May & June Developments in Crypto

To my Crypto Curious people, First, I apologize for the delay in the May addition, I have been extremely busy building my insurance brokerage lately so I had to push the publication to July. The good news is that you get a double newsletter this month. May was a bloody month in crypto. It was headlined by a 50%+ correction in bitcoin from its April high of over $63,000 and many altcoins suffered even greater losses. June saw fairly stagnant price trading after the May pullback but was bolstered by the biggest news in crypto to date. The nation of El Salvador making Bitcoin legal tender and an official currency of the country. More on that in the June news section below. Before I dive into the noteworthy news for May and June, I want to make a very important point. As an investor, it’s extremely important to differentiate between the price action of an asset and the fundamentals of an asset. Price action is emotional and is many times influenced by irrational behavior whereas fundamentals are all about the progress of an asset. If you want to be a good investor, you need to pay attention to the correct “P.” Stop looking at Price and start looking at Progress. In my opinion, the price action and the fundamentals in cryptocurrency assets have never been more disconnected than right now. If you are confused by this statement then please read the rest of this newsletter and I think you’ll have clarity about what I’m saying at the end. Let’s dive into the fundamental news for crypto over the last two months: May news: * CNBC Reports Ebay CEO is looking at Bitcoin and crypto payment options * MLS Soccer Player, Ifunanyachi Achara is now taking half of his salary in BTC * In a poll by JP Morgan 62% of clients say they would switch financial advisors to one that offers advice about crypto * Mastercard polled 15,569 consumers in 18 countries; 40% said they plan to use cryptocurrency in the next year * Sotheby's accepted cryptocurrency via Coinbase for Banksy's "Love is in the Air" at auction * MercadoLibre, another public company, added bitcoin to their balance sheet * Galaxy Digital to Buy BitGo in Crypto Sector’s First $1 Billion Deal * The New York Giants announced a partnership with Grayscale to help shepherd them into the crypto age * Goldman Sachs leads $15m investment in #Bitcoin data company @Coinmetrics * Ray Dalio’s CFO just left to become the CFO of NYDIG (a leading crypto & financial services firm for institutions) * Goldman Sachs announces crypto trading team * VanEck files for an Ethereum ETF * #Stellar To Power @VISA’s New Partnership * PRW Wealth Management with $521M AUM bought 80,833 shares of Grayscale Bitcoin Trust * Tom Brady went laser eyes on Twitter in support of crypto * Hungary is planning a crypto tax cut to fuel economic recovery * Elon Musk halted Tesla’s acceptance of btc on May 12 due to environmental concerns. Statement Below: * Sony files patent for service that would accept in-game Bitcoin payments * The world’s largest collector car auction company, Mecum Auctions, now takes payment in btc * Cathie Wood and ARK invest $20M in the Grayscale Ethereum Trust * China bans cryptocurrency mining and throttles trading activity, causing miners to relocate to other countries * One of Asia's largest banks, DBS Bank, says Bitcoin is an opportunity that (fiat) money can't buy * Tezos partners with Red Bull’s F1 Racing team for the first crypto sponsorship in F1 * China’s BIT Mining Limited, a major #bitcoin mining firm, confirms an investment of $25.74 million to build a data center in Texas. * Former US treasury secretary and chief economist at the World Bank, Larry Summers, says #cryptocurrency is here to stay as a kind of digital gold. #bitcoin * Ray Dalio, the founder of the largest hedge fund on planet earth, bought bitcoin * Globant, an NYSE-listed IT services firm worth $8.7bn has bought $500k #Bitcoin * London's largest finance lobbyists are now calling on United Kingdom's legislators to adopt cryptocurrency. In a new report, TheCityUK’s Council says they hope the UK "takes a world-leading position in this high-growth, high-potential sector." * Colorado Governor Jared Polis wants state residents to be able to pay their state taxes with crypto and is working towards that goal * Africa is leading the world in peer-to-peer #bitcoin trading volume growth, with 22% in the last three months * Billionaire Carl Icahn, considered by many to be the GOAT investor, eyes potential $1.5B crypto-investment * The Reserve Bank of India states that banks can't stop investors from investing in crypto even though it is currently outlawed in India. June news: * One of the UK's biggest banks, Standard Chartered, to launch an institutional crypto brokerage and exchange in Europe * In a poll by CNBC, 14% of financial advisors are using or recommending #Bitcoin and crypto, up from less than 1% in 2020 * German exchange ‘Boerse Stuttgart’ has launched its own app for trading, it is Germany’s first regulated exchange for digital assets * El Salvador announced it will be the first country accepting #Bitcoin as legal tender. This is massive news, and came 5-10 years before any one could have expected. The bill was passed on June 8th and passed with a supermajority in the Salvadoran Congress with 62 out of 84 votes in favor! Shortly after the bill was passed, politicians from Argentina, Brazil, Panama, Paraguay, Uruguay, Honduras, and Tonga all tweeted the desire to pass #Bitcoin Bills similar to El Salvador in their home countries. Paraguay plans to legislate on this in July. MASSIVE NEWS!!!!!!! * Square is investing $5M to build a solar-powered #bitcoin mining facility * Andreessen Horowitz, one of the worlds top VC firms, just launched a $2.2 billion crypto fund * Asset management firm with $157B AUM, Victory Capital, announces plans to enter the crypto market and will launch private funds for accredited investors that track the Nasdaq Bitcoin Price Index & Ethereum Price Index * Invesco, a trillion-dollar asset manager files for crypto ETF, the ETF will invest primarily in companies in the crypto space as well as up to 10% in bitcoin futures. * Texas will now let state banks hold Bitcoin * MicroStrategy completes $500 million offerings of 6.125% senior secured notes to acquire more Bitcoin * Russian Foreign Minister Sergei Lavrov stated that #cryptocurrencies will have an important role in international settlements * Suze Orman, the finance guru, said about bitcoin "I still think for the long run ... it’s a place to put some money and just leave it," essentially approving it to her audience * According to an Intertrust survey, 98% of Hedge Fund CFOs expect to invest in #Bitcoin and crypto in the next five years * The Canadian Elite Basketball League (CEBL) will now allow its players to be paid in Bitcoin. * Portugal just granted the first #Bitcoin exchange licenses in the country * China logistics firm in Guangzhou will airlift 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA * The President and CEO of the Federal Reserve Bank of Dallas just said we can't assume the US dollar will remain the world's reserve currency indefinitely * Swiss bank Dukascopy launches #Bitcoin, Ethereum, and Litecoin CFD trading * Paypal and Visa have invested in @blockchaincap's $300 million fund that will invest in crypto startups * Coinbase has been approved as a crypto exchange in Japan * The first Latin American #Bitcoin ETF launched on 6/23 in Brazil * “I’m Putting My Billion In #Bitcoin” says Billionaire Ricardo Salinas * Citigroup, which owns the 4th biggest US bank, has opened a crypto/blockchain division * Bitcoin is becoming the new gold in India. Indian’s investment in crypto went from $200 million to ~$40 billion in the last year. * Morgan Stanley bought 28,289 shares of Grayscale #Bitcoin Trust. This is a new position. * ARK files for a bitcoin ETF * Tom Brady will partner with FTX, a crypto exchange. Tom will get equity in FTX and a bonus that will be paid in crypto * The San Francisco Deputy Sheriff’s Association put bitcoin in their investment portfolio. * 650 banks will be able to offer bitcoin purchases to ~24 million customers thanks to NYDIG * On July 1st, Germany allowed 4,000 investment funds - managing $1.8 Trillion - to invest up to 20% in #Bitcoin As you can see, the fundamentals don’t always align with the price. There are so many exciting things happening in the space. More to come next month! I really hope you found value in this letter and I look forward to talking to you all next month. - Spencer This is a public episode. 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