Today’s edition is brought to you by Animus Technologies.

To leverage A.I and start out-returning Bitcoin, book a call with them today!

GM to all 42,744 of you. Crypto Nutshell #224 glidin’ in. 🦢 🥜 

We’re the crypto newsletter that's more empowering than discovering you have superhuman abilities and a responsibility to protect the world... 💪 🌎

What we’ve cooked up for you today…

• 🎉 Bitcoin ETF milestone

• 🔮 Cathie Wood - Bitcoin to $2.3 million

• ⚖️ How much Bitcoin do exchanges have?

• 💰 And more…

MARKET WATCH ⚖️

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

BITCOIN ETF MILESTONE 🎉

BREAKING: BlackRock’s Bitcoin ETF edges GBTC in daily trade volumes for first time

BlackRock’s trading volume has surpassed Grayscale’s at market close on Thursday.

The first time this has happened since the ETFs began trading. 🥳

This means inflows are now outpacing outflows.

Here’s the breakdown of day 14’s trading volume:

• GBTC: $290 million 📉

• IBIT: $302 million 📈

ETF analyst James Seyffart also noted that day 14 was the first day that saw less than $1 billion in trading volume. (initial hype is cooling down)

Despite consistent outflows from Grayscale, net inflows into the Bitcoin ETFs are currently at $1.70 billion.

BUT if you take Grayscale out of the equation, the numbers are insane.

Excluding Grayscale, net inflows into the Bitcoin ETFs are at $7.1 billion.

To put these inflows into context, Matt Hougan, CIO at Bitwise posted an interesting statistic:

It looks like Grayscale’s outflows are coming to end. 🍾 

TOGETHER WITH ANIMUS 👾

Let’s be real.

The best part about crypto? 

The returns.

Bitcoin is the best-performing benchmark of the decade.

But imagine if you could do even better.

With the launch of the Bitcoin ETFs, the crypto market has been even more volatile than usual. 

The need for an intelligent management service has never been higher.

That’s where Animus Technologies comes in.

Animus Technologies is an AI-platform designed to develop data-driven trading strategies for cryptocurrencies.

Their mission: Provide clients with sustainable success in crypto markets through curated investment strategies.

Developed over 6+ years, their results are nuts:

• Spectacular Performance: Launching in 2020, Animus Technologies has returned +345.57% vs Bitcoin +119.05% 📈

• A.I-Powered: Uses cutting-edge artificial intelligence and sentiment analysis to out-return Bitcoin on an outright & risk adjusted basis ✅

• Award-Winning Approach: Won Bitcoin Magazines ‘Bitcoin Alpha Competition’, receiving $1 million in seed capital 🌱

• Additional Opportunities: They also have an ETH Alpha Strategy 👀

Animus Technologies is again looking at taking on a limited number of new clients.

If you are looking to leverage A.I and out-return Bitcoin, you can click here to book a call with their team today to see if they’re right for you.

CATHIE WOOD: BITCOIN TO $2,300,000 🔮

If institutional investors want to maximise returns whilst minimising risk, they should allocate 19.4% of their portfolio to Bitcoin.

Which would send the Bitcoin price to $2.3 million dollars. 🤯

That’s the latest message out from ARK Invest & Cathie Wood.

Each year, ARK Invest releases a ‘Big Ideas’ report at the end of January.

It’s a comprehensive analysis of the biggest innovations and technological breakthroughs currently unfolding.

In Big Ideas 2024, we got a portfolio breakdown of Bitcoin.

But first - a quick Economics 101.

Back in the 1950s, a guy called Harry Markowitz discovered something incredible.

The discovery?

In a portfolio, if you combine volatile assets that are uncorrelated, you maximise your returns whilst DECREASING your risk.

This is essentially what Modern Portfolio Theory is.

How does this all relate to Bitcoin?

Bitcoin is uncorrelated to everything.

Which means, if you add it to any traditional portfolio, it should boost returns, whilst decreasing risk.

Which is what everyone wants.

But this raises a question:

What percentage allocation is optimal?

That’s exactly what ARK Invest worked out.

They came up with 19.4% as the number that maximises risk-adjusted returns.

How would a 19.4% allocation from institutions impact the price of Bitcoin?

ARK estimates that Bitcoin has a $250 trillion global investable asset base.

At just a 1% allocation, that would send Bitcoin to $120,000.

At an optimal 19.4% allocation, that would send Bitcoin to $2.3 million.

Smart money & sophisticated investors are beginning to realise this.

Allocating even a small part of your portfolio to Bitcoin is a win-win.

It boosts returns & decreases risk.

This is why we’re witnessing every major asset manager race to get a slice of the pie. 🥧

Still early.

EXCHANGE BALANCES ⚖️

Today, we’ll be taking a look at the amount of Bitcoin available for sale on exchanges.

A decline in this metric is a bullish indicator as it signifies a shift towards long-term holding. 💪

Whereas an increase in this metric can be seen as a bearish indicator. We can assume that Bitcoin is being transferred to exchanges to be sold.

Currently there is only 2,370,657 Bitcoin available for sale on exchanges.

That’s ~12.09% of the entire circulating supply.

In fact exchange balances have dropped to levels last seen around April 2018.

However taking a look at the chart above, this metric appears to have plateaued for now.

The Sharpest decline in this metric occurred around November 2022, with the collapse of FTX.

This was a HUGE wake up call for every crypto investor. How safe are exchanges really?

As a result of FTX filing for bankruptcy, exchange balances instantly decreased from 2,717,125 BTC down to 2,357,540 BTC (pretty much where we are today).

That’s a decrease of 359,585 Bitcoin…

As the newly launched ETFs continue to purchase Bitcoin, we expect this metric to continue trending lower. 😎

CRACKING CRYPTO 🥜

Google allows spot Bitcoin ETF ads; BlackRock, VanEck among sponsored links. Google has begun to permit advertisements featuring U.S. spot cryptocurrency exchange-traded funds (ETFs) as of Jan. 29.

19.4% Bitcoin portfolio allocation ideal for risk-adjusted returns. A 2023 research report from ARK Invest suggests that institutional investors should allocate 19.4% of their portfolio to BTC to maximize risk-adjusted returns.

US Department of Energy demands consumption stats from bitcoin miners. The Energy Information Administration said the survey will help them understand the “energy implications” of crypto mining.

WHAT WE’RE READING 📚

Want to get even smarter? Check these out.

p.s. all completely FREE

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: B) 2021 🥳

In May 2021, Chinese authorities ordered a crackdown on crypto mining and trading and regulators banned financial institutions from offering services related to cryptocurrencies.

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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