Don't Fear All-Time Highs

IN THIS PUBLICATION:

• Spot Bitcoin ETF approval has been pushed back to January 2022.

• BITO’s first mover advantage has led to significant inflows outperformance versus BTF.

• Buying Bitcoin at new All-Time Highs has historically brought positive returns to investors.

Recent Developments

• Former customers of Mt. Gox, the crypto exchange that filed for bankruptcy in 2014 after it was discovered that the 850,000 Bitcoin it held on behalf of customers was stolen (200,000 of which were eventually recovered), have almost unanimously approved the final settlement proposal and are awaiting confirmation from the Tokyo District Court.

• This means the former customers will receive c. 21% of their original claims (c. 138,000 BTC, some Bitcoin Cash, and some fiat), which potentially increases the risk of new supply hitting the market as Mt. Gox creditors take profits after seven years of court disputes (talk about ROI… maybe forced HODLing should be a new investment strategy?).

• With Bitcoin finally receiving some level of regulatory approval ETF-wise, some started wondering when a US-based Ethereum ETF will be approved. We believe that’s likely to be at least a couple of years away as (1) there was an almost 4-year interval between the launch of Bitcoin and Ethereum futures on the CME, (2) volumes on ETH futures are c. 30% lower than BTC, and (3) there is a more limited trading history given that BTC was created in 2009 and ETH in 2015.

• Nike has filed to trademark virtual goods, which will be a future case study on how the most reputable brands may be able to protect themselves and monetize the Metaverse, whilst Tarantino is now releasing lines of secret NFTs (only viewable by the owners) based on the original Pulp Fiction script which he claims to have “never been shared with anyone before”. English Crypto mother fu******, do you speak it?