📝 What to buy after the Bitcoin ETF?

GM everyone. This is 2036. We scroll for gems all day so you don’t have to.

Here’s what we’re serving up today 🍲: the Bitcoin ETF is 28 days away. After the ETF is approved, all eyes will turn to the next narrative. What will it be?

Let’s dig in.

The Bitcoin ETF will likely get approved latest on January 10.

I expect it will be a “buy the rumor, buy the event” news. Many institutions are sitting on the sidelines, just waiting for the ETF approval to start buying bitcoin.

But as investors, our job is to look where others aren’t.

For now, all eyes are on the Bitcoin ETF.

But after the approval, I expect attention will shift to massively underappreciated asset:

Ether (ETH).

Here’s why:

1/ Right now, investors are buying $ETHE instead of ETH. But that will soon change 💱

The Grayscale Ethereum Trust ($ETHE) is a way to buy Ethereum at a huge discount to its actual value.

Investors picked up on this. This year, ETHE is up +274% as the discount narrowed from -59% to -13%. 

That means investors are buying exposure to ETH, but it isn’t reflected in its price…yet.

As the discount narrows, investors will increasingly return to buying normal Ether (ETH) - which will push up the price of ETH.

There’s still some way to go.

But with the Bitcoin ETF just around the corner, I expect that discount to close very soon, because…

2/ After a Bitcoin ETF, an Ether ETF will be next 🏦

Blackrock and Fidelity have both already filed for an Ether ETF.

Just like the Bitcoin ETF, the Ether ETF is a true gamechanger.

Once institutions realize they can buy a crypto-bond that:

• yields 4-5% annually

• and increases in value at the rate of 150-200% per year 

• directly through an ETF…

… then Ether will become an increasingly attractive asset.

But that’s not all, because…

3/ Ethereum will undergo its next major upgrade in the first half of 2024 📈

The upgrade, Cancun, will make Ethereum faster and cheaper through Layer 2s.

Upgrades like this one are typically accompanied by a rally in the price of Ether.

Investors are likely to buy ETH in anticipation of this upgrade too.

4/ Re-staking could make ETH one of the best assets in the space 🔥

Re-staking is a simple concept: you stake your ETH, and automatically re-stake your yield rewards for even more yield.

It’s like an automatic compounding machine.

Thanks to new protocols - like EigenLayer - this could soon become the standard.

With:

• native ETH staking yields

• re-staking rewards

• token emissions from the restaking protocols

… ETH yields could potentially be boosted to 20-25% annually.

This week, Arthur Hayes - the King of crypto trading - announced he’d staked 1,000 ETH (∼$2M) with re-staking protocol EtherFi.

I expect he’ll be one of many to join the craze.

Most people are sleeping on Ether because it’s underperformed Bitcoin this year. I expect that could change in 2024.

If it does, it makes sense to own some ETH.

1/ Donald Trump has a new NFT collection

2/ Blackrock’s Bitcoin ETF invites Wall Street banks

3/ Speculators are panic-selling bitcoin (Editor’s note: a lesson in what not to do…)