Home Bubble Like Bets Bloom in Crypto

Are we in danger? [Click to view in browser](. Dear Reader, We have some BIG UPDATES for all you Markets and Minds subscribers. [And you need to take action now to make sure you don't miss out!]( Our newsletter got a complete makeover. We overhauled the format and layout of the newsletter, making it easier to read and simpler to follow. And gave it a nifty new title - THE JUICE [But you won't receive this newsletter unless you sign up HERE.]( Because pretty soon, Markets and Minds will disappear FOREVER! Proprietary Data Insights Financial Pros Top Crypto Searches This Month Rank Name Searches #1 Bitcoin 1,059 #2 Ethereum 374 #3 Litecoin 13 #4 Ripple 6 #5 Bitcoin Cash 6 NFT’s Trade Like Stocks Non-Fungible-Tokens (NFTs) represent a unique ownership of some item that cannot be duplicated. It’s like owning a $1 bill that you write your name on and add a GPS tracker to. What’s interesting is that many of these NFTs now trade like a combination of stocks and angel investments. If you go onto sites like Sandbox, you’ll find NFTs that you can buy from listed sellers. Many traders are opening accounts, buying NFTs and then reselling them, attempting to make a profit. Unlike stocks, each NFT is 100% unique. It would be like identifying share 1,233 of Apple’s stock. That means each individual NFT trades independently, even if it’s part of some larger program or brand. When you pull up the individual NFT, you get to review a whitepaper that explains the purpose of the NFT and what you get with it. It’s similar to what you see on Angel Investing where they explain what the company does. Sometimes your NFT is a digital drawing or program. Sometimes it’s basically nothing at all other than a made up token. If you’re interested in learning more about NFT trading, we recommend spending some time on the major sites learning about them and how it works including Sandbox, Decentraland, and Enjin. Sponsored [Never Miss Earnings Dates for Major Stocks]( Q1-2022 Earnings Season is coming to an end. Q2-2022 Earnings Season is only a few weeks away. When 100s of companies release Earnings on the same day, it becomes very difficult to track notable Earnings dates for trading or investment purposes. So I came up with a special report called ["Notable Earnings Report."]( This report gets delivered to your inbox daily before the market opens (so you'll always be up-to-date on critical earnings announcements). I am offering this daily special report to you for FREE. [Click Here and Get Your Report.]( Crypto Home Bubble Like Bets Bloom in Crypto Key Takeaways: - Goldman Sachs is set to offer its first cryptocurrency derivative product over-the-counter (OTC) to Galaxy Digital. - Derivatives obtain their value from the asset they track such as futures and options contracts. These two examples trade on exchanges and are highly regulated. - OTC derivatives are contracts between private parties, such as Goldman and Galaxy, which are lightly regulated. - Similar products on mortgages led to the housing crisis more than a decade ago. Reckless bets on mortgages brought the world economy to its knees. Those risky derivatives just showed up in the crypto space. Derivative Bets The term ‘derivative’ refers to a product that derives its value from another asset. Options contracts and futures are derivatives since the value of those products is derived from the S&P 500 (along with some other items mixed in). While the trading of stocks is highly regulated, derivatives may or may not be. Typical options and futures contracts are tightly controlled. Over-the-counter (OTC) derivatives are not. In fact, they’re minimally regulated. Goldman’s OTC Derivatives It was reported that Goldman Sachs (GS) is close to offering its first OTC cryptocurrency derivative. Goldman traded a ‘non-deliverable’ contract with Galaxy Digital. While many details aren’t known, a non-deliverable product means that the buyer and seller settle up with cash at expiration, similar to index futures. That differs from commodity futures which can require the buyer to take ownership of the asset like oil. Pros & Cons Derivative products help institutions participate in the cryptocurrency market. Large funds may prefer this route because it can provide leverage. Or, if their investment would be large enough to move the actual price of a cryptocurrency, this helps them avoid that. The problem is these products aren’t well regulated. That leaves major gaps in reporting. We saw the problem this can cause back in March of 2021 when Archegos Capital blew up because they obtained too much leverage by exploiting a loophole that let them hide their total exposure from each of their lenders. The Bottom Line: The OTC derivatives market doesn’t get much attention, but it should. More than a decade ago, similar derivatives on mortgages led to the global economic collapse However, when larger funds become involved in cryptocurrency markets, it adds liquidity and tends to reduce price swings, as well as adding legitimacy. For owners of cryptocurrencies, this can help create a price floor during large selloffs. Right now, there are only a few stocks tied to cryptocurrencies. Marathon Digital (MARA), Microstrategy (MSTR), and Riot (RIOT) are traded on major exchanges. The Grayscale Bitcoin Trust (GBTC) trades in OTC markets and owns Bitcoin. There is also the Proshares Bitcoin Strategy ETF BITO which tracks Bitcoin using futures contracts. Still, we’d like to see more options in the ETF world for retail investors. [Make sure to sign up for The Juice to keep receiving our premier investment newsletter.]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [whitelist us](. Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2022 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc. newsletter is for information purposes only and opinion-based. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or against losses. No representation or implication is being made that using any of these methodologies or systems will generate returns or ensure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](