MAJR News 060
Bitcoin Futures ETF is live today, Interactive Brokers rolls out crypto trading platform for RIAs, Polkadot unveils $770M development fund, Galaxy Digital raises another gaming NFT fund - $325M
@codyengland
MAJR NEWS BRIEF
Videos
The Best Business Show with Anthony Pompliano (POMP) talks current market conditions and brings on bitcoin ETF specialist to discuss the first Bitcoin Futures ETF in the US.
Mark Cuban and prominent bitcoiners duke it out on Twitter Spaces after the National Affairs published their article on why the US government should buy bitcoin (article below).
Must Read
Bitcoin and the U.S. Fiscal Reckoning - National Affairs published an extraordinary piece about why the US government should buy bitcoin to back the US dollar and help maintain global economic dominance. It’s a very thoughtful piece that brings everything together - economic history, how we got here, the pandemic’s influence on our economic predicament and why bitcoin may be the only solution.
Top Stories
BITCOIN
ProShares Bitcoin Futures ETF to Start NYSE Trading on Tuesday
The SEC approved the first Bitcoin Futures ETF on Friday for ProShares, the Bitcoin Strategy ETF. It starts trading on the Chicago Mercantile Exchange (CME) today. Investors will be able to buy contracts speculating on bitcoin’s price vs. buying the underlying the digital asset. While this is a step in the right direction, there are many critics of the SEC’s decision to approve a futures product given their rhetoric about protecting investors and solving inequality. Trading futures contracts is more complicated and mainly executed by professional traders vs. your average investor. Contracts are based on paper prices which can get over leveraged and way overvalued, we should expect extreme volatility moving forward.
MAJR Take: Bitcoin is overbought on the daily RSI and approaching overbought on the weekly RSI. Many traders are in profit as BTC is closing in on all-time highs, $62,312. Many think the announcement will be a big pump fake and a “buy the rumor, sell the news” situation.
Bitcoin Equilibrium Price Likely to Top $168,000 Following ETF Approval, FSInsight Says
Head of Research at FSInsight believes the ProShares Bitcoin Strategy ETF will attract close to $50 billion of inflows within the first year, more than QQQ - the most successful ETF with inflows of $36 billion. The equilibrium price is the value at which demand for bitcoin meets supply, and he sees this price reaching $168k.
Interactive Brokers Group Launches Crypto Trading for U.S. Financial Advisors
Registered investment advisors are now able to trade crypto for their clients via Interactive Brokers’ new crypto trading platform built by Paxos, the blockchain infrastructure and custody platform. RIAs in the US can now trade Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Commission fees are between 0.12%-0.18% depending on volume, while Coinbase is normally 2%. It’s estimated that the global total assets under management (AUM) for RIAs is close to $100 trillion.
More on Bitcoin
Australia Has Third Highest Rate of Crypto Adoption in the World
ProShares Bitcoin Futures ETF Trades Tuesday: What You Need to Know
CRYPTO
Polkadot unveils $770M development fund ahead of parachain auctions
Polkadot’s (DOT) founder, Dr. Gavin Wood announced that the Ethereum competitor is preparing to issue $770 million from the community’s treasury to incentivize development in the Polkadot ecosystem. This is by far the largest layer 1 smart contract dev fund and it comes as the company also announced it’s upcoming Parachain launch. Parachains are specialized blockchains to support applications that would share the underlying security of the base chain called the Relay Chain.
Galaxy Digital’s Entertainment Arm Raises $325M Fund for NFT, Gaming Bets
Galaxy Digital raised another big round to invest NFTs and Gaming focused on the metaverse, $325 million. The company already raised $150 million to put to work in digital asset entertainment space.
Andreessen Horowitz Vets Launch $110M Crypto 'Ownership' Fund
Variant, a venture capital firm focused on crypto started by legacy a16z crypto veterans Jesse Walden and Li Jin raised $110 million to invest in the “ownership economy.” This is the firm’s second fund and aims to back teams that use tokens to incentive creative projects from gaming to music and art. They see Web 3 as a way to invest into crypto companies that move the value from the platforms to the individuals and creators that drive the platforms.
More on Crypto
What Is BitColors? - website here (NFT DROP 10/19/21 - this one is interesting)
MACRO
China Begins Dollar Bond Sale Even as Evergrande Woes Fester
China looks to be short on dollars as they roll out a US dollar debt offering in Hong Kong as their credit market has been tarnished amid concerns about their financial health given the most recent Evergrande and energy crisis causing an economic slowdown. Their credit market witnessed serious damage with yields on junk debt spiking to 20%, the highest in decade. This $4 billion debt offering will test the investor’s appetite for Chinese market risk.
Supply-Crunch Inflation Gives Central Banks an Unfixable Problem
The pandemic and easy monetary / fiscal policy has global central banks stuck between a rock and hard place. Global consumer price inflation is at 4% and much higher in certain countries with the US above 5% - largely seen in the food, energy and housing markets. While supply chain disruptions are a main contributor to the price inflation, central banks have their hands tied since they can’t fix supply chain issues with stimulus. Therefore, their only option to combat inflation is to reign in stimulus and raise rates, which could send the recovering economy into a tailspin. The Federal Reserve and the ECB seem committed to the story of transitory inflation in order to maintain a low rate environment, while other central banks may need to raise rates.
Procter & Gamble to Raise Prices on More Staples
P&G, the consumer product giant is raising prices on household goods (diapers, toilet paper, paper towels, etc) due to the rising costs of materials and shipping. While, the company’s net sales have rose 5% to $20.3 billion, which is higher than expected, the company says prices have risen much faster than expected and keep going higher. “We do not anticipate any easing of costs,” P&G Finance Chief Andre Schulten said in an interview. “We continue to see increases week after week, though at a slower pace.”
More on Macro
MEDIA
The Best Business Show with Anthony Pompliano - Episode #69
MARK CUBAN DEBATES BITCOINERS (Preston Pysh, Peter McCormack, Pomp)
Bitcoin and crypto adoption is here to stay. Don’t let your friends and family miss the opportunity of a lifetime.
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