🌐 Ethereum Up +28% From ETF Hype

& Nvidia announced a 10-for-1 stock split...

Author

Austin & Robert from Rich Habits
May 23, 2024

Together with Acorns

Good morning,

A quick breakdown — in case you just don’t have the time.

  1. ⭐ Ethereum is getting closer to ETF approval.

  2. ⭐ BlackRock Exec Jay Jacobs joins us for an exclusive interview.

  3. ⭐ Some pandemic winners have been completely crushed.

  4. ⭐ Nvidia announces a 10-for-1 stock split.

  5. ⭐ Jamie Dimon could be retiring from JPMorgan.

  6. ⭐ Acorns is offering you a $35 sign-up bonus.

Market Overview

As of market close 05/22/24

Chart of the Week

The most recent episode of Rich Habits features an interview with a BlackRock exec — which goes in-depth about their Bitcoin ETF. Now the inevitable seems to be happening, as the Ethereum ETF floodgates are getting closer to being opened — according to this senior Bloomberg ETF analyst.

Below is a list of all spot Ethereum ETF entrants looking to go live ASAP.

As we always preach — don’t over-allocate your net worth to cryptocurrency as it’s an incredibly volatile asset. We’re happy holders of Bitcoin, Ethereum, Chainlink, and other cryptos that we believe have the potential to meaningfully improve financial systems and the overall movement of money.

We may need to get another guest on the show related to ETH!

“If the SEC does approve the $ETH ETF it will be one of the biggest regulatory 180s in recent SEC history and proof that the crypto crowd is a legitimate voting block, securities lawyers tell me.

All the guidance coming from Gary Gensler was that he was even going to declare $ETH a security, which would have made it a complete no go. But that’s not what we’re hearing now after people like John Deaton made their voices heard and Dem lawyers heard them and got glittery about losing the Senate. Again don’t believe anything until you see the press release but if this is approved, it’s a big f***ing deal.”

As we turn the page to the summer months, we’ve partnered up with Acorns!

If you set up your account using the link below + pay your first subscription fee (which start at $3 / month) — you’ll get a $35 bonus! More importantly, this $35 bonus can be used to kick-off building your base — allowing you to become financially free over time.

With over 13 million customers and $20B invested, we’re thrilled to partner with Acorns to present this special offer to you all.

In Case You Missed It…

In this week’s episode of the Rich Habits podcast (linked here) — we asked Jay Jacobs, BlackRock’s U.S. Head of Thematic & Active ETFs, about the following:

  1. Demand — Where is the demand coming from for Bitcoin ETFs?

  2. BTC’s Level-Up — What’s the difference between a futures Bitcoin ETF and a spot Bitcoin ETF like BlackRock’s new IBIT ETF?

  3. Coinbase Partnership — What’s a custodian relationship like and why is BlackRock partnered with Coinbase for this?

  4. Beyond Bitcoin — As Bitcoin’s adoption continues to grow over time, what does the next generation of digital assets look like?

During our Q&A episode that was posted this morning, we answered questions from Cathy, Greg, Will, Nick, Aishwarya, Jesse, and Jake! All of these questions were asked via Instagram DMs — if you’re not yet following us, be sure to follow here! 

Reply to this email with your questions so that we can answer them in the next week’s edition.

We’ve got another free webinar coming your way! This time it’s with the Head of Product at Public. We’ll be discussing options strategies — including long calls & puts, call & put debit spreads, and everything in between!

If that sounded like a foreign language to you — that means you need to join us.

Robert’s Callout

I love this visualization of the “pandemic darlings” — all of which were insanely overvalued in relation to the profits they were generating for shareholders. While these charts are somewhat humorous, it’s sad that so many people invested at absurd valuations and got left holding the bag.

Remember to always do your due diligence and never merely invest in something based on the hype! Ask yourself questions like:

  • What is the P/E ratio of this company?

  • Is this company free cash flow positive?

  • What is their operating income margin?

  • How do the above metrics compare to their Peers?

“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”

— Warren Buffett

Austin’s Callout

Nvidia (NVDA) did it again — they reported revenue growth of +262% year-over-year. This insane annual growth was catalyzed by their data center-specific revenue growing by +427% year-over-year.

Additionally, the company announced a 10-for-1 stock split — accompanied by a +150% raise to their annual dividend. The world is being rebuilt from scratch with AI in mind — and it seems like Nvidia is the “Energizer Bunny” keeping it all rolling.

Nvidia is now 5X larger than Walmart and 9X larger than Netflix by market capitalization. If you bought Nvidia’s IPO with $10K in 1999, you’d have nearly $25 million today — a +250,000% return.

“We think Nvidia can sustain at least an 80% market share in the AI accelerator market. We predict this market to climb to $100B in 2024, double to $200B by 2027, and then $300B+ by 2030.”

— Mr. Vivek Arya, Managing Director at Bank of America

The Rich Habits Radar

  • 👉 Boeing is dealing w/ the death of a Singapore Airlines passenger.

  • 👉 OpenAI got blasted by Scarlett Johansson for using her voice.

  • 👉 Target reported its fourth straight quarter of declining sales.

  • 👉 Disney cost-cutting continues with Pixar cutting 14% of workforce.

  • 👉 Airbnb hosts’ earnings have declined 22 out of the last 24 months.

  • 👉 JPMorgan Chase CEO Jamie Dimon could be close to retirement.

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Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.