Hey Snackers,
Sam Altman is more than just the CEO of OpenAI. He’s also a man who wants to scan your eyeballs in exchange for crypto... and then improve your dating life! At long last, Altman’s blockchain project, World, is coming to America. If you live in one of these six cities, next week you can peer into the Orb and receive 16 worldcoin. But that’s not all! World is partnering with dating site Match to help ensure that cutie you’re eyeing is who and what they say they are.
US stocks surged out of the gate on Thursday thanks to stellar earnings reports from megacap giants after the close the day before. Stocks were poised for another day of massive gains, but gave back about half their advance for seemingly no reason late in the session. The S&P 500 and Russell 2000 gained 0.6%, while the Nasdaq 100 outperformed with a rise of 1.1%.
That marks eight straight positive days for the benchmark US stock index, tying a streak last seen in November 2023.
Mine your brain for the answers to this week’s Snacks Seven Quiz. Here’s your first Q:
How much has Cathie Wood’s Ark Invest raised its 2030 bitcoin price target to?
Check your answer.
Ethereum’s about to get a “unique upgrade,” but will that boost its price?
So much of the news focuses on bitcoin, but the second-largest blockchain, ethereum, with a market cap of $223 billion, is about to get a major upgrade next week. On May 7, the blockchain will undergo a mainnet upgrade named “Pectra,” its largest protocol upgrade in terms of the number of Ethereum Improvement Proposals, with 11 included. In a nutshell, the changes aim to make the network more user-friendly, scalable, and efficient.
But one of the reasons we hear more about bitcoin than ethereum is because of the price action. Ethereum is trading hands at the $1,800 level, an over 45% drawdown since the start of the year and a roughly 54% decrease since the network’s previous upgrade last year. Meanwhile, bitcoin’s price just hit the $97,000 mark, exceeding its price point at the start of the year.
Additionally, spot bitcoin ETFs have seen a much faster pace of adoption than spot ethereum ETFs. Since spot ethereum ETFs started trading last July, they’ve attracted almost $2.5 billion in cumulative net inflows. In contrast, spot bitcoin ETFs drew roughly $21 billion in their first nine months. And more recently, bitcoin ETFs have seen insane inflows, with nearly $1 billion going to BlackRock’s spot bitcoin ETF in just one day earlier this week.
But back to ethereum’s upgrade: one major benefit is for the validators of the blockchain. Right now, each validator can stake a maximum of 32 ETH, worth nearly $59,000. That limit is going up more than 60x to 2,048 ETH, or roughly $3.8 million. The main reason behind the change is for security, but there’s no doubting the appeal of compound interest and rewards on millions rather than thousands.
The Takeaway
Is this the moment for ethereum to make a rapid rise? Julien Auchecorne, head of crypto trading firm Auros Ventures, told Sherwood News, “While we don’t expect immediate price impact… Pectra could prove to be a catalyst that we will look back on as a turning point, particularly if it rekindles conviction around ethereum’s long-term road map.”
No crypto wallet? No problem.
One programmer famously lost access to 7,000 Bitcoin — worth around $600 million — because he couldn't remember his digital wallet's password. But thankfully, Bitcoin access no longer requires a digital wallet… or even a crypto account.
The Grayscale Bitcoin Mini Trust ETF (ticker: BTC) provides the lowest-cost1 way to get Bitcoin exposure in your existing brokerage account (though brokerage fees may still apply).
As a crypto-focused asset manager, Grayscale offers exposure to 30+ different cryptocurrencies via their investment funds. Over a decade of experience managing crypto products makes Grayscale sector experts — and you can start investing with a single share.
Search BTC on your preferred platform to learn more. Think crypto, invest Grayscale.2
Grayscale Bitcoin Mini Trust ETF ("BTC"), an exchange traded product, is not registered under the Investment Company Act of 1940 (or the ’40 Act) and therefore is not subject to the same regulations and protections as 1940 Act registered ETFs and mutual funds.
The ETF race is on between solana, XRP, and… litecoin?
Everyone wants to be the first to launch the next crypto ETF, and there are a mind-blowing 72 filings so far, including ones for dogecoin and even $TRUMP. However, not all of these have an equal chance of approval.
Bloomberg Intelligence’s James Seyffart estimates the likelihood of a solana or litecoin ETF approval at 90%.
Seyffart puts the odds for an XRP ETF at 85%, though a report from Kaiko Research put XRP at the front of the crypto ETF race.
Finally, both dogecoin and hedera ETFs have an 80% chance of being approved, according to Seyffart.
And here’s what he thinks the odds are for avalanche, cardano, and polkadot. $TRUMP, alas, doesn’t make the list at all.
The Takeaway
While it seems a little out of left field, people have actually predicted for months that under-the-radar litecoin could be approved first. For one thing, litecoin has already been classified as a commodity by the CFTC, so the SEC doesn’t have to worry about whether it’s an unregistered security. The SEC also acknowledged two litecoin ETFs earlier than any solana entry, giving them a slight calendar edge regarding a final deadline for a decision.
In any case, experts say most applications, from XRP to dogecoin, will likely find their way to approval thanks to the crypto-friendly new administration, but strongly doubt their influence — or inflows — will be anything near that of bitcoin.
Twenty One says it can be “superior” bitcoin vehicle than Strategy
Many companies are emulating Michael Saylor’s bitcoin accumulation mission at Strategy. One is taking a direct shot at it. Twenty One, whose name is a nod to bitcoin’s finite supply of 21 million tokens, plans to launch with more than 42,000 bitcoin.
Looking for crypto exposure? Here’s a little Bit…
Get crypto exposure from the crypto fund specialists: Grayscale.
Grayscale Bitcoin Mini Trust ETF (ticker: BTC) is the lowest-cost1 way to gain exposure to Bitcoin without switching platforms or opening an account on a crypto exchange (though brokerage fees may still apply).
Simply search for ‘BTC’ wherever you trade.2
Grayscale Bitcoin Mini Trust ETF ("BTC"), an exchange traded product, is not registered under the Investment Company Act of 1940 (or the ’40 Act) and therefore is not subject to the same regulations and protections as 1940 Act registered ETFs and mutual funds.
Yesterday’s Earnings Recap
Bitcoin buying machine Strategy reported earnings for the first time since its rebranding, and missed both revenue and earnings-per-share estimates
Amazon beat earnings expectations for Q1, but the tech giant forecast operating profit for the current quarter that undershot Wall Street’s expectations
Apple beat analysts’ revenue and EPS predictions, but investors were concerned that its blowout iPhone sales represented a one-off pulling forward of demand from customers worried that tariffs will drive up its costs
Reddit crushed its Q1 earnings estimates, riding a wave of user growth boosted by changes to Google Search and its own internal site tweaks
Crypto Catch-Up
Circle is poised to sit atop the iron throne and rule over trillions of dollars in stablecoins’ “Game of Thrones,” Axios reports
The ridiculous tale of a group that stole $250 million in crypto and got caught one month later
The gap between bitcoin ETF inflows and gold ETF outflows is the largest it’s been since November: $4 billion
Tesla’s Q1 adjusted earnings figure left out a $97 million crypto loss
Crypto-curious? Grayscale offers more than 30 different crypto investment funds accessible from your existing brokerage account. Search Grayscale (or BTC for the Bitcoin Mini) in your investment account today. Investing involves risk and possible loss of principal.2
Snack Fact of the Day
Crypto venture capital funds are on track to raise $4 billion this year.
Friday
April jobs report
Earnings expected from ExxonMobil, Chevron, Wendy’s, Cigna, Monster, and Fubo
Advertiser’s Disclosure
¹ BTC is low cost based on gross expense ratio at 0.15%. Brokerage fees and other expenses may still apply.
² Please read the BTC prospectus carefully before investing in the Fund. Foreside Fund Services, LLC is the Marketing Agent for the Fund.
Investing involves significant risk, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Extreme volatility, regulatory changes, and exposure to digital asset exchanges may impact the value of Bitcoin and, consequently, the value of the Trust. Digital assets are not suitable for an investor that cannot afford the loss of the entire investment. There is no guarantee that a market for the shares will be available, which will adversely impact the liquidity of the Trust.
The value of the Trust relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors. There is no certainty that an active trading market for shares will develop or be maintained which will adversely affect the liquidity of shares of the Trust.