Kris’ note: Overnight, gold hit a new all-time high.
Even silver put in a show – almost touching $26 per troy ounce.
But the real focus is bitcoin.
It climbed to its highest level since May 2022.
And it’s partly due to the likely impending approval of a bitcoin exchange-traded fund (ETF) by the SEC (Securities & Exchange Commission).
If (or as we believe, when) that happens, it will create one of the biggest surges into an investment asset class in history.
The folks who have always found it too hard to buy and own bitcoin will have a simple way to do it… right in their brokerage account.
And if you’re in any doubt about the impact this will have. Check out the following chart…
It’s a 45-year chart of the gold price. We marked the point when the first gold ETF was launched on the New York Stock Exchange.
That was back in November 2004. Since then, the gold price has gained more than 400%.
If the same thing happens to the bitcoin price… the cryptocurrency would hit $200,000.
But the ETF is just one of the catalysts set to push the bitcoin price higher over the next few years.
Arguably, it’s not even the most important one. As guest essayist Teeka Tiwari explains today, the main factor will be what he calls a “third wave” of crypto profits.
Your editor will let Teeka explain what he means by that below, and we’ll see you at the end for some “Unconnected Dots.” Read on for more…
Market Data
The S&P 500 closed down 0.5% to end the day at 4,569.78… the Nasdaq fell 0.8% to close at 14,185.49.
For individual stocks, Microsoft closed down 1.4% to $369.14… Apple ended lower by 0.9% at $189.43… and Tesla ended the day at $235.58, a 1.36% fall.
In commodities, West Texas Intermediate crude oil trades at $73.30, down 77 cents since this time yesterday… gold is $2,042 per troy ounce, a loss of $41.40… and bitcoin is higher by $1,838.10 at $41,824.10.
And now, over to Teeka Tiwari…
In 2015, Digital Currency Group launched a new closed-end fund called the Grayscale Bitcoin Trust (GBTC).
For the first time in bitcoin’s history, anyone could invest in bitcoin in the public markets.
The fund opened the door to institutional investors like hedge funds, mutual funds, and pension plans that wanted exposure to bitcoin but couldn’t own it directly.
Around the same time, Coinbase opened the first regulated bitcoin exchange in the United States. The platform made it easier for investors to buy and sell bitcoin.
These products opened the floodgates of capital coming into bitcoin.
As you can see in the chart below, from its low in January 2016 to its high in July 2018, the number of crypto assets under management exploded 3,642%.
Here’s the thing…
From November 2013 to January 2015, bitcoin plunged from $1,127 to $172 – an 85% massive pullback from peak to trough.
When I saw all these institutions begin to move some serious capital into crypto after that crash… That’s when I knew it wasn’t a scam.
I realized it was a revolutionary idea that would create millionaires. That’s when I decided to start writing about crypto.
I recommended bitcoin in 2016 at around $400 and Ethereum at around $9.
At the time of this writing, they’re up 9,955% and 22,985%, respectively. That’s enough to turn every $1,000 into $100,550 and $230,850.
This was during what I call the First Wave of crypto profits. But the Second Wave was even bigger…
In late 2018, Fidelity started offering crypto custody and trading for hedge funds and family offices.
Fidelity is the third largest asset manager in the United States, with more than $3.8 trillion under management.
Once Fidelity got involved in crypto, I knew other financial firms would soon follow.
Wall Street is greedy. It would never let just one competitor dominate a new asset class like crypto.
So everyone on Wall Street got involved.
For the first time, pension funds started to invest directly in bitcoin.
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The New York Stock Exchange launched its bitcoin futures product.
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Goldman Sachs started offering bitcoin trading to its customers.
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And even JPMorgan Chase got involved.
By 2019, we saw billions of dollars coming into the crypto market. And in 2020, the entire asset class skyrocketed.
You can see the explosion in the chart below…
When I saw this new capital coming into crypto, I started making a series of new recommendations.
This Second Wave of profits gave my readers the chance to turn $1,000 into $40,550, $122,930, and even $761,330.
Here’s why I’m telling you this: The floodgates are about to open again.
This New Venture Will Kick Off a $100 Trillion Crypto Trend
The biggest banks on Wall Street are betting their future on an exciting new crypto trend that could transform the entire financial markets.
I call this the Third Wave of crypto profits.
Now, you’re probably thinking this wave involves a spot bitcoin exchange-traded fund (ETF).
After all, bitcoin is up 124% since this time last year. And it’s outperformed every other asset class in 2023.
Most of the demand this year has been fueled by speculation over the approval of a spot bitcoin ETF.
ETFs are investment funds you can trade on stock exchanges. They provide investors with an easy way to invest in an index, sector, commodity, or other asset.
The biggest player here is BlackRock, which manages nearly $10 trillion in assets. That’s almost the same size as the entire $12 trillion gold market.
Fidelity, Invesco, Franklin Templeton, WisdomTree, and Ark Invest are all lining up to get a spot bitcoin ETF approved by the Securities and Exchange Commission (SEC), too.
Combined, these Wall Street titans manage $16.2 trillion in assets.
Once the SEC approves a spot bitcoin ETF – and I believe it’s a matter of “when” and not “if” – millions of investors will be able to own bitcoin without the headaches that come with it.
They won’t have to worry about how they’re going to securely hold the asset… or about the fear of losing their nest egg if they accidentally send it to the wrong address.
So I absolutely believe a spot bitcoin ETF will funnel billions of dollars into crypto…
But the inevitable approval of one of the many spot bitcoin ETFs under review by the SEC isn’t the venture I’m talking about.
An ETF approval will primarily impact bitcoin, which has a market cap of about $720 billion.
What I’m talking about could be orders of magnitude bigger.
According to my research, this Third Wave of crypto could be a $100 trillion opportunity.
That’s almost 150x bigger than bitcoin’s entire market cap.
And the mainstream media is completely missing it…
Your Third Opportunity for Massive Payouts
Friends, some of the biggest players on Wall Street are about to launch a new crypto venture by the end of this year…
And I believe it’ll help trigger crypto’s next mania phase of the bull run – what I call the Third Wave of profits.
I’ve only seen this kind of opportunity in 2016 and 2018.
On both occasions, my readers had multiple chances to turn $1,000 into massive six- and even seven-figure payouts.
If you missed out on those gains, you now have a third opportunity.
On Wednesday, December 6, at 8 p.m. ET, I’ll pull back the curtains on this venture… and how it could potentially unleash a $100 trillion opportunity.
I’ll also share details of five tokens I believe are best positioned to ride this wave. And I’ll even give you the name of a coin that could 8x your money, completely free of charge – just for attending.
Click here to automatically RSVP.
And if you upgrade to VIP status, I’ll send you a free bonus: a special report called The $0.50 AI Coin That Could Triple Your Money in 2024.
This coin is part of a new breed of cryptos called artificial intelligence (AI) tokens.
According to consultant firm PwC Global, AI is the largest megatrend of our generation… And it estimates it will create $15.7 trillion in new wealth.
As a VIP, you’ll also receive complimentary text alerts about this event to make sure you don’t miss our strategy session.
To upgrade, it’s very easy and free. Click here to learn more.
Friends, what’s at stake during this Third Wave is nothing less than generational wealth.
I’m talking about the opportunity to financially secure your future… but wealth that transports beyond your lifetime, securing the future of your children and their children.
Let the Game Come to You!
Big T
Unconnected Dots
Our main task at the Daily Cut is to try to “connect the dots.” That is, we help you figure out what events are about, what makes them important, their consequences, and what it all means for you.
But sometimes, we see the individual “dots,” but can’t yet figure out how they connect to anything. Maybe they never will connect to anything.
Regardless, if those unconnected dots feel as though they could be important, we’ll mention them here. And we’ll let you draw your own conclusions.
Today’s unconnected dots…
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Here’s supply, demand, and price in action folks. From the Financial Times:
The price of corn has tumbled to a three-year low as supplies from the US and Brazil surge while demand stagnates, helping to cool food price inflation but heaping pressure on farmers who had been expecting high prices to last.
Corn, which is used predominantly for animal feed and to produce ethanol, has been trading below $4.50 a bushel in Chicago in recent days, its lowest level since December 2020. It had been trading above $8 a bushel in May last year.
The fall in prices, which has come after U.S. farmers expanded their crop acreage last year in response to high prices, just as demand was dropping off, is proving a boon for hedge funds, who have been raising their bets on price falls.
As the saying goes, the cure for high prices is high prices. It results in increased production or supply. That pushes prices down.
Then producers and suppliers make cuts. Some go out of business. It creates a shortage. Prices go up. And on it goes.
As a perfect illustration of this, we’ve always enjoyed the following chart. It’s the Baker Hughes Rig Count of U.S. oil and gas rigs (blue line) overlaid with the crude oil price (red line).
It shows the correlation between the oil price and the number of rigs producing oil and gas. As the red line falls, the blue line follows lower soon after.
As the red line increases, the blue line follows soon after. It’s a wonderful image of the free market economy in action. It’s a shame governments, bureaucrats, and central banks try to screw around with it so much.
More Markets
Today’s top gaining ETFs…
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Siren Nasdaq NexGen Economy ETF +3.7%
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Amplify Transformational Data Sharing ETF +3.5%
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Invesco S&P SmallCap Consumer Staples ETF +2.2%
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Invesco S&P SmallCap 600 Pure Value ETF +1.5%
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First Trust Flexible Municipal High Income ETF +1.5%
Today’s top losing ETFs…
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KraneShares MSCI All China Health Care Index ETF -4.4%
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U.S. Global GO GOLD and Precious Metal Miners ETF -3.2%
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iShares MSCI Chile ETF -3%
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Global X Lithium & Battery Tech ETF -3%
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iShares MSCI Global Metals & Mining Producers ETF -2.9%
Mailbag
If you have any questions or comments for our experts here at Legacy Research, we’d love to hear from you.
Write to us at feedback@legacyresearch.com and just type “Daily Cut mailbag” in the subject line.
Cheers,
Kris Sayce
Editor, The Daily Cut