₿ Bitcoin ETFs Amass Over 1 Million BTC

What’s on the Menu 🍴

Last week was a wild time in the markets…

And it looks like this week will also not disappoint!

Here’s what we’ve got for you today:

• What To Watch This Week 👀

• Bitcoin ETFs Amass Over 1 Million BTC ₿

• GME: Trading Momentum Vs. Investing On Hope 📈

Today’s newsletter is a 5 minute read.

What To Watch This Week 👀

The action was frenzied last week as memestocks whipped around, big tech led the Nasdaq to new highs, two central banks cut rates, and crypto attempted a breakout…

Meanwhile crude oil and metals prices dipped, putting pressure on the energy and mining sectors.

The economy is giving mixed signals, with the US jobs market showing some deterioration yet services spending remains robust.

This week investors will focus heavily on the US CPI and PPI inflation reports, as well as projections from the Federal Reserve when it meets on Wednesday.

The market expects no change in US interest rates, but Fed comments will be closely scrutinized.

The Bank of Japan also meets this week, which could have implications for the currency and bond markets.

Here are the major macroeconomic events this week:

• Australia business confidence (Mon)

• UK unemployment (Tues)

• China inflation (Tues)

• UK GDP (Wed)

• US CPI (Wed)

• Federal Reserve meeting (Wed)

• US PPI (Thurs)

• Bank of Japan meeting (Thurs)

• US consumer sentiment (Fri)

Nvidia’s 10-for-1 stock split goes into effect on Monday, so we’ll be watching how the stock performs.

Gamestop has also been a rollercoaster, with the company filing to sell as many as 75 million new shares into the pump created by Roaring Kitty (aka Keith Gill).

Shares were down 40% on Friday after Gill’s livestream failed to excite retail investors:

It’s unclear if the company will host an earnings conference call on Tuesday since they pre-released earnings Friday morning, but if the call happens we’ll want to keep an eye on meme stocks.

We’ll also need to keep an eye on Tesla and its annual meeting this week, since shareholders will be voting to approve or reject Elon Musk’s massive 2018 share compensation plan.

Apple will also be in focus during its Worldwide Developers Conference (WWDC) this week, and the company could announce exciting AI enhancements to its Siri assistant.

In addition we’ll be keeping an eye on the following assets & sectors:

📈 Rising Recently:

• Semiconductors (SOXX / NVDA)

• Healthcare (XLV)

• Biotech (XBI)

• Nasdaq-100 (QQQ)

📉 Falling Recently:

• Government bonds (TLT / IEF)

• Energy (XLE / XOP)

• Gold & Miners (GLD / GDX / GDXJ)

• Homebuilders (XHB)

• Utilities (XLU)

• Regional Banks (KRE)

• Cleantech & Solar (TAN / PBW)

• Chinese stocks (KWEB / FXI)

Bitcoin ETFs Amass Over 1 Million BTC ₿

If you thought Bitcoin was just a wild west for tech enthusiasts and day traders, think again.

As of June 7, 2024, 34 spot Bitcoin ETFs have collectively amassed a staggering 1,031,973 BTC.

That's right, over a million Bitcoin are now snugly held in these financial vehicles, bridging the gap between traditional finance and the crypto universe.

• The heavyweight in the room is BlackRock, with its IBIT ETF holding a hefty 304,995 BTC.

• Trailing not too far behind is Grayscale's GBTC, securing 284,581 BTC.

• Fidelity’s WiseOrigin (FBTC) and ARK’s 21Shares (ARKB) are also showing significant muscle, with holdings of 173,739 BTC and 97,945 BTC, respectively.

Together, these four U.S. ETFs alone are responsible for a substantial chunk of the 883,978 BTC held by U.S. ETFs.

But it’s not just a U.S. show.

Internationally, Canada’s Purpose Bitcoin ETF (BTCC) is a force to be reckoned with, holding 26,957 BTC, while Germany’s ETC Group Physical Bitcoin (BTCE) stands tall with 20,837 BTC.

These ETFs highlight the growing global appetite for Bitcoin exposure through more traditional, regulated means.

What does this all mean for the average investor?

Simply put, Bitcoin's legitimacy and acceptance in mainstream finance are skyrocketing.

As institutional investors pour billions into these ETFs, the cryptocurrency gains more credibility and stability, attracting even more capital.

With over a million BTC now in ETF custody, the future of Bitcoin in traditional finance looks not just bright, but blindingly luminous.

GME: Trading Momentum Vs.
Investing On Hope 📈

GME (GameStop) is back in the headlines as the head of the big 2021 short squeeze, “Roaring Kitty” was back on YouTube Friday with his live stream to his loyal following.

Over 600,000 people tuned in live and the video has 2.3 million views as everybody awaited to hear what he had to say in regards to his recent purchases of the famous meme stock.

It's led to a lot of questions from professionals, and a lot of emotions amongst loyal meme stock investors.

Professionals are questioning what is GameStop management going to do with this new round of cash that they raised with share offerings.

We don’t actually know what price the 75,000,000 additional shares will be sold at yet, or if they have sold any of them (unlike people were claiming). The last round of 45,000,000 shares sold around $20 a share, raising $933,000,000 for the company.

Clearly, if the stock price holds up, they could end up really “raking in the dough” by padding their cash position to combat the cash burn they’re experiencing.

As Roaring Kitty explained on his live stream, he thinks the company may move towards a turnaround and/or “reinvention” of themselves.

Is this possible? Yes. Our own Travis Devitt, aka: StockGeekTV, has even mentioned the idea of them turning into an investment company.

If GME ditches their fading brick and mortar gaming business and pivots quick enough, this whole thing can interestingly enough, feed off of itself.

Retail traders are piling in again, HODL’ing and “waiting for the moon” which could lead to higher prices and more capital being raised by management (aka: share dilution for share holders!).

But if management pulls the turnaround or reinventing of themselves off, maybe the meme stock investors can win here (or at least not lose everything).

Of course, it’s all speculation on what management will do and what the future value of GameStop based on a turnaround should even be!

This leads to an important point: the key difference between trading momentum, and investing based on hope when it comes to meme stocks.

GME’s volatility has been a traders dream.

The trading opportunities may be far from over as a matter of fact.

It’s hard to say from here if price fizzles out as the hype dies down, or if this is just the beginning (but, we KNOW that anything is possible with this crazy stock).

There’s nothing wrong with skilled traders trying to capitalize on the opportunity.

Where things get a little cloudy, is all of the emotion that surrounds this stock. More so with people holding it as an investment.

As many people know, emotion is what gets you in big trouble with the market, and GameStop seems to attract pretty emotionally driven investors.

Emotion sort of like this:

There are endless posts on Reddit of people who are going back to the 2021 narrative that this is them against the market makers and hedge funds.

But, the scenario this time is possibly very different.

The short interest isn’t as high for one. It’s still a notable short interest, but, nothing like 2021.

Secondly, many people got so burned on the first 2021 short squeeze (including hedge funds!), that retail traders may not be as enthusiastic about participating in this again “for the greater good”.

Not only that, retail traders may not have the same type of capital to participate this time. 2021 was fueled by a lot of stimulus money allowing people to speculate.

Of course, what makes good market participants is staying open minded to anything happening.

If you want skin in the game as an investor “just incase” the reinvention of GameStop unfolds, size your position based on the risk that comes with speculation such as this (because truly, no one knows what management is actually going to do).

Not only that, don’t just assume the stock WILL in fact only go up.

Being a good market participant also means having a plan for if things work… and even more so if things DON’T work.

Simply put, there’s a big difference between trying to capitalize on momentum short term, and investing (especially more than you can afford to) based on a meme stock narrative that is charged by emotions.

Food For Thought 🧠

"Do not wait to strike till the iron is hot, but make it hot by striking.”
- William Butler Yeats

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.