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GM to all you crypto nuts. Crypto Nutshell #461 keein’ it cool…  🥶 🥜

We're the crypto newsletter that's more intense than defending humanity from machines in a post-apocalyptic world... 🤖🔥

What we’ve cooked up for you today…

• 🏦 Investors want crypto

• 🌋 Endgame revealed

• 🤔 What’s going on with the ETFs?

• 💰 And more…

MARKET WATCH ⚖️

Only the top 20 coins measured by market cap feature in this section

INVESTORS WANT CRYPTO 🏦 

BREAKING: Nearly 50% of U.S. Investors Plan to Invest in Crypto ETFs: Charles Schwab Survey

Financial services giant Charles Schwab conducted a survey on 2,200 investors aged between 25 and 75 years old. (annual survey)

And the results are pretty interesting…

Charles Schwab found that 45% of respondents plan to invest in crypto via ETFs over the next year.

That’s up from 38% the year prior, and even surpasses demand for Bonds and real assets. (oil, gold etc.)

That’s pretty crazy to see. (only 10% behind US equities)

But here’s the thing…

Among millennial ETF investors, crypto came out on top with 62% of respondents saying they plan to allocate to the sector.

Comparatively only 48% of millennial respondents opted for US stock ETFs.

That’s crazy to see.

However…

Boomer ETF investors were WAY less keen on crypto, with only 15% of respondents having plans to invest.

Gen X investors were split with 44% opting for crypto and 56% opting for US equities.

But, despite crypto ranking #2 overall and Charles Schwab having access to this data…

It’s a little odd they still haven’t launched their own crypto ETFs…

Maybe that’s coming soon…

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MAX PAIN 🌋

Right now the market is “short the upside”.

Max pain for the market is not down, it’s up.

When the market rips, it’s going to RIP.

That’s the latest out from macroeconomic expert, Raoul Pal.

In investing, there’s a theory called ‘max pain’.

It’s a theory that suggest the market tends to gravitate towards a path that causes 'max pain' for investors, meaning it results in the maximum amount of potential profit being lost.

This week, Raoul was interviewed alongside crypto trader Michaël van de Poppe.

He broke down why he thought ‘max pain’ was next for crypto.

As we’ve been saying for months now, there’s a huge amount of market participants that are waiting on the sidelines.

Institutions, family offices, and other various whales are all waiting for the results of the election before they jump in.

This means ‘max pain’ is not down, it’s up:

Most investors on the sidelines, just waiting for confirmation that crypto is trending:

These are the conditions that allow the ‘banana zone’ to happen:

When Bitcoin & crypto breaks out of this 8-month consolidation, it won’t do it softly.

It will be violent. 😈

WHAT’S GOING ON WITH THE ETFs? 🤔

So the Bitcoin ETFs had an interesting week…

It started out great with $235.2 million in net inflows on Monday.

But then Tuesday, Wednesday and Thursday all saw outflows totalling $140.3 million.

However…

Friday was another BIG day, seeing $253.6 million in inflows.

Bringing the total weekly inflows to $348.8 million. 🥳 

Interestingly Friday saw a completely neutral day from BlackRock. (zero inflows/outflows)

Here’s Friday’s breakdown:

1. Fidelity FBTC: $117.1 million 🥇

2. ARK Invest ARKB: $97.6 million 🥈

3. Bitwise BITB: $38.8 million 🥉

Ethereum also had an interesting week. (If you can call it that)

In total the Ethereum ETFs saw net inflows of $1.9 million for the week…

But, the only inflows for the week came from BlackRock on Thursday ($17.8 million) and Fidelity on Friday ($8.6 million).

It’s worth pointing out that outflows from Grayscale’s ETHE have slowed down considerably.

However, now we’re starting to see outflows from other issuers such as Fidelity and Bitwise.

That raises the question…

Have the Ethereum ETFs been a failure? (In total they’ve seen net outflows of $546.1 million)

ETF analyst James Seyffart recently answered that exact question at Permissionless.

Here’s what he had to say:

James also gave some reasons on why he believes the Ethereum ETFs have underperformed:

1. July launch (6 months after Bitcoin) - Investors were still just getting their heads around Bitcoin. Launching later would have likely resulted in more inflows out the gate

2. Summer doldrums - They also launched during the “boring” summer period of the markets which goes hand-in-hand with the next point

3. Ethereum downtrend - Price performance has not been great since the ETFs launched (Bitcoin had a huge upswing when the Bitcoin ETFs launched)

4. No staking - These ETFs don’t offer staking, making them less attractive to ETH holders (you’d rather have the option to stake than not)

James also believes that the Ethereum ETFs are more of a slow burn.

ETH is a more complex sell compared to Bitcoin. (Digital gold vs programmable blockchain)

It’ll take more time for investors to really understand the differences between Bitcoin and Ethereum.

Anyway, the ETH ETFs have only been live for ~2 months.

So there’s still time for James’ original inflow prediction to come true…

But we’d have to see some absolutely MASSIVE inflows for that to realistically happen.

CRACKING CRYPTO 🥜

Arkham Intelligence to launch its own derivatives exchange. The on-chain data platform is reportedly set to relocate to the Dominican Republic and its exchange will not be available to US users.

Bitcoin Takes Another Shot at $63.5K as China's Vague Fiscal Stimulus Deters Capital Shift. China's highly-anticipated fiscal stimulus announcement fell short of expectations, reducing the likelihood of capital flows into Chinese equities.

British man sues council for $647M over lost Bitcoin in landfill. James Howells continues his legal battle for 495 million British pounds ($647 million) in damages after Newport City Council blocked his landfill excavation request.

Former FTX executive Ryan Salame begins his seven and a half year prison sentence. Salame, previously the co-CEO of FTX Digital Markets, is in custody at FCI Cumberland in Maryland as of Saturday morning.

WHAT WE’RE READING 📚

Want to get even smarter? Check these out.

p.s. all completely FREE (one click subscribe link)

• Raremints (link) - Daily crypto news

• Bitcoin Breakdown (link) - Twice weekly Bitcoin news

• Crypto Pragmatist (link) - Actionable alpha 3x a week

• The Hustle (link) - Get Smarter on Business and Tech

• Your Next Breakthrough (link) - Personal growth with Mark Manson

• The Neuron (link) - AI trends and tools to keep you ahead

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”)

MEME CORNER 😂

Because what would the crypto world be without its share of memes?

Trivia Answer: D) March 2020 🥳

Solana launched on Mainnet Beta in March 2020

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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.