16th May 2024 > > 13F forms & Coinbase.

tl;dr

13F forms are painting an intriguing picture of the depth and range of those investing in spot BTC ETFs. Technical problems at Coinbase are a reminder of the need for self-storage for those of us who are prevented by the UK regulator from buying spot BTC ETFs.

Market Snap

Market Wrap

The relatively benign inflation figures yesterday gave a boost to all risk assets, with the S&P 500 posting new all-time highs. The reasons for this exuberance are two-fold. Certainly, the date for an expected rate-cut (aka market manipulation by the Fed) has been brought forward. More importantly, it looks ever more likely that the Fed has got it wrong again, and interest rate cuts will be deeper and faster to make up for its incompetence.

Following this news, spot BTC ETFs saw a net inflow of $300mm, the largest since May 3rd.

Curious Cryptos’ Commentary – 13F forms

Millennium Management has declared a $2bn spot BTC ETF portfolio. With AUM of $64bn that’s over 3% invested in BTC.

Oh, how everyone laughed at me when I said that the investment world will (eventually) put 3% - 5% of assets into BTC.

The laggards who are reluctant to get involved will be forced to respond when they realise that the trailblazers are providing superior returns for lower risk (higher Sharpe Ratio – much higher), and that investors are making the rational decision to jump ship. We saw the first signs of that yesterday with the appointment of a new crypto-friendly CEO to the most extreme of the laggards, Vanguard, whose official company policy is to avoid cryptos at all costs.

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The State of Wisconsin is also getting involved. Its investment board has close to $200m invested in BTC. More States will follow.

The diversity of investment funds is as broad as one can wish for.

Curious Cryptos’ Commentary – Coinbase

You might have noticed that withdrawals from Coinbase have had some technical issues for a few days.

This is not a precursor to a potential bankruptcy, and your funds are safe. Probably.

But again, this is a timely reminder – please only keep around 5% of your total crypto assets across all centralised exchanges. The best storage option, in my opinion, is a Ledger Nano X, though some do not like the Bluetooth functionality.

If you need help, just ask.