In 1990, oil trader Andy Hall made a bet that earned him the nickname “God.”
Hall was one of the most successful oil traders of all time. He was on the right side of some of the biggest oil trades in history.
He made a fortune during his nearly 45-year career. But his most famous trade came in 1990 when cheap oil prices created tension among OPEC members.
To bet on oil prices rising, Hall rented every oil tanker he could… filled them with cheap oil… and parked them at sea.
He could see tensions in the region were reaching a breaking point. And by August 1990, Hall’s prediction played out… Iraqi dictator Saddam Hussein invaded Kuwait.
Oil prices soared 10% overnight. And within the next few months, they more than doubled.
Hall made an absolute fortune while most investors watched from the sidelines.
You see, investing in oil in the 1990s was a market that only the big players could operate in. Even if you came to the same conclusion that Hall did, you couldn’t make the same bet.
Without an exchange-traded fund (ETF), there wasn’t an easy way to bet on the oil price. The commodities market was closed off to investors like you and me.
The closest you could get to betting on oil was buying oil companies. But that came with additional risks. And it wasn’t guaranteed that an oil company’s stock would reflect an increase in oil prices over a short period of time.
Wall Street would eventually wake up to this massive opportunity.
All it needed to do was make commodities accessible to retail investors, and it could rake in hefty fees by doing so. It was a prime area of the market for Wall Street to set up shop.
Here’s why I’m telling you this… Crypto is very similar to commodities in this regard.
Like commodities, cryptocurrencies are difficult to buy. And they’re a headache to take ownership of.
You have to worry about trusting a third party like an exchange to properly manage your assets. Or you need to take self-custody of the assets, which means you could be at a total loss if something goes wrong.
Solving this problem is Wall Street’s bread and butter.
It did it with commodities. And it’s about to do it again with crypto.
When this happens, a wave of money will flow into the space… making investors who position themselves ahead of this move massive profits.
Unlocking Crypto Markets for the Masses
If you’re a regular reader of Palm Beach Daily, you know that the first spot bitcoin ETF is almost certainly a done deal.
You have the biggest asset manager in the world, BlackRock, banging down the door of the Securities and Exchange Commission (SEC).
We’ve seen small asset managers file to create a bitcoin ETF in the past… But none that compare to the size and power of BlackRock, which manages nearly $10 trillion in assets.
That’s almost larger than the entire $11 trillion gold market.
Just look at BlackRock’s track record. It has filed roughly 550 ETFs. The SEC has approved all but one.
Even former SEC Chairman Jay Clayton recently said that regulators would find it “hard to resist” approving a spot bitcoin ETF, according to Yahoo Finance.
So when you see that Wall Street is on the verge of making a bitcoin ETF, you need to ask yourself where the ball is headed next.
Just as Wall Street started with commodities like oil but then made dozens more ETFs, the same will be true for bitcoin and other crypto assets.
First, you’ll see crypto’s largest and most trusted asset, bitcoin, get an ETF. Then you’ll see Wall Street move down the line and give other large crypto assets ETFs.
The second crypto asset to get an ETF will be Ethereum (ETH). It’s the second-largest crypto asset by market cap. And it’s the most profitable blockchain with the most developers working on it.
In fact, we’re already seeing signs that this will be the next ETF.
Earlier this month, crypto news outlet Blockworks reported that two sources said the SEC has indicated it’s ready to consider a futures ETF for Ethereum.
Since then, we’ve seen a rush of ETF fillings. In total, 13 companies have filed for an ETH ETF, including ProShares, VanEck, and Direxion.
The race to launch crypto ETFs has already started on Wall Street.
While over $100 billion has flowed into commodities since Wall Street made them more accessible, Daily editor Teeka Tiwari believes we could see over $1 trillion flow into crypto once investors have easy access to the space.
If Teeka’s prediction comes true, there’s no greater opportunity you’ll find in the markets today.
I know $1 trillion flowing into crypto might sound like a lot when compared to the $46 trillion U.S. equities market or the $43 trillion U.S. real estate market… But crypto assets are just a tiny sliver of most people’s portfolio.
According to a study by Boston Consulting Group, crypto assets as a percentage of individual wealth is just 0.3%.
Equities, on the other hand, make up roughly 25%.
With $530 trillion in global wealth, crypto would only need to grow to 0.5% of individual wealth to see $1 trillion flow into the space.
History shows that when capital gets easy access to an asset, the price moves fast.
When gold got its first ETF back in 2004, over $85 billion flowed into gold ETFs within seven years. This helped push the price of gold nearly 4.5x higher over those seven years.
It doesn’t take much buying power to move the needle on an asset that investors simply buy and sit on for a long period of time like gold. The same will be true for crypto.
The Perfect Buying Opportunity
If you’ve been watching the crypto markets the past week, you know there’s been a lot of volatility. Bitcoin and Ethereum are both down 12%.
While many crypto investors are biting their nails and wracking their nerves over the pullback… At the Daily, we’re licking our chops.
You see, this is the perfect buying opportunity.
Here’s why…
The SEC has until September 2 to either approve, deny, or delay its decision on BlackRock’s ETF.
Now, the SEC will likely choose to delay. But just in case it approves it, you don’t want to wait to position yourself until after the ETF filing goes through, and money starts flowing in.
Doing so would prove to be a costly mistake.
The two best assets you should own today to profit from this trend are bitcoin (BTC) and Ethereum (ETH). They’ll be the first to benefit from Wall Street opening the crypto floodgates. Plus, you can scoop them up at a discount with the current pullback.
If you’re looking for more upside potential in crypto, Teeka has uncovered a tiny subsector of coins that’ll get a boost from the rollout of central bank digital currencies, or CBDCs.
You see, the Federal Reserve recently launched a program that could lead to a mandatory recall on the U.S. dollar.
Teeka believes this program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
And he’s put together a briefing to explain what this new digital dollar regime means for you and your money… and share details about a crypto project laying the groundwork for its potential rollout.
He’ll also show you the one move you must make when your bank tells you it’s moving all your cash into this new digital dollar. You can watch it for free right here.
Regards,
Houston Molnar
Analyst, Palm Beach Daily