| | | Good afternoon. Tonight, as the sun sets on Wall Street, the moon rises for bitcoin. After market close, the bitcoin ETF is widely-expected to be officially approved as today’s the deadline for the SEC to make a decision.
What’s going to happen? Nobody really knows. | But we’ll leave you this: When a ton of buying meets a fixed supply, the price is only going one direction – up. It may not happen right away, it may not happen in 1-2 months, but we’re confident the next 6-18 months are going to be insane. | Today’s Big Stories: | 🤡 SEC Twitter hacked
🤔 Choosing sides: ETF vs. BTC | Today's newsletter is 744 words, a 2.5-minute read. |
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Here’s the timeline of events: |
Yesterday afternoon, the @SECGov twitter account gets hacked, falsely claiming that bitcoin ETFs have been approved Seconds later, bitcoin surges, wiping out people who have used options to short bitcoin A whole 15 minutes later, Gary Gensler and the SEC announced the hack, reversing the claim Seconds later, bitcoin conversely falls, also wiping out people who have used options to go long on bitcoin
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End result? A total clown show of SEC cybersecurity that imposed billions of pointless losses on investors. 🤡 |
Following the news, Twitter’s safety team did a preliminary investigation into the compromised account, stating: |
The compromise was not due to any breach of X’s systems but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party. | | | | X Safety Team |
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Turns out that the SEC’s account did not have 2FA enabled at the time of the hack, a security measure that Sir Gensler had previously recommended as protection against identity theft and fraud. |
Ohhh, only in crypto… they say. |
So far, the motives behind the attack are unknown. Regardless, the level of irony in all of it is nothing short of remarkable. |
We may be wrong, but we like to think of the hack as more of a symbolic act. Someone hacks the SEC… on the Eve of Wall Street’s grand welcoming… innocently hash-tagging bitcoin along the way… and causing a quick stir in markets. It doesn’t get any better than that. |
Perhaps it’s a reminder that the cyberpunks, who came long before bitcoin, still have a seat at the table. |
Will you be buying the bitcoin ETF? |
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SPONSOR | The Institutions Are Coming | ETF issuers have already started running marketing campaigns. The Super Bowl ads are just around the corner. And we all know what happens when Wall Street calls all their clients and recommends a 1% allocation to bitcoin... | You see, we believe Wall Street is engaged in a takeover of crypto. And when their takeover is complete — starting with a spot bitcoin ETF approval — I expect the price of bitcoin and most cryptos to spike immediately. | And they may never come back down. | Bear in mind, however, the clock is ticking. This approval could come at any moment. And you don't want to be caught flat-footed. | Click here to get the full story… plus the ONLY altcoin I think you should own. |
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Bitcoin or ETF: Which Should You Buy? |
With the approval of a spot Bitcoin ETF, you may be tempted to rush out and add a bunch of your favorite to your trading account. |
But before you do, it’s worth taking a second to decide what’s best for you and your money. |
Now, we aren’t talking about whether or not you should add crypto your portfolio… |
No, the fact that you are adding any amount of BTC to your portfolio is a laudable and smart move. That’s because adding even as small as a 1% allocation to Bitcoin has historically improved returns of a 60/40 portfolio. |
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Instead, we are talking about the choice of vehicle in which you decide to buy BTC. We are discussing fees. |
Right now there is a fee war going on amongst the 12 potential bitcoin ETF providers with each attempting to undercut the next to get your business. |
As of publishing, the fees range from .20% – .90%, with several offering fee-free investing for the first 6-months. |
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But the question isn’t really which ETF you should choose, but rather whether it makes sense to buy BTC using an ETF at all? Should you instead just buy good ‘ol BTC using an exchange? |
Let’s look at the facts: |
On an exchange, you pay a fee when you buy and sell. |
With an ETF, on the other hand, you pay a percentage of your total investment value every single year. |
Without getting into the dirty details, the answer of which to choose (direct BTC vs. ETF) really comes down to what kind of investor you are: long-term or short term. |
If you are a short term trader, it probably doesn’t matter whether you choose ETF or exchange. In fact, for the next 6-months you have fee free trading capabilities with multiple ETFs. |
For the longer-term investor (5+ years) though, investing through an exchange is probably your better option. This of course comes with the caveat that you are using an advanced trading platform with lower fees such as Kraken Pro or Coinbase Advanced. |
Looking beyond fees though, there are some other advantages to buying bitcoin directly on an exchange like Coinbase. |
Control: You have full control of the keys to your BTC. Liquidity: ETFs only trade when the market is open. BTC trades 24/7. Usability: After buying an ETF you only have two options: hold or sell. Holding your own BTC though gives you the capability to do much more if you desire: swap, buy physical goods, etc.
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At the end of the day, we suggest buying BTC in any way you can get your hands on it. But there is no rush. Take your time to find the most cost-effective way to do so and you may just save yourself tens of thousands of dollars over time. |
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 | Charlie Bilello @charliebilello |  |
| US National Debt has crossed above $34 trillion for the first time, increasing by $2.5 trillion since the "debt ceiling" was suspended just seven months ago. To say the US government is spending money like a “drunken sailor” would be an insult to drunken sailors who at least a)… twitter.com/i/web/status/1… |  | | | Jan 3, 2024 | | |  | | | 810 Likes 251 Retweets 53 Replies |
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