👀 Time for ether ETFs

Ether could be the next crypto to get the mainstream treatment | A major real estate trust limited investor withdrawals | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for May 25th in 3:12 minutes.   🎟 We can't get you into the Oscars to meet Leo, or Wimbledon to watch Novak. But if you want to share a stage with the all-stars of finance, like Ray Dalio and Jamie Dimon, we've got you. [Find out more about our Modern Investor Summit slots today]( Today's big stories - The SEC’s latest ruling could give bitcoin some company, in the form of ether spot ETFs - What’s happened to Japan’s stocks, and what could happen next – [Read Now]( - One of the world’s biggest real estate trusts limited investor withdrawals, as higher interest rates took their toll on property prices In The Ether [In The Ether] What’s going on here? The US Securities and Exchange Commission (SEC) [approved]( a rule change that could bring about ether spot exchange-traded funds (ETFs), a similar move to the one that sparked bitcoin’s rally. What does this mean? Ether spot ETFs would let investors buy into the world’s second-biggest cryptocurrency without directly owning the coins or dealing with the complex storage of them. Now, the SEC has approved applications from various exchanges to list ether ETFs by BlackRock, Fidelity, Invesco, and Ark Invest. But the funds still need to go through another round of approval – and even if they pass that, there’s no word on a launch date yet. Why should I care? Zooming out: Slow and steady can win the race. The SEC has been slow to approve crypto investments, wary of the industry’s compliance breaches and rampant fraud scandals. But there’s clearly a market for them. ETFs for bitcoin – the world’s biggest cryptocurrency – were only approved six months ago, and FactSet indicates that they’ve already raked in over $12 billion. Although, ether ETFs probably won’t reach the same heights. The crypto itself is much smaller than bitcoin, with the Grayscale Ethereum trust less than half the size of the bitcoin one from before the launch. Plus, the SEC hasn’t approved staking – a process that lets investors earn interest by locking up their crypto – for either coin, so ether can’t rely on an advantage there to close the gap. The bigger picture: Shoot for the moon. Mind you, even a fraction of bitcoin’s rally would be a big step up for ether – and that’s not unlikely by any means. Bitcoin spot ETFs caused a stir because, unlike bitcoin “futures” products, they actually hold bitcoin, and the same would be true for ether’s lineup. That’s probably why the mere anticipation has sent ether's price up by over 20% since Monday, meaning it’s climbed more than 60% since the start of the year. You might also like: [Ethereum 101, the first smart contract blockchain.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=In The Ether&utm_campaign=daily-global-25-05-2024&utm_source=email) Analyst Take Japan’s Unstoppable Stock Rally, Um, Stops [Japan’s Unstoppable Stock Rally, Um, Stops]( By Russell Burns, Analyst Japanese companies seemed unstoppable. Not only were they seeing robust sales and strong profits, but they were also being bolstered by a string of investor-focused government reforms. But now, firms' forecasts are looking downbeat – and that’s put a pause on the [stock market's rally](. That’s today’s Insight: [what’s happened to Japan’s stocks, and what could happen next](. [Read or listen to the Insight here]( sponsored by streetbeat An investment into a college future Over $41,000* – that’s how much you can expect to pay at a US private nonprofit college. So it’s no surprise that 77% of American families** say undergraduate tuition is too expensive for them – especially when those prices don’t look set to go anywhere. Enter, [Streetbeat’s Tuition Rewards program](, where subscribers can earn up to 25% off at over [450 prestigious private colleges and universities](, by collecting points that don’t expire. Streetbeat offers a range of investment tools that can be used from stocks to crypto and even [AI-powered investing]( – it all depends on what interests you. Sign up with the code “Finimize” and get a [seven-day free trial]( of unlimited access to AI-powered investment tools and strategies, as well as [bonuses of up to $5,000](. [Find Out More]( Streetbeat, LLC (“Streetbeat”) is an SEC-registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. *[More Than 3 in 4 Americans Believe College Is Difficult to Afford - Morning Consult]( **[What You Need to Know About College Tuition Costs - US News]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Sealed Estate [Sealed Estate] What’s going on here? One of the world’s biggest real estate trusts [put]( a hard limit on how much investors can withdraw. What does this mean? Rapidly rising interest rates have damaged real estate valuations, leaving owners struggling to sell property at decent prices. Private equity firm Starwood Capital Group has seen the effect on its $10 billion real estate income fund (SREIT). Recently, more investors have been trying to take their money and run. So Starwood has “locked the gates”: instead of allowing 2% of the fund’s assets to be sold each month, it’s reduced the limit to 0.33%. The idea is that interest rates will eventually fall, bolstering real estate prices and benefiting those who stuck around. But with inflation looking stubborn, investors may be holding their breath for some time. Why should I care? Zooming in: From red to, uh, even more red. SREIT has piled up around $15 billion of debt while buying real estate, an intimidating figure next to the $25 billion it holds in total assets. A lot of that debt would’ve been borrowed when interest rates were low and building prices were rising, making it a cheap way to invest in the business. But now that the costs of borrowing and servicing repayments are on the rise, while property prices are falling, SREIT would likely make painful losses if it sold off real estate at the market’s current prices. The bigger picture: It’s not too good to be true. Folks can now get up to 5% interest just for leaving their cash to sit in a savings account, so you can’t blame them for ditching higher risk investments. Remember, higher interest rates reduce company valuations and dent stock prices. Even private companies and assets – which had recently been enjoying a bout of popularity among institutional investors – have been affected, rarely fetching a price worth selling for. You might also like: [Why it might be time to think about real estate again.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Sealed Estate&utm_campaign=daily-global-25-05-2024&utm_source=email) 💬 Quote of the day "If the path be beautiful, let us not ask where it leads." – Anatole France (a French poet, journalist, and novelist) [Tweet this]( [Otto’s mission]( is to modernize the wealth management industry. One surefire way to make a difference is content. But after a few attempts, Otto quickly realized that it's hard to come by copywriters who can crunch numbers in their sleep and communicate like a regular human being. So the Otto team turned to our [Finimize API](, which let them integrate our world-class insights into its own user journey. Since then, Otto has seen [more engagement]( with direct emails, and it's saved the time and money it would take to do the work in-house. [Find out how Otto is using content to bring big goals a little closer.]( [Read The Case Study]( 🧐 Forget Interest Rates You’d be forgiven for thinking that the Federal Reserve’s second-most aggressive rate-hiking cycle in history would have significantly increased the cost for companies to [raise fresh cash.]( Instead, runaway share prices and falling corporate bond yields have sent an index of [US financial conditions]( to its lowest level since November 2021. In other words, [firms are still finding it easy to raise money](. Here's [why](. [Read The Quicktake]( 🎯 On Our Radar 1. World domination. Here’s how [cockroaches]( took over the planet. 2. AI-enhanced investing is here. Unlock the [control of a brokerage, smarts of AI, and guidance of an advisor]( with Magnifi.* 3. The cat that didn’t get the cream. Nope, your cat should not be eating [the same diet as Garfield](. 4. Bitcoin's highs have come with some serious lows. [Find out how to invest in crypto]( without the emotional rollercoaster.* 5. That age-old question. This could be the perfect way [to grill a steak](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... All events in UK time. 💰 [The Insiders' Guide To Leveraged And Inverse ETF Trading](: 5pm, June 13th 🔒 [How to Future-Proof Your Finances In Five Years](: 5pm, June 18th 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, June 19th 🤑 [How AI Can Help You Invest Like The Wealthy](: 5pm, June 25th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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