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Crypto Bros 0, Boomers 1
More forced selling in crypto yesterday as the next domino topples in the sorry FTX charade. A head of steam is building in the legitimization of crypto, as we speculated last year might be the case. A great many of the Great And The Good Of Investment Management have now decided that in fact crypto isn't a threat to all that they hold holy, but rather, cool! - a way to get more fees from the kids. (Who are in their 30s and 40s, but which Master of the Universe doesn't yearn for the time when they could pull three all-nighters in a row. Not even the third yacht can make up for that).
Bitcoin and Ether prices - and the stock prices of $COIN, $MARA, $RIOT and all the rest - may yo-yo for a while yet. Up bigly early today, who knows where tomorrow. But we are cautiously, increasingly, bullish on the two principal coins, Bitcoin and Ether themselves, particularly if invested in via CME futures contracts or the ETFs that track them. In staff personal accounts we are long $BITO for this reason and we have legacy positions in $ETHE (a Grayscale-managed investment trust). We will likely sell that ETHE position if and when it gets back to cost and then find an alternative method to gain Ether exposure.
We think it will be a rock-strewn route to the summit and there are many boulders still to be dodged - at some point we expect Binance to blow, and that will cause much reverberation, more maybe than FTX. Then you have Tether. And all the rest of the v1.0 plumbing. We're keeping our eyes on the prize, which is, what Larry Fink wants, Larry Fink means to get. The spot ETFs are on the way in our view, Gensler notwithstanding, and once they are trading and getting liquid, and the Kings Of The Wild Frontier - your Saylors and so forth - are vanquished? Then we think crypto can moon. Not as a token of financial freedom, quite the opposite, as a vehicle with which Boomersville can get even richer. And that ladies and gentlemen is how securities markets work!