September 1st, 2023 - This Week in Alternative Investments

Author

Adam Katz
September 01, 2023

The first Bitcoin ETF could be on its way.

Headlines

Bite sized market updates

The first Bitcoin exchange-traded fund could be on its way. A federal court sided with Grayscale in its lawsuit against the SEC, which had denied its initial application.

The office vacancy rate reached a record high. However, other sectors in commercial real estate are showing promising signs in the post-pandemic era.

MoonPay is launching a venture arm to invest in Web3. The crypto payment infrastructure company has already invested in 25 companies.

A painting bought for $4 could sell for $250,000. The painting by N.C. Wyeth dates to 1939 and was found in a New Hampshire thrift store.

Until now, investing in top private market companies like Stripe, OpenAI, and Neuralink has been a luxury exclusive to the elite. High minimums, high fees and a lack of information have prevented everyday investors from accessing these opportunities.

Enter Sandhill Markets: we’re building a “Robinhood for Private Markets”. With low minimums and 0% transaction fees, we are democratizing access to these top companies. Review prices and listings for free.

Smart Humans Podcast

Smart Humans explores the world of alternative investments. From Venture to Collectibles, NFTs to Real Estate, Art to Debt and beyond - we discuss a new world of investment opportunities and the catalysts that impact their demand.

In this episode, Slava Rubin talks with Fanatics Collectibles’ co-founder Josh Luber about investing into sports and culture

Market Updates

The D.C. Circuit Court of Appeals granted Grayscale a victory in their lawsuit against the SEC. Grayscale had applied to convert their Bitcoin trust into an exchange-traded fund (ETF) but the SEC denied the application. With this victory in court, it now seems likely that they will be able to launch the first ever Bitcoin ETF, which will allow people to directly invest in the cryptocurrency without having to buy the coins themselves. The decision will have far-reaching consequences, as it now becomes likely that major asset managers like Fidelity and BlackRock will also launch their own ETFs. The price of Bitcoin rose around 8% in the day following the decision, though it has fallen most of the way back as of this writing.

Vacancy rates in commercial real estate are still increasing. This according to a report from the National Association of Realtors, which showed a record high vacancy rate in the office sector, and slight increases in the multi-family and industrial sectors, while retail remained steady. However, other metrics, such as rent growth and absorption rate, were promising in every sector except for the office sector, particularly in retail and hospitality.

Web3 infrastructure giant Moonpay is expanding into venture. They are focusing on early-stage web3, gaming and fintech companies, targeting seed and Series A rounds. With investments ranging from $100,000 to $1 million each, Moonpay has already invested into 25 companies. The vast majority of their investments will be linked to a commercial relationship.

A $4 thrift-store find is expected to sell for six figures at auction. A 1939 painting by N.C. Wyeth (the father of Andrew Wyeth) was found in New Hampshire in 2017, and after authentication, is being sold by Bonham’s this month. The pre-sale estimate is $150,000-$250,000 - a pretty good return on investment.