Two Important News Items

We have two news items for today worth looking into to keep abreast of the markets.

Spot Bitcoin ETF Approved

The Securities and Exchange Commission (SEC) has repeatedly denied applications for Bitcoin ETFs for the last ten years. In a widely considered milestone, the commission approved 11 applications for Spot Bitcoin ETFs yesterday, January 10. 2024. They started trading today, January 11, 2024, even as Bitcoin rose 6% to $48,970.

There are over 52 million Americans who own cryptocurrency today. It will continue to grow as the approval will attract retail and institutional investors, especially retirement funds. The advised wealth management industry, estimated at $30 trillion, which was previously unable to invest in Bitcoin, will now be able to have direct exposure to Bitcoin.

One delicate and meticulous aspect of directly owning Bitcoin is the issue of safekeeping and custody. The FTX collapse underscores that it is unsafe for investors to maintain their assets at a cryptocurrency exchange — investors should keep their cryptocurrency in a hardware wallet. A Bitcoin ETF will make it cheaper for investors to buy and easy to own and safeguard their Bitcoin investment.

If you are an investor and would like to get exposure to cryptocurrency, it is now easier than ever to invest. Below are the 11 new ETF funds and associated ticker symbols.

CPI Number Released Today

The highly anticipated December Consumer Price Index (CPI) was released today. It rose slightly at 0.3% month-over-month compared to November’s 0.2% month-over-month. Prices rose 3.4% year-over-year vs. last November’s 3.1% year-over-year. The market was expecting 0.2% month-over-month and 3.2% year-over-year.

The CPI number was especially critical to those expecting the Federal Reserve to start cutting interest rates as early as March. The market is now pricing a 69% chance of Fed cuts in March.