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- 🥜 Crypto Expert: Get ready
🥜 Crypto Expert: Get ready
PLUS: Everyone Needs Bitcoin
GM to all 38,550 of you. Crypto Nutshell #212 vibin’ out. 🐢 🥜
The crypto newsletter that's less tumultuous than surviving a stranded shuttle mission in the vastness of space... 🚀🌌
What we’ve cooked up for you today…
🤑 Everyone needs Bitcoin
🔜 Get ready for what’s coming…
😍 Ethereum’s looking good
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:25am ET
Only the top 20 coins measured by market cap feature in this section
EVERYONE NEEDS BITCOIN 🤑
BREAKING: Franklin Templeton CEO says ETF has shown ‘demand’ for Bitcoin is ‘everywhere’
Franklin Templeton CEO Jenny Johnson recently appeared on CNBC for an interview.
For those who don’t know, Franklin Templeton is the 20th largest asset manager in the world with $1.42 trillion AUM.
Johnson explained that Franklin Templeton decided to launch a Bitcoin ETF as there was clearly “escalating demand” for the asset.
Johnson also notes the following reason for why she became a “believer” in Bitcoin:
“One of the things that made me a believer is I went around the world talking to people…. I had somebody who said ‘I keep 50% of my savings in Bitcoin because if I say the wrong thing in my country, I could have my assets confiscated.’
Similar to BlackRock CEO Larry Fink’s recent comments, Johnson pointed out how Bitcoin serves as a hedge against oppressive governments and inflation.
“There is a fear component to it that is considered almost an insurance or a safety component.”
On why the ETFs are seeing such high demand, Johnson pointed out that self-custody is very complicated for the average person.
The ETFs allow anyone to gain exposure to Bitcoin. They can use their brokerage accounts which they are familiar with. No need to worry about storing your private keys or getting hacked.
Isn’t is strange seeing TradFi bullish on Bitcoin now?
As an added bonus, Franklin Templeton updated their Twitter profile picture to include the popular Bitcoin meme “laser eyes”.
Truly embracing the Bitcoin culture. 😂
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GET READY FOR WHAT’S COMING 🔜
Bitcoin reached its yearly high of over $47,000 on the day the Bitcoin ETFs were approved.
However, with Bitcoin currently at ~$41,000, did it turn out to be a 'sell the news' event?
Absolutely not. And investors need to prepare for what’s about to come.
That’s the message from hedge-fund founder Mark Yusko.
In an interview today, Mark Yusko pointed out that the ETFs are already a massive success.
"Everybody is like: 'Oh, the ETFs were such a failure!' What are you talking about? On every measure, it was a wild success. On every measure. On trading volume, on inflows."
This is backed up by ETF analyst Eric Balchunas. As we pointed out earlier in the week, the volume of the Bitcoin ETFs is already insane:
Why haven't prices mooned? 🌙
The main reason is that even though we are seeing big inflows, we are also seeing big outflows.
The outflows are coming from Grayscale's Bitcoin Trust.
We are seeing billions of dollars of capital flow out of Grayscale's Bitcoin Trust, which is then slowly being put into the new Bitcoin ETFs.
The Grayscale Bitcoin Trust charges a 1.5% management fee, whereas the new Bitcoin ETFs have fees between 0.2% and 0.4%.
Eventually, these outflows will finish.
The second reason is that ETFs take time to ramp up.
Institutional money doesn't immediately pile into an ETF once it's approved.
James Seyffart illustrated this by showing how healthy ETFs grow over time:
Healthy ETF growth
Mark Yusko gave the main takeaway of what is unfolding with the Bitcoin ETFs.
Every single day from now on, hundreds of millions of dollars of Bitcoin will be bought and put into cold storage.
"More importantly, every single day for the foreseeable future, a couple of hundred million, $200, $300, $400 million in Bitcoin is going into cold storage. And they're not coming out. That supply dynamic is just not understood right now."
The Bitcoin ETFs have unlocked passive flows of capital every single day into the future.
It’s only going to continue to ramp up over time.
With the Bitcoin supply being cut in half in just 3 months from now...
We all need to prepare for what’s coming. 🔜
ETHEREUM IS LOOKIN’ GOOD 😍
Today we’ll be checking in on Ethereum.
And spoiler alert: Ethereum’s supply dynamics are looking real good.
To kick things off we’ll be looking at the amount of ETH available for sale on exchanges.
And guess what? 🤷♀️
Exchange balances are effectively at all-time lows…
Only 13,889,312 ETH is currently available for sale. This is a drastic drop from the all-time high of 33,569,011 ETH set in late 2020.
But it gets even better…
The amount of Ethereum locked for staking continues to break past all-time highs. 📈
As of today, there is 36,555,168 Ethereum locked for staking.
That’s ~2.6x the amount available on exchanges and ~30.5% of the circulating supply.
Absolutely crazy numbers.
For those new to crypto, staking allows you to earn rewards for “locking up” your Ethereum. Checkout this short article for a deeper dive into staking.
Basically, compared to Bitcoin, there are more incentives to hold your Ethereum long-term.
Exchange balances continue to drop whilst staked ETH continues to rise.
The perfect storm is brewing. 🌩️
Combine these two metrics with the Ethereum ETFs and things could get real crazy.
(Checkout yesterdays newsletter where we broke down the approval odds of the Ethereum ETFs)
Are you ready for the Ethereum supply shock? ⚡️
CRACKING CRYPTO 🥜
Bitcoin’s spot ETFs make a splash, but can their AUM surpass gold ETFs? Crypto advocates rejoiced as the spot Bitcoin ETFs’ AUM surpassed silver to become the second-largest commodities ETF in the U.S. Is gold next?
As bitcoin ETFs continue fight for assets, here’s where they all stand. Spot bitcoin ETFs by BlackRock and Fidelity each passed $1 billion in assets after five days of trading while others weren't as lucky.
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Which country was first to accept bitcoin as legal tender? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) El Savador 🥳
In September 2021, El Salvador became the first country to make bitcoin legal tender, requiring all businesses to accept the cryptocurrency.
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NUTCASE REVIEW OF THE DAY 🔍
DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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