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👀 TWO things you can't miss this week

👀 TWO things you can't miss this week

PLUS: Bitboy & Tom Bilyeu

Alex M.
August 29, 2023

GM everyone. This is 2036, the crypto newsletter that pays you.

Here’s what we’re serving up today 🍲: the crypto market is on its toes this week. If things go well, it could be a BIG week.

Let’s dig in.

🥔 Today’s meat and potatoes

Get smarter on crypto in 2 minutes

Two big things are happening this week in crypto:

1/ A court is expected to deliver its ruling on SEC v. Grayscale.

We’ve talked about Grayscale before.

Grayscale was one of the US's first providers of a publicly traded bitcoin fund - the Grayscale Bitcoin Trust ($GBTC in your brokerage account).

Two years ago, Grayscale applied to have $GBTC converted into an ETF. This would:

eliminate the discount it was trading at relative to its assets
reduce fees for holders.

But the SEC refused, and Grayscale sued them. A court ruling on the outcome of the case is expected (but not guaranteed) today.

Here’s why that’s important: if Grayscale wins, it paves the way for other Bitcoin ETF applications to be accepted shortly. This would likely send bitcoin higher immediately 📈

On top of that, the discount on GBTC (and its other products) - now -26% - would close very fast.

That’s why Grayscale products are one of the arbitrage opportunities in our new section below.

Experts predict a 70% chance that Grayscale will win 👀

2/ The SEC’s first response to a bitcoin ETF application is today.

A bunch of large companies have filed for Bitcoin ETFs. And the SEC has a set deadline by which they have to respond (45 days for its first response after filing and 240 days before its final decision).

Every time, the SEC can either:

approve
deny
delay

… and their first deadline is today. They must respond to all 8 filings by Friday.

First in line is a bitcoin ETF by Ark Invest, the company headed by the most badass woman in finance, Cathie Wood.

Here’s why it’s important: a bitcoin ETF in the US would open the floodgates for institutional capital.

Bar the halving it would be one of the most important events in years.

And at this point, it’s inevitable.

In the past, Blackrock - the world’s largest asset manager and next in line for a bitcoin ETF - has filed for 576 ETFs. They’ve only been refused once.

A Bitcoin ETF isn’t a matter of ‘if’ but ‘when.’

There are rumors the SEC wants Binance out of the US before they approve any legislation.

So we’re not holding our breath for an approval today. But if it were to happen, it would wake up the market 🔥.

If you’re impatient, Canada already offers some good Bitcoin and Ether ETFs.

One, in particular, is about to enable staking yield as part of the Ether ETF… which will also inevitably come to the US.

That’s why we’re keeping all eyes on $ETHE, Grayscale’s Ethereum investment product.

Because if GBTC is up, ETHE will be right behind.