After months of discussions and dozens of petitions, the first Bitcoin ETF has been approved.
It’s the beginning of a new era. Cryptocurrency investors can now use ETFs to get exposure to Bitcoin. And that ETF structure helps to add a level of safety and confidence.
This doesn’t mean that cryptocurrency investments are “safe.” Prices for these coins will probably still be quite volatile.
But a Bitcoin ETF will allow investors to buy and sell within retirement accounts. It will protect against the risk of losing digital wallets or passwords. And a Bitcoin ETF will make it just plain easier to buy and sell using a traditional brokerage account.
ProShares is expected to launch the first Bitcoin ETF this week. It’s backed by Bitcoin futures contracts (instead of actual bitcoin tokens).
There are more applications on file with the SEC. So expect to see more funds become available soon!
Today’s links include the new Bitcoin ETF, a weak Chinese economy, a crazy bet on oil, and one insane structure for a running race.
Bitcoin ETF Kicks off a New Crypto Era
- CoinDesk: SEC approves Bitcoin futures ETF.
- ProShares may be the first to launch (possibly this morning).
- SEC still has 30 additional applications to respond to.
- CNBC: Grayscale to file for spot Bitcoin ETF.
- Company expects a 75-day review period.
- A spot Bitcoin ETF would be a more direct investment than a futures-based ETF.
An Evolving Global Energy Crisis
- WSJ: Crazy bets on $200 Oil.
- West Texas Intermediate (WTI) crude up 70% this year.
- Option traders are getting more aggressive – some betting on $200 oil.
- Expected volatility has risen alongside the price of oil.
- Reuters: China looks to lock in U.S. LNG.
- At least five Chinese firms are in discussions with U.S. nat gas exporters.
- Natural gas prices in Asia have jumped more than 5X this year.
- Chinese looking for short-term contracts for this winter and long-term agreements.
- Reuters: China’s economy stumbles.
- China’s GDP hit by power shortages and property sector.
- GDP up 4.9% from last year, below forecast.
- Crackdowns on property sector, technology and carbon have hurt.
- WSJ: Crazy bets on $200 Oil.
- West Texas Intermediate (WTI) crude up 70% this year.
- Option traders are getting more aggressive – some betting on $200 oil.
- Expected volatility has risen alongside the price of oil.
The Economy Is Recovering (ish)
- ING: US retail sales confirms soft patch is over.
- Economy is re-accelerating after recent slowdown.
- Consumer finances in good shape, incomes picking up.
- Expect to see higher spending on services in the months ahead.
- This cements expectations for Nov 3rd Fed taper announcement.
- ING: US confidence softens, energy costs bite.
- Gasoline increased from $2.20 a year ago to $3.31 today.
- Nat gas surge has people worried about winter.
- 1-year inflation expectations at a 13-year high of 4.8%.
- CNBC: Homebuilder confidence is recovering
- Supply chain issues and labor shortages are still major challenges.
- The median price for a home in August was 20% above last year.
- Mortgage rates are rising, expected to hit 4% by the end of 2022.
Tech, Personality and Suffering
- Bloomberg: Automakers ditching silicon computer chips.
- New materials such as silicon carbide could make EVs more efficient.
- “A good batter, a good inverter and a good electric motor doesn’t give you a good car.”
- Elon Musk has touted silicon carbide as key advantage for Tesla cars.
- VisCap: How your personality affects your income.
- ENTJ profile receives highest income, INFP makes the least.
- Extraverts and thinkers out-earn introverts and feelers.
- WSJ – Why We Choose to Suffer.
- Under the right circumstances, pain, difficulty and failure are what we’re looking for.
- The most meaningful events tend to include painful and difficult experiences.
- BBC: Big Dog’s Backyard Ultra
- Run 4.16 miles in an hour — every hour — for as long as you can.
- The last man standing wins.
- Some runners have continued the challenge for more than three days!
