Dear Readers,
By the time you read this, history will have been made.
In fact, you “should” be able to invest directly into it by now.
I’m talking, of course, of the announcement that industry heavyweights BlackRock Inc., Invesco Ltd., and Fidelity Investments can now publicly list ETF’s that invest directly into Bitcoin.
So, should you get involved?
Is this your answer for simple and effective exposure to the crypto markets? Can this announcement tell us anything about the likely peak of the current 18.6-year Real Estate Cycle?
This is where, if you’re blinded by the headlines, you are in danger of missing the bigger picture.
Because this announcement is yet another piece moving across a grand chessboard that will result in a cataclysmic end to this real estate game.
If you want to get involved in this game, it’s imperative you understand what each piece on the board does and doesn’t do.
So, let’s look now at just what exactly this Bitcoin ETF ‘piece’ is.
And how it will dramatically change the board in the years to come.
After an amazing bull market based upon the incredible hype and promise of those same “disruptive innovation” companies the ETF witness a 11 month return of 390% for investors.
In February 2021, the reality of just how far away the companies this ETF invested in were from being profitable sank in. Early investors gave back all those same gains and more.
Does this Ark ETF hold a huge exposure to crypto related companies? You bet!
Now, I can’t blame any CEO for talking up their primary business; all CEO’s must be natural salespersons. But when you look objectively at the returns for long term investors in her fund, you start to get the impression she is trying hard to talk the price of this ETF up some?
One could even say ‘manipulate’ it higher? More on that in a moment.
And so, as usual, the advice always remains the same – buyer beware.
Just because Catherine Wood decides that this announcement is good for her, doesn’t mean it’s also good for you.
You need to understand this distinction well. History tells us the noise and emotion surrounding this new form of investing is only going to get louder and more highly charged.
And here is why.
A shock to the crypto verse.
So, we know precisely what someone who is deeply involved in the crypto space, and is a strong proponent for this Bitcoin ETF, thinks about the views of the SEC.
And today we can see the wall-to-wall coverage via the financial news and social media stoking the fires of what these new crypto related ETF’s mean for the average investor.
The analogue I made was one of a giant ‘piece’, Bitcoin ETF, being moved further up the chessboard. And if that’s all you focused on, you just missed something big!
Here’s why.
In the most ironic and predictable manner possible, just days before the SEC released their announcement, we had a wonderful demonstration of the most blatant manipulation you can imagine.
This is a most incredible chart really. It shows a two-day period between January 9th to 10th 2024.
Early on January 9th, just hours before the SEC were due to make its announcement, a fake tweet was released via a hack of the SEC’s own Twitter (now X) account. The tweet said that the Bitcoin ETF had been approved.
It was subsequently deleted a few minutes later and followed by an official tweet by SEC Chair Gary Gensler to state no decision had yet been made.
Look at the right-hand column, showing Bitcoins price. Can you see the violent price movement between when the two tweets were sent?
All in just a few hours! How on earth can the US SEC possibly monitor in real time what’s going on in this market – the same market these new ETFs are tied to?
It’s pure manipulation of the price! This is exactly what the SEC was afraid of, and it came via a fraudulent tweet from their own X account.
You cannot make this up, priceless in fact!
Can you imagine the global uproar if this occurred in the gold, silver, or any other commodity futures market?
Regulators do not enjoy being embarrassed like this; not one bit. Particularly when they have been publicly quoted about their deep concerns.
Heres another quote from the above Bloomberg article. It’s vital you get the context here, as it sums up why the SEC was previously so disinterested in giving these new ETF’s the green light.
At the crux of the SEC’s previous rulings against a spot ETF was the argument that no regulated exchange was able to adequately monitor Bitcoin trading in a way that would reliably detect fraud and manipulation.
Incredible really. A self-fulfilling prophecy. One must ask the obvious question.
Why did they change their mind?
Why did they do it now?
The undisputed link between Bitcoin and land exposed.
The answer lies in a single word. Often misquoted and certainly not understood whatsoever by mainstream economists.
That word is – rent.
Economic rent to be precise. It describes the unearned gain those in possession of something can grab for themselves above the cost of production.
That is all Bitcoin is today, pure speculative rent chasing. The dream of becoming an alternate currency has died. Instead, the vast sums of profit the market makers have seen can be made promoting this via an ETF has basically doomed it.
And it is here we find the link between it and land. Should history repeat, the current 18.6-year Real Estate Cycle has now begun its most speculative phase right up to its expected peak later this decade.
For over 200 years, there have been two things that drive this phase. The real estate cycle is governed by the availability of money supply, which today is credit creation. The more credit available, the higher speculative assets like real estate and cryptos can get.
Which leads to the second point. Speculative lending and investing in real estate and cryptos, at this same late stage of the cycle, means the timing of both are now closely synced.
The bottom line is this; it is supposed to be like this.
Every previous cycle has seen the development of a brand-new way to maximize the returns you can get by chasing the rent.
Products like Real Estate Investment Trusts (REIT’S), derivative trading brought on by the widespread adoption of personal computing. And now, for the first time, crypto assets.
It is time, right now, for unrestricted credit creation to be leveraged into the most speculative investment vehicles possible.
Are you a long-term crypto investor? Or are you brand new to this space, and that’s why a simple ETF would appeal to you for exposure?
Would you like to know the best time to buy, and particularly, when the right time to get out is?
Knowledge of the 18.6-year Real Estate Cycle is now your key to gaining such timing.
The best place to get such knowledge? Membership to the Boom Bust Bulletin (BBB) is where you start.
Each month I will show you why the same historic drivers that underpin the speculative mania that defines the last few years of the real estate cycle are the same ones driving cryptos.
Understand this dynamic, and you can learn to time the market. And teach you how to develop a market edge like no other.
The edge only those who truly study the land market could ever possess.
All that for $47USD a year; that’s less than a takeaway coffee a month!
Theres a very good reason why this announcement happened now.
Globally, the credit screws are slowly being unleashed. I detailed this to you last week.
What’s needed today is a set-up that sees that same credit be directed towards the most hyped and cutting-edge sectors of the so-called “disruptive innovation” out there.
Are these Bitcoin ETF’s one such asset? Catherine Wood clearly thinks so.
History is stark about the eventual outcome of this if anyone cared to read about it.
It must be a good feeling to know you have the guidance of over 200 years of history on your side.
Make it you own.
Sign up now.
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