On July 26, 2002, a new investment vehicle arrived on the market and opened the doors to a $253 trillion asset class for retail investors…
Before the creation of this investment vehicle, this asset class was largely the domain of investors wealthy enough to meet the hefty minimums required to buy them on the open market.
You needed a special broker to access the market. That meant paying higher fees and commissions.
Or you had to buy one of the more expensive mutual funds that gave you exposure to this market. That meant finding a fund manager whose investment views aligned with your own.
But in July 2002, all that changed.
That’s when iShares launched four exchange-traded funds (ETFs). For the first time, retail investors had direct exposure to the $253 trillion global bond market.
These four ETFs were a major step forward in allowing average investors to create their own well-rounded fixed-income portfolios.
Today, there are now 325 bond ETFs with $540 billion in combined assets. And some of the largest bond ETFs see over $2 billion in daily volume.
The creation of the bond ETF isn’t the only time we’ve seen a new investment vehicle open the floodgates of capital to an existing asset class.
In November 2004, asset manager State Street launched the SPDR Gold Shares (GLD) ETF. Seven years later, it became the world’s largest ETF at the time.
Like other ETFs, GLD is a security that trades like a stock. The goal of the fund was to expose more people to gold ownership without the drawbacks of owning physical gold.
If you have a lot of physical gold, you have to pay to store and insure it. Gold ETFs track the price of physical gold. So they’re much more liquid than the metal.
GLD was an immediate hit…
By the end of 2004, it had already accumulated $1.3 billion in assets. Today, the ETF has a net asset value of over $59 billion. And it’s still the world’s largest private owner of gold bullion.
Like with bond ETFs, the majority of participants in the gold ETF had never bought gold before. It’s estimated that 60–80% of GLD buyers were new to gold.
Thanks to the ETF structure, you can buy a basket of hundreds of bonds or gain exposure to physical gold with the click of a mouse.
For many individual investors, these vehicles opened access to asset classes they never thought of owning before.
Once they could buy the asset via a simple vehicle, demand soared.
For instance, according to market research firm IHS Markit, bond ETFs have helped push the global ETF industry past $4 trillion in assets under management.
As you can see, the success of bond and gold ETFs shows the huge impact a simpler investment vehicle can have on an asset class.
Here’s why I’m telling you this…
The New $45 Billion Crypto Fixed-Income Market
We’re about to witness a similar moment to the launch of the bond and gold ETFs come to the blockchain. And it could potentially unleash $45 billion in income.
I’m talking about Ethereum’s Shanghai upgrade.
Just like bond ETFs made it easier to gain exposure to the fixed-income markets, the Shanghai upgrade makes it easier for investors to generate income from Ethereum.
The Shanghai upgrade completes Ethereum’s upgrade to proof-of-stake by enabling withdrawals of staked ETH for the first time since it began its makeover in December 2020.
Since 2020, anyone could earn income by staking their ETH… But they couldn’t access the capital. With the Shanghai update, they can now access their capital.
That means buying and earning income on Ethereum is now as easy as buying a bond or gold ETF in your brokerage account.
You can simply deposit cash onto an exchange like Coinbase or Binance and start earning income on your ETH with just a few clicks.
During the next bull market, I believe staking rewards could swell to $45 billion annually. And that’s assuming the percentage of ETH staked remains constant.
Today, there’s roughly 18 million ETH staked… and stakers are earning roughly 4–6%.
But during periods of high network activity – like we saw in the days surrounding the FTX collapse and the banking crisis in March – this yield climbed above 10%.
That’s because users are willing to tip network validators more to give them priority and execute their transactions faster.
When the bull market resumes, we can expect network activity to explode higher – like it did from 2020–2021.
That would translate to roughly 1.8 million in ETH paid out each year to stakers. Or $3.4 billion in income if Ethereum remains at $1,880.
However, Ethereum could soar to $25,000 during the next bull market. That’s about a 5x increase from its previous all-time high.
If so, we could see roughly $45 billion per year paid out to Ethereum stakers.
But there’s an even bigger catalyst on the horizon that I believe will open the floodgates to nearly $20 trillion in investible capital.
And it’ll make the Shanghai upgrade look like a puddle by comparison.
A $20 Trillion Crypto “Bank Run” Starts June 1
Friends, any time a new vehicle opens an asset class to retail investors, it explodes in value.
We saw this in the early aughts with gold and bond ETFs. And we’re about to see a similar opportunity open up in crypto due to the Shanghai upgrade.
But there’s a much bigger opportunity on the horizon. And I believe it could happen as early as June 1.
That’s why I’m hosting an urgent online strategy session at tomorrow at 2 p.m. ET to give you all the details.You can click here to automatically reserve your spot.
Thanks to my connections in the crypto space, I’ve just obtained critical intel that a new banking regime is set to take effect June 1.
This date has been set by the financial authorities involved in this new catalyst.
I believe this new regime will trigger a massive bank run that will open a rare window of opportunity where the impossible becomes possible.
I’m talking about the opportunity to turn $1,000 into a massive six- or seven-figure payout.
And tomorrow at 2 p.m. ET, I’ll give you all the details about this new regime.
I’ll also discuss three new coins I’ve never recommended before. And even give away my entire crisis-proof portfolio during the session for free.
This is a portfolio that should do well no matter what happens with the economy. All you have to do is attend to get it. No strings attached.
Just click here to automatically register for my event. And I’ll see you on Tuesday.
Let the Game Come to You!