April 14, 2021 | Issue #164

MUST READS

Coinbase Lists on Nasdaq as $COIN

Coinbase (COIN) listed directly on the NASDAQ today at about 1:30 PM EDT. The stock immediately shot up to $424 before tumbling to $310 and ended the day at $328.

All in all, Coinbase closed its first day of trading down 14% from its debut at $381, but still up 31% above its $250 reference price set on Tuesday.

Further Reading:

Coinbase awards all employees 100 shares in surprise giveaway
Coinbase CEO, Brian Armstrong, expects 50% of company's future revenues to come from non-trading businesses
Previous co-founder, Fred Ehrsam, takes some time to reflect

VanEck Launches New ETF on Nasdaq

As if Coinbase wasn't enough, asset manager VanEck today launched a new exchange-traded fund (ETF) on the Nasdaq that gives investors yet another way to gain exposure to the nascent asset class.

The ETF, dubbed Digital Transformation ETF (DAPP), will provide exposure to crypto exchanges, miners, payment gateways, hardware, technology providers, and banking. But to be eligible for inclusion, a company must:

"(i) generate at least 50% of its revenues from digital assets projects; (ii) generate at least 50% of its revenues from projects that, when developed, have the potential to generate at least 50% of their revenues from digital assets or digital asset projects; and/or (iii) have at least 50% of its assets invested in direct digital asset holdings or digital asset projects."

The race to onboard the herd of retail investors just got a whole lot more competitive. For what it's worth, trendy backdoor-BTC stocks such as MSTR, RIOT, MARA, HIVE, GLXY, etc. are all down double-digits today.

NYSE Is Doing NFTs and No One Knows What to Make of It

On Monday, the New York Stock Exchange (NYSE) announced it is issuing NFTs commemorating the “first trades” of important stocks. And many crypto advocates are perplexed.

"Every cycle, legacy players feel the fomo and somehow manage to find the least-meaningful way to participate; from celebs launching their own coins, to companies adding 'blockchain' to their names, to issuing souvenir nfts apparently..." h/t @robustus

These Companies Are On Death Watch [Free Report]

If the fact that we’re in one of the most inflated bull markets in all of history scares you… there’s a huge problem with your portfolio. It means you’re not prepared to weather the looming market storm.

But at least someone has a plan of action. It starts with unloading some of today’s most dangerous stocks. And it ends with the perfect hedge for today’s speculative frenzy.

Click here to access our hedging strategy and the ticker symbols of these “landmine stocks” immediately – it’s free.

DEEP DIVE

⛏️ The Fundamentals of Bitcoin Mining Economics

Enough of the investing news. Now, let's get back to the fundamentals.

AJ Scalia, a Bitcoin mining analyst at Galaxy Digital, wrote an incredible piece on Bitcoin mining over the weekend that we highly recommend if you're interested in learning more about:

The mining landscape
The different variables that come into play within the mining industry
How to compare Bitcoin to traditional commodities markets

On Life, Liberty, and Stock Markets

We, the retail investors, are at a disadvantage compared to Wall St, the suits, and also the individuals we elect to represent us.

Nay, not a disadvantage, we are the fodder...

Just take a look at this data exploring the different trades Members of Congress have made.

As Charlie Munger once said: "Show me the incentive and I'll show you the outcome"

REGULATORY FRONT

Former CIA Director Pushes Back Against Yellen, Bitcoin And Crypto Fearmongers

The Crypto Council for Innovation (remember them? We covered them last week) is coming out swinging...

Through a commissioned report with 33 year veteran and former acting director of the CIA, Michael Morell, they have put senior government officials who issue public warnings about bitcoin’s alleged use by criminals, such as Treasury Secretary Janet Yellen, on notice.

In an expansive study, Morell came to two key conclusions:

Less than 1% of illicit activity uses Bitcoin today (For context, he notes that estimates of illicit activity conducted through traditional intermediaries range between 2-4 percent of global GDP)
Blockchain analysis is a highly effective crime-fighting and intelligence gathering tool

But that's not all. In speaking with Forbes before the paper’s release, Morell also focused on the need for the US to get more involved.

“We need to make sure that the conventional wisdom that is wrong about the illicit use of Bitcoin doesn't hold us back from pushing forward the technological changes that are going to allow us to keep pace with China.”

Remember, this is what Peter Thiel was pushing for last week as well...

U.S. Senate Confirms Gary Gensler as Joe Biden's SEC chairman

Gensler served as the chairman of the Commodity Futures Trading Commission during the Obama years where he spearheaded the implementation of the Dodd-Frank Act. Afterwards, he taught classes at MIT on subjects that included digital assets and blockchain technology.

With Gensler at the helm, investors will be watching a few topics closely:

Which cryptocurrencies qualify as securities
The gamification of trading (ahem GameStop)
Bitcoin ETF approval

Q1 2021 in Review

Crypto law and policy expert, Jake Chervinsky, prepared a review of the entire first quarter of 2021.

With FinCEN and FATF pushing AML regulations... the Biden administration staffing up... rising Bitcoin ETF hopes... Robinhood approaching DeFi... there's certainly a lot of catching up to do in the watchdog world of crypto.