Large Bitcoin holders are increasingly moving their holdings from private wallets to Wall Street through a new wave of exchange-traded funds, Bloomberg’s Emily Graffeo reports. A recent U.S. regulatory change now allows “in-kind” transactions, enabling investors to exchange Bitcoin directly for ETF shares without triggering taxes or selling the asset. BlackRock, which has already processed over $3 billion in such conversions, is leading the trend. “Life is just easier in TradFi land,” said Wes Gray, CEO of Alpha Architect. The shift gives Bitcoin holders the ability to borrow against, collateralize, or include their digital assets in estate plans, functions that were cumbersome in self-custody. Bitwise’s Teddy Fusaro said it’s about “the convenience of holding exposure within existing financial adviser relationships.” The move signals Bitcoin’s continued absorption into regulated finance, strengthening institutional legitimacy for the digital asset industry.
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Nick Giambruno argues in International Man that the U.S. faces an inevitable “sixth default,” one driven not by missed payments but by gradual currency debasement and the collapse of Federal Reserve independence. Drawing on historical precedents, from 1812 to Nixon’s 1971 gold window closure, he contends that Washington’s recurring response to insolvency has been “to change the rules rather than honor its promises.” With Federal interest payments surpassing $1 trillion and entitlements politically untouchable, Giambruno says monetary easing will become the only viable path. He predicts Donald Trump will pressure or replace Fed Chair Jerome Powell to secure looser policy, echoing proposals like a “third mandate” to suppress long-term rates. As investors and central banks anticipate this shift, Giambruno suggests a return to gold (or bitcoin?) as protection against a weakening dollar and the erosion of faith in U.S. fiscal stability.
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In Porter’s Journal Issue #122, Erez Kalir of Porter & Co.’s Tech Frontiers distills the philosophy behind Jim Simons’ legendary success at Renaissance Technologies: “find a different game.” Simons’ firm, which compounded returns at 66% annually before fees, did so by hiring scientists, not financiers, and treating markets as solvable mathematical systems rather than behavioral puzzles. Kalir extends this principle to modern sectors like AI and biotech, warning that investors chasing obvious opportunities, such as OpenAI or Nvidia, are entering overcrowded trades. Instead, he highlights “AI appliers” like Vinted, which uses AI to translate listings and optimize pricing, as examples of companies building invisible moats. Likewise, select biotech firms are using AI to mine Big Pharma’s discarded compounds for breakthroughs, sometimes earning 100x returns. Kalir’s message: enduring edge lies in discipline, creativity, and playing a game others overlook.
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Coinbase has unveiled Payments MCP, a protocol linking artificial intelligence directly to digital asset transactions, Decrypt reports. Built on the firm’s x402 standard, which revives the long-unused “HTTP 402: Payment Required” code, the tool allows AI agents to hold wallets, fund accounts, and send stablecoin payments autonomously. “Crypto is uniquely suited to machines,” said Erik Reppel, Coinbase’s head of engineering, adding that programmable money enables secure, traceable spending limits and compliance at every layer. The system integrates with Anthropic’s Claude, Google’s Gemini, OpenAI’s Codex, and Cherry Studio, with ChatGPT support expected later. Coinbase and Cloudflare are co-founding the x402 Foundation to keep the protocol open-source and company-neutral. Reppel predicted that 2026 will mark “the year of agentic payments,” when AI systems routinely purchase compute and data services on-chain, quietly merging digital asset infrastructure with mainstream automation.
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Couldn't agree more. Your perspecive on the US default is so clear, how do you think this influences European stability?