Apparently, investment products (fancy term for “gambling with emojis”) saw $1.94B in outflows last week. That’s $4.92B in four weeks-the third-largest outflow since 2018. Bitcoin took the biggest hit at $1.27B, and Ethereum cried with $589M in outflows. 🥲📉
So, what’s the scoop here? Bitcoin’s recent plunge has made even the most hardened investors nervous, but it’s not the veterans who are getting jittery. No, no-it’s the shiny new whales who’ve joined the fray and, well, they’re cracking under the pressure.
Mr. Hougan, with all the charm of a man who’s seen it all, makes a bold claim-most digital asset treasuries are structurally designed to trade below the value of the crypto they hold. Why, you ask? Because of the trifecta of doom: illiquidity, expenses, and operational risks. Not exactly a winning formula, is it? Investors, the clever chaps they are, tend to discount these DATs, given that they can’t actually lay their hands on the crypto itself. “Why pay full price for bitcoin you’ll receive in a year?” Hougan quips, adding that any delays or complications immediately drive the market value down. Isn’t that just darling?
Well, butter my biscuit, the new week’s off to a start as gloomy as a dust bowl sky. Bitcoin’s already tuckering out, slinking down to $86,000 from its weekend high of $88,000. The CoinDesk 20 Index (CD20) ain’t doing much better, shivering like a dog in a winter storm, down to 2,758 from 2,816. 🤠💨
Let’s get the depressing stuff out of the way first. According to Google Finance (where dreams go to die), Strategy (MSTR) stock has plummeted nearly 60% in the last 12 months. Oh, and it’s down over 40% this year alone. Who needs drama TV shows when you’ve got this kind of action? A year ago, the stock was cruising near $300; today, it’s languishing around $170. 😬
According to Tom Lee, the wise man of Fundstrat’s research, the recent crypto carnage was less a market panic and more a classic case of “Oops, my bad,” powered by a brief stablecoin misfire. Because, of course, a flashing $0.65 isn’t a sign of market apocalypse – it’s just a glitch, folks. I mean, who needs stability when the system can randomly decide to play hide and seek with actual dollar values?
The whispers, you see, concern Exchange Traded Funds. Those mysterious instruments of high finance that even the most seasoned economists pretend to understand. Grayscale’s XRP ETF is slated to burst onto the scene on November 24th, having secured permission to grace the NYSE with its presence. A rather familiar tale; one recalls the pre-ETF frenzy surrounding Bitcoin, a rather larger and significantly less…peculiar…digital asset. It seems even they can benefit from a bit of manufactured hype. 😏
Its demise was so quiet, even the interns missed it. No grand farewell tweet, no chainsaw-waving goodbye-just a bureaucratic whisper lost in the wind.
The day’s drama unfolded after the SEC-yes, our favorite regulatory comedian-gave the green light to XRP and Dogecoin ETFs in quick succession. It’s as if Washington has finally realized the crypto buffet is more than just Bitcoin and Ethereum, and maybe, just maybe, they’re slightly less allergic to altcoins now. Approvals flashing faster than a meme trend suggest a phoenix rising-possibly from an SEC-approved ash cloud.
XRP, the cheeky scamp, extended its losses below $2.00, just like its posh friends Bitcoin and Ethereum. It even dipped below $1.90 before the bulls, those jolly old chaps, came to the rescue. A low was formed at $1.8177, and now it’s trying to recover with all the grace of a unicycling clown. 🌟
