right now are a lot less worried about who hacked Bitmart's Twitter account than who locked their actual accounts. I'm hoping that we will get some clarity on this that uh maybe they're just in slow motion and that users will get their funds back.

But I'm not particularly optimistic. This exchange, by the way, officially will shut down on August 26. Uh these are bear market things in crypto. We've been here before. I hoped we wouldn't be here again, but uh it seems that humans are going to human and repeat the exact same cycles from before. But here's an exchange with amazing purple branding that is doing exceptionally well.

Kraken. Kraken. Announcing US-listed stock trading for EEA customers. Okay, so we've talked about the trend of 24/7 365 access to every asset all over the world. Well, we are getting a lot of exchanges competing to be the everything app at the center of that very trend. So what's happening here?

Kraken launched more than 7,000 US listed stocks for eligible European customers.

Why not Americans? We literally hate fun here. We don't even get any of the good products from our own companies, right? But users here can hold traditional shares alongside 700 plus tokenized stocks and 800 plus crypto assets. Now, interestingly, these tokenized shares are backed one for one. There are a lot of different kinds of tokenized stocks we've talked about. Some you actually get the voting rights and all the value of being a shareholder. Some are just derivatives where you're basically betting on price action.

These are backed one for one. And they're transferable to self custody and tradable beyond normal market hours. We're going to talk about that a little bit more in the future. But interestingly, even if the stock market is closed, you can trade these tokenized stocks on Kraken outside of those hours. So what we're seeing here is that Kraken is no longer really a crypto exchange. They're becoming a global multi-asset brokerage. And that is a trend that we've seen. So we're basically seeing this converge on two sides.

You have the Krakens, the OKX's, the Coinbases, the Binances, the originally crypto-native exchanges that are slowly moving into TradFi. And of course, tokenization is helping them to accelerate that trend. Then you have maybe in the middle, we can say like a Robin Hood, right, who was already offering, uh, traditional stocks. That's how they started. They got into crypto early and they're trying to become an everything app. And then on the other side, you have the Morgan Stanley and the Charles Schwab that we've reported on slowly adding crypto exposure for their customers.

There was a story today, literally we didn't get to, that Citibank is now adding custody for crypto assets. They've they've announced that. But we talked about the fact that you can buy crypto on Schwab. Recently on E-Trade, which is Morgan Stanley, they've added Bitcoin, Ethereum and Solana spot trading, their own ETFs. We see where the puck is moving here. And everybody converging in the middle to blur the lines between what is a crypto exchange, what is a traditional exchange, and what is in the middle. And the fact is,

you will be able to eventually trade everything 24/7 365. We will get into that in a bit. But uh, you know, Kraken's asset allocation strategy apparently now is all of them. Right? Give you access to everything all of the time. And I am abso- absolutely here for it. Now, someone who doesn't want you to have access to everything all the time, just select things, is the United States Treasury. And the US Treasury Department proposes Genius Act stablecoin rule. The Treasury proposal would establish some of the core definitions and jurisdictions in the law Congress completed last year.

So the law is already the law, but we need cops on the beat, as Gary Gensler used to say, to actually make these laws a reality on the ground. So Treasury here is proposing the market access rule for the Genius Act beginning in 2027, companies will generally need federal or approved state authorization to issue stablecoins in America. It's going to be determined on a certain threshold. If you're under a certain amount of billions, it's either 10, 50,

under that threshold, you can be regulated by the state. Above that, you will have to go to the United States government. And by July 2028th, US exchanges generally can offer only stablecoins issued by approved domestic or qualifying foreign

issuers. Right? So we have a long time to see how this plays out, but it's very clear to see how it is playing out as you see who is starting to get conditional approval, approvals for OCC bank charters, which platforms and and stable coins are already being offered to United States customers. And interestingly, the Coinbases and Robin Hoods and OKX's of the world that I talked about before, they're going to actually have to be the ones who enforce this in 2028 by delisting the stable coins that are not deemed compliant.

So listen, stable coins like USDC, the Paxos issued coins, all of these are going to be compliant, no question. I think right in the middle maybe is a USD1, the Trump-backed stable coin from World Liberty Financial. Clearly, they're moving in the right direction.

The elephant in the room is what happens with Tether USDT, by many, many multiples, the largest stable coin in the world, used every day by people all over the globe, already more difficult to use in the United States than other places. Now, they've gotten ahead of this by a partnership with USAT, uh with Anchorage, with Anchorage, excuse me, to launch USAT, which is a United States genius compliant stable coin. They have Beau Hines uh running that, who used to be in the White House, right?

So they have a plan. The question is, will you actually have a uh story of two stable coins from Tether? Or will USDT find a way by that time to become compliant in the United States, which uh there are a number of ways I'm assuming that they're going to try to do that. I'm having a conversation with the CEO of Tether, Paolo Ardoino next week. And I will ask him that very question. But it's good to see some progress in actually establishing these rules from the genius act since we all know the clarity act ain't happening and we got to take what we can get.

Okay, next story. Upbit and Bithumb report 50% declines in H1 revenue reflecting market contraction. So, true story, I thought this Korean exchange was called Bitthumb for years. And then I was on a call with an executive, and I believe I heard him call it Bithumb, like you're humming, not like biting a thumb, but Bithumb, right? And then I started calling him Bythumb just to mess with him. What has two thumbs and calls your exchange the wrong name?

This guy. Bythumb. Bythumb. But either way, we have a massive contraction here. Upbit uh their first half revenue dropped 49.1% versus last year while operating profit fell nearly 80%. Bithumb revenue fell 48.7% and swung to a roughly 77 million loss. If you know anything about South Koreans from watching the show is that they're massive degenerates that gamble on anything, it is a Herculean effort to lose money on crypto trading in South Korea. So why is this happening? I think we have two answers to that question.

Number one, I think very obviously, crypto's down bad. Right? We've seen the same trend with earnings reports from Gemini and Coinbase and Robin Hood and everyone in the United States. Crypto revenues are down at least 50%. There's not that much interest, there's not that much volume, therefore it's hard to make money. But the Koreans never seem to care about that. These guys were, you know, flipping daily volumes of American exchanges very regularly, even at the depths of bear markets in the past.

So, I think the second story which anecdotally we've seen in the United States and everywhere in the world is that the hot ball of money is just not in crypto. You'll remember my amazing segment from how not to invest where I told you about the fact that even Korean retirees were selling their investments and their insurance and their savings to YOLO into SK Hynix and Samsung leverage ETFs at the top of the AI bubble. And what naturally happened after that? They they got liquidated, right?

The KOSPI had a circuit breaker down like seven, eight times, days and days in a row. Well, I think that this money that used to be in crypto in South Korea moved to greener, hotter past pastures like the AI trade with leverage. Not a big surprise that we're seeing this in South Korea, but it does show you just how bad it actually must be if they are also suffering. I mean, like I said, a Korean exchanges are just generally, historically printing money.

Oh well, what are you gonna do? Bear market things. Once again, it will inevitably come back when we see another bull market. Now back to the 24/7 365 story. I should have done these in a different order. Should have put this one up there. Nasdaq confirms 23-hour trading from December with new overnight session. Sucks for you hedge fund losers, doesn't it?

You're going to have to stay up really late at night and try to figure out how to have a job that has more than seven hours a day. Yeah, this is crazy, right? Nasdaq targeting December 6 for 23 hour, five days a week. Partially there, but we will go to 24/7 365 as I told you on all these platforms. You'll be able to trade stocks, crypto, pre-IPO, anthropic, Pokemon cards, your Charizard, your kids lunch money, all of it in one place 24/7 365.

Nasdaq realizes that and this is an innovation that you can thank crypto for. Right? Crypto degens, we're the ones who gave the world 24/7 365 markets. You're welcome by the way. coming to every single market. And when the Nasdaq makes an announcement that they're actually going to do this, you know that the trend is real and eventually you will be able to trade everything on leverage, prediction markets, all of it, all of the time. And now,

for everybody's favorite segment of the show. It's how not to invest. Hit it. How not to invest, how not to invest How not to

So good. Love that. Love that, and I know that you love that. So today's how not to invest is to use an active fund manager. Here you go from Kelsie, just in, nearly 75% of active fund managers failed to beat the S&P 500 over the last 12 months. Now, I actually have a video here of financial advisors putting your money in an index fund for you. Here they are.

He's working hard. He's working hard. You saw how he pushed the train? At the end. Train had no chance. This is, you know, this guy's getting paid a salary just like your financial advisor is getting paid a salary to lose you money. So here's the stat. By the way, I have to give credit. That was from a an account called Documenting Sailor on X that joke. I was just dying and had to share it.

So, only 27% of actively managed US large cap funds beat their passive benchmark over the past 12 months. That means 73% underperformed. Over the past decade, the average success rate was approximately 13 percent. So identifying the rare winning manager beforehand remains the nearly impossible part. 13%.

87% of the time you would have been better off passively buying an index and doing literally nothing than giving somebody a fee to actively manage your portfolio. I think it's the same in crypto. You just buy Bitcoin. That's basically the S&P and you don't try to beat Bitcoin because it is nearly impossible. But this is a cautionary tale for everybody. You don't need to be a genius to invest. You don't need to time the market, you just need time in the market.

You could just buy the S&P, passively invest, you could do it with dollar cost averaging and go about your life without paying a financial advisor. I believe you can effectively do exactly this same thing with the B right here, with the Bitcoin. That's all I've got for you today. How not to invest. We will see you tomorrow. Thanks for tuning in. Peace.