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- 👀 It happened
GM everyone. This is a special edition of 2036.
I woke up this morning and saw two things I’ve been waiting 9 months for:
The eyes of my freakishly cute newborn son 👶
Ethereum over $2,000 on great news
I hadn’t planned to write this (short) newsletter today. But how could I not.
Here’s how to trade the Ethereum ETF.
Let’s dig in.
On Monday, I gave you the rundown of what I was looking at in crypto:
Ether (and $ETHE): undervalued given a probable Ether ETF soon
Bitcoin miners: undervalued relative to transactions and fees rising on the Bitcoin network
Solana: the current bullish trend
Illuvium: a great gaming project with new token economics that could take off soon
… and what a week.
Illuvium is up +70% since Monday’s email. Solana, +30%.
Bitcoin miners are mostly flat (but remain a great long-term play).
But the winner of the week is Ether.
Yesterday, we learned that Blackrock is preparing to file for an Ether ETF.
This is huge news we’ve been waiting for.
Ether is up +10% in the last 24 hours as a result. But I expect this is just the beginning.
In every crypto bull market, Ether typically rallies after bitcoin.
But with the added fuel of an ETF, Ether could rally much further.
You might already own some Ether in your portfolio. But if you don’t - here are some ways to make the most of the upcoming rally:
1/ $ETHE 🥇
ETHE is my favorite way to trade the Ether ETF.
The Grayscale Fund is one of the great arbitrage opportunities available with just a regular brokerage account.
ETHE is already up +238% to date.
But it’s still trading at a -16% discount to the value of its underlying Ether.
We squeezed most of the juice out of GBTC - and ETHE still has some way to go.
If ETHE gets converted into an Ethereum ETF, the discount will close, and investors will outperform Ether.
2/ $COIN 🥈
If you want to keep your funds in your brokerage account - another way to trade the Ether ETF is to own Coinbase stock - $COIN.
Coinbase is one of the largest providers of ETH staking. And it captures a disproportionate amount of activity in crypto.
For a quick rundown of the investment case for Coinbase stock, read this.
3/ Lido 🥉
If you want to stay on-chain, look at Lido. It is the biggest provider of liquid staking services for the Ethereum network.
On news of the potential Ether ETF, Lido soared +40%.
If the news pan out and the ETF gets approved, Lido could go much higher.
BONUS: Ethereum Layer 2s
Ethereum Layer 2s try to scale Ethereum - to make it faster and cheaper.
And some of the best positioned to dominate the niche are Arbitrum and Optimism.
Layer 2s are like derivative bets on Ethereum and should outperform it.
They’re both up 5-10% on the news.
Now, you could also go the old-fashioned way and just hold Ether.
You can hold it in cold storage or stake it for extra yield (using Lido or Coinbase).
In either case, the race for the Ether ETF has begun.
No ETF approval is guaranteed, of course.
But now that the SEC could be compelled to approve all Bitcoin ETFs in the next seven days, crypto markets should move much higher with regulatory certainty.
I’ll be taking care of my newborn son (did I mention how cute he is?), but will keep checking in with any new trade ideas and insights that could help you make $$.
In the meantime, enjoy the green on the screen ✅
