As their ETF approval deadline approaches,
Grayscale hires a former Obama administration lawyer
to battle it out with the SEC.
The S&P 500's information technology sector saw a drop of 19% this year,
proving you can still make a million dollars in tech stocks
if you have $2 million to invest.
And consumers are using credit card umbrellas in a hurricane of inflation and soaring gas prices.
My name is Ben.
This is your nightly crypto news wrap-up.
Let's get it!
Grayscale hired Donald B. Verrilli, Jr.
in the company's pursuit to convert its Grayscale Bitcoin Trust
into a spot exchange-traded fund, or ETF.
You could say Verrilli has got some experience,
serving as the Obama administration's Solicitor General
and representing the government in US Supreme Court cases.
The deadline for the SEC to make a decision is July 6.
And after 9 long months since its initial application,
Grayscale is ready for the change.
Spokesperson for the company says they are operationally ready to convert to an ETF
and have explored other options in case they are denied.
In May, Grayscale had what it calls a productive meeting with the SEC,
where the firm made their case for ETF approval.
Can Grayscale build a case strong enough for the first approved spot ETF in the US?
Well, with the slew of spot ETF denials that have come before it,
GBT will need to train like Rocky Balboa if they want to come out on top.
Speaking of coming out on top,
the BitSquad likes to buy low and sell high,
so let's flip this over to Frankie Candles and find out what the charts are saying.
Thanks, Ben!
Alright, guys. Let's jump in and do a little market watch here.
We've got Bitcoin coming in at $30,274.
Down about 3% on the day
Ethereum coming in at $1,794
Down about 1.5% on the day
Let's check our top movers.
We got THETA up 9% for the day.
Algorand up 5% for the day
Helium up 5% for the day
Cardano up 4%
FTT up 4%
And an honorable mention, Chainlink up about 2% on the day
Guys, Bitcoin's price action has been very, very scammy lately,
so be really careful if you're out there trading.
We do have money flow on the higher hourly timeframes
starting to come up towards that zero line
looking for a cross over into the green,
which means that we could be finally getting this big relief bounce.
It feels like we've been saying that for a month.
So take it with a grain of salt,
but we've got to come up at some point.
We can't go sideways forever.
If you guys want to follow me,
it's Frankie Candles on YouTube or @Frankie_Candles on all socials.
Back to the news.
Thank you, Frank! As always.
The S&P 500 Growth Index is being beat out by the value index,
with the tech sector dropping 19% since beginning of 2022
and the broader S&P 500 down 13%.
It's the largest gap since 2004.
In April, investors pulled a record amount of capital from tech-focused mutual funds and ETFs,
totaling $7.6 billion in capitulation.
Tech stocks used to be the biggest movers in the stock market,
pushing major indexes to record highs.
S&P 500 Growth Index stocks like Tesla, Nvidia and Meta platforms
are now being outperformed by its value index by 17 percentage points.
As Treasury yields increased to their highest level since 2018,
investors are bracing for more pain in the tech sector
as the central bank continues to raise rates.
Higher Treasury yields makes the future cash flow of these companies less attractive,
and tech is currently the most shorted sector.
However, according to S3 Partners,
short interest in tech is expected to drop in Q2.
Whether it's too early to buy the dip on tech or the bottom is in,
well, that remains to be seen.
But one thing I'm sure of is that smashing up the like button
is the best thing you can do to help the channel
and get more of this kind of content out to more people.
Let's help crypto go mainstream together.
Consumer credit is on the rise,
increasing more in April than expected.
To weather the storm of surging gas prices and inflation in the price of consumer goods,
Americans are using their trusty friendly credit cards.
Total consumer credit which includes car loans and government-issued student debt
increased by $38 billion!
Well above the expected $35 billion.
And in March, total consumer credit was a whopping $52 billion.
Revolving credit, which mostly tracks credit cards, rose by $17 billion in April,
preceded by $25 billion in March.
Consumers can't stand the heat,
so a lot of them,
well, they're starting to get out of the kitchen
using credit cards as a crutch.
Although accruing debt can take some pressure off in the short term,
rising borrowing costs could cause issues for household financials down the road.
With the economic parity of money printing and government handouts behind us,
the economy has been whittled down to what's practical.
Tech stocks with high hopes and low cash got hammered,
and consumers are using debt to keep up with the rising costs of living their daily lives.
We all want some relief.
Tides to turn for the price of gas and consumer goods.
Rate hikes that aren't a shock to the system.
Maybe an ETF approval.
We've had some pretty clear indications from the Fed about what's next.
And the outlook for interest rate hikes and the price of gas and other commodities,
well, let's just say it looks grim.
July 6 approval for Grayscale's exchange-traded fund conversion
could be the dash of hopium the crypto community needs to get through.
But I wouldn't bet on it.
That's all I got.
Be blessed.
BitBoy out.