🎉 Ethereum ETF approved

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May 24, 2024

Good morning investors!

If you missed the “Investing in Crypto” webinar last night, you can watch it until Sunday night. We covered the best way to invest in crypto and what drives crypto prices.

Fun fact: The U.S. Dollar has lost 96.3% of its purchasing power since the creation of the Federal Reserve. Debasement is online. Watch the Crypto webinar to learn how to profit from the debasement.

Today we cover:

  • Ethereum spot ETF is finally approved. What does it mean?

  • What happened to Bitcoin when the BTC ETF was approved?

  • Rents get expensive(er)

📊 Economy and News 

Spot Ether ETF is approved

The SEC has officially approved several spot Ether (ETH) exchange-traded funds (ETFs) in the United States, marking a significant milestone for the crypto industry.

This approval comes after the regulator previously greenlit spot Bitcoin ETFs in January 2024, allowing mainstream investors to gain exposure to the two largest cryptocurrencies through traditional investment vehicles.

The approved Ether ETF issuers include VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.

Note: While the 19b-4 filings have been approved, the ETF providers still need the SEC's approval on their S-1 registration statements before the funds can begin trading.

Flashback

When the first spot Bitcoin ETFs were approved on January 10, 2024, it had a positive impact on the price of Bitcoin.

  • Bitcoin price on that day was about $46,600.

  • Bitcoin hit a new all-time high near $74,000 in mid-March 2024, after the ETF approvals. This represented a significant rally from around $16,800 in early January before the ETF news.

  • The approval and launch of spot Bitcoin ETFs attracted significant investment inflows from mainstream investors who could now gain exposure to Bitcoin through traditional investment vehicles like their brokerage accounts. This increased demand helped drive up Bitcoin's price.

  • The SEC's approval of Bitcoin ETFs was seen as lending greater legitimacy and validation to Bitcoin in the mainstream financial system. This boosted confidence in Bitcoin as an asset class among investors, contributing to price appreciation.

ETH price barely moved today tho?

The price of ETH was flat today for 2 reasons:

  • All the action happened on Monday when word of the pending approval leaked.

  • As you read above, it took Bitcoin over 2 months to hit an all-time high after the approval. Investors wanted to see how many people would actually buy it.

Will the same thing happen with ETH? Probably not as much since it’s less popular and the ETF doesn’t include staking, but we'll see.

What do you think will happen to the price? Respond to this email with your thoughts.

Global hits:

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🔐 Crypto

Bitcoin $67,645 (-2.7%)
Ethereum $3,798 (+0.4%)
Total market cap $2.68 (-1.6%)
* Prices as of May 24th, 4:40 AM UTC

Ethereum ETF Approval implications

For over a year SEC Chairman Gensler has been arguing that Ethereum is a security and should be regulated by the SEC. Today’s news took some wind out of his sails.

  • The SEC's approval of spot Ether (ETH) exchange-traded funds (ETFs) is seen as implicit recognition that Ether is not a security.

  • Some experts believe this could extend to other tokens as well, suggesting they may also be considered commodities rather than securities.

  • However, the SEC could still potentially pursue action against individual actors and staking services, even with the ETF launch.

U.S. Passes CDBC Bill

The bill prevents the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) without Congressional approval.

🏛️ U.S. Congressman Emmer outlined his support saying:

"It is government controlled, programmable money, that could give the federal government the ability to restrict Americans transactions." (watch this speech)

💵 Personal Finance

Rents are changing – how much and where

According to Apartment List, multifamily rents in April were 0.8% lower than in the same month last year.

In contrast, single-family rents showed much stronger growth, increasing by 3.4% year over year in March, as reported by CoreLogic.

Among the nation’s 20 largest U.S. cities, Seattle experienced the highest year-over-year increase in single-family rents at 6.3%, followed by New York at 5.3% and Boston at 5.2%.

Conversely, Austin, Texas, saw the largest decline at 3.5%, followed by Miami at 3.2% and New Orleans at 1.4%.

For the first time in 14 years, single-family attached properties, such as townhomes, posted a year-over-year rent decline.

Typically, rents start to rise in the spring, but this year’s increase is not only smaller than usual but also smaller than the previous month’s gain. In April, the national median rent was $1,396.

If you find your rental too expensive then check this video for some great tips on how much to spend on rent:

💰 Be a Better Investor

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments.”

Charlie Munger

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.