Market Updates

A CryptoPunk NFT sold for more than $16 million. Punk #3100 is a rare “alien” punk - one of only nine of its kind - and its sale represents the 2nd-highest ever for the prominent NFT collection. Punk #3100 last sold for $7.58 million in 2021 after originally selling for just $2,127 in 2017. While some are heralding the sale as a return to a bull market for NFTs, it is important to note that this NFT is among the most sought after within arguably the most prominent collection, so it may very well be an exception. While the floor price for CryptoPunks rose immediately after the sale, it has fallen to a nearly 3-month low (denominated in Ethereum) since. Other notable NFTs collections, such as the Bored Ape Yacht Club, have also seen their floor prices drop, as the crypto surge has not translated to NFTs as of yet.

The first major art auctions of the year took place in London. First, Sotheby’s saw $126 million in sales for their modern and contemporary art offering, just over the low estimate and a sharp decline over the $208 million last year’s auction brought. Next, Phillips’ 20th century and contemporary art auction brought in just £10.9 million, below their estimates, and about half of last year’s £20.3 million haul. Finally, in more positive news, Christie’s two modern sales saw total sales of $250 million, a 17% improvement from last year, led by a $43.2 million sale of a Magritte painting. Overall, it was not an encouraging start to the year as the upper tier of the market continues to soften.

Bitcoin surpassed $70,000, hitting a new all-time high. Every week has been bringing a new milestone for the cryptocurrency, as it just passed $60,000 last week after hitting $50,000 two weeks before that. It has now tripled in price over the past twelve months, and mainstream interest has been growing along with it. Spot trading volume reached a yearly high and has grown by 680% since the start of 2024, and daily inflows for Bitcoin ETFs have hit all-time highs. The price remains volatile, so it is best to invest only if you have long-term conviction and can weather the wild swings.

Morgan Stanley’s wealth management arm is now offering clients the ability to buy pre-IPO shares. With many prominent startups, like SpaceX, OpenAI and Stripe, staying private for longer, and the amount raised in IPOs falling by nearly 90 the past two years, demand has risen for access to pre-IPO opportunities. According to Morgan Stanley, “[t]here’s been increasing pressure over the past number of years to get into these companies while the value creation is occurring.” This is representative of the trend towards private market investing, as demand rises for investment options not available in traditional markets.