I want to start by touching on the recent pullback in Bitcoin and Ether prices, as well as crypto miner stocks, since Bitcoin hit a new high last week. It is important for investors to remember that the crypto ecosystem remains, and should remain, highly volatile.
While gold bullion and the S&P 500 have a standard deviation of ± 1% on a single trading day, Bitcoin has one closer to ± 4%. Ether is even higher at ± 6%, and HIVE Blockchain Technologies can easily increase or decrease by 8% during any given trading session.
Needless to say, the crypto ecosystem is high risk and potentially very profitable, and it is essential that investors considering participating manage their expectations.
There is a lot more to cover since last week! Below are five Bitcoin developments you should know about.
1. The first Bitcoin ETF was also the fastest at $ 1 billion in assets
Many of you reading this may be aware that Wall Street has finally secured an ETF linked to Bitcoin. The ProShares Bitcoin Strategy (BITO) ETF, which tracks the performance of Bitcoin futures contracts, was first launched last Monday, just days after the Securities and Exchange Commission (SEC) said it would block plus the issuance of investment products linked to digital assets.
But that’s not the only record BITO currently holds. The ETF has attracted over $ 1 billion in as little as two days after its debut, making it the fastest to reach this milestone. The previous record holder, and rightly so, was State Street’s SPDR Gold Shares ETF (GLD), launched in 2004. It took three days for the popular gold-backed ETF to reach $ 1 billion in assets.
BITO may be the first, but it sure won’t be the last. A second Bitcoin futures fund, the actively managed Valkyrie Bitcoin Strategy ETF (BTF), became available for trading on Friday.
That said, not everyone is rushing to buy a Bitcoin futures contract. Of the nearly 700 people who took part in a recent HIVE survey, more than three-quarters said they were “probably” or “absolutely” not interested in an ETF that tracks the futures market. Presumably, they are waiting for a Bitcoin spot ETF, or they would rather own the crypto.
2. Bitcoin’s record price reignited speculation of $ 100,000
The price of Bitcoin topped $ 66,000 for the first time last Wednesday, pushing its market cap above the staggering $ 1.3 trillion. The push was largely due to the early days of BITO as well as the undeniable power of FOMO, or the fear of missing out.
This has rekindled speculation that the crypto is heading for $ 100,000, possibly by the end of the year. Take a look at the logarithmic graph below. Each horizontal line represents a growth factor of 10.
Arithmetically there are a lot of numbers between $ 66,000 and $ 100,000, but geometrically it’s a jump and a jump.
3. A US public pension fund bought Bitcoin and Ether
BITO wasn’t the only love Bitcoin received from institutional investors last week. For the first time, an American pension fund has invested in space. On Thursday, the $ 5.5 billion Houston Firefighters’ Relief and Retirement Fund (HFRRF) announced that it had purchased $ 25 million in Bitcoin and Ether, which marks a “watershed moment for Bitcoin and its place in the market. public pensions, ”according to Nate Conrad, Global Head of Asset Management at New York Digital Investment Group (NYDIG), which made the purchase easier. “Trustees are increasingly aware of how even a small allocation to digital assets can have a big impact over time,” Conrad continued.
Like BITO, this allocation may be the first of its kind, but I don’t think it will be the last. Imagine what would happen to the price of Bitcoin and Ether if the California Public Employees Retirement System (CalPERS), the largest such fund in the United States, were involved.
4.Walmart now has Bitcoin ATMs, with plans for thousands more
Bitcoin has been called a lot of things over the years. It’s “worse than tulips”. It’s a bubble. Warren Buffett described it as “squared rat poison”. More recently, JPMorgan CEO Jamie Dimon said it was “worthless”.
Well, now almost anyone will be able to convert their loose change into ‘worthless’ Bitcoin in their Walmart neighborhood. Last week, it was reported that Walmart had quietly started installing special Coinstar machines in some locations, offering customers the option of buying Bitcoin.
Some 200 kiosks are currently available at the giant retailer, but according to Bloomberg, there are plans to install up to 8,000 over time.
5. The global bitcoin network uses less energy than Christmas lights
On a final note, the Bitcoin Mining Council (BMC) released its quarterly report last week, and it had a lot to celebrate about Bitcoin. If you remember, this group got together over the summer in response to Elon Musk’s claims that Bitcoin mining was consuming too much energy and too much. dirty energy. The Council conclusions, on the other hand, tell a very different story.
According to the group, led by Michael Saylor, CEO of MicroStrategy, and of which HIVE is a member, Bitcoin mining uses a negligible amount of energy in the world when compared to any major country and even to any major industry, including gold mining.
In fact, you might be surprised to learn that Bitcoin mining uses even less energy than Christmas lights every year.
And contrary to Elon Musk’s claims, the grid uses a more sustainable energy mix than any major country on the planet. Germany tops this list with almost half of renewables, while Bitcoin’s global mining network is estimated at 57.7%. The figure rises to almost 66% for BMC members. And then there’s HIVE, which uses 100% green renewable energy to mine Bitcoin and Ether.
To find out what might be driving Bitcoin prices right now, be sure to watch my video on Metcalfe’s Law by by clicking here!
US Global honors health heroes
US Global Investors is very proud to have sponsored the 2021 edition of Health Care Heroes, the annual event that celebrates the doctors, nurses, researchers and other healthcare professionals who serve our hometown of San Antonio. On behalf of the entire company, I take my hat off to you! Thank you for keeping our community safe and healthy, especially over the past year.
Disclosure: The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices of US companies. Standard deviation is a measure of how dispersed a data set is from its mean. The more dispersed the data, the greater the gap. Standard deviation is also known as historical volatility. Frank Holmes has been appointed non-executive chairman of the board of directors of HIVE Blockchain Technologies. Mr. Holmes and US Global Investors both own shares in HIVE. As of August 31, 2018, Frank Holmes is the Interim Executive Chairman of HIVE.
Holdings may change daily. Holdings are reported at the end of the most recent quarter. The following securities mentioned in the article were held by one or more accounts managed by US Global Investors as of 09/30/2021: Tesla Inc.
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