🔦 Bitcoin’s ETF “spot” light

…and cannabis could get reclassified   Gray zone (Jakub Porzycki/Getty Images)   Yesterday’s Market Moves   Dow Jones 34,722 (-0.48%) S&P 500 4,508 (-0.16%) Nasdaq 14,035 (+0.11%) Bitcoin $26,021 (-4.70%) Dow Jones 34,722 (-0.48%) S&P 500 4,508 (-0.16%) Nasdaq 14,035 (+0.11%) Bitcoin $26,021 (-4.70%) Hey Snackers, Subway is giving off “just acquired for $9B and lookin’ to spend it” vibes. Its latest restaurant is a 180-foot(long) [blimp]( that’ll serve subs 1K feet in the air. Trips last for just 30 minutes, so you should be good to hop on during your lunch break. Stocks fell short of a fifth straight day of gains as the S&P 500 finished in the red yesterday — and logged its first monthly loss since February. [Apple]( saw its fifth daily gain ahead of its fall event, while [Dollar General]( plunged 12% after slashing its annual outlook. FYI: US markets are closed Monday for Labor Day, so we’ll be back in your inbox on Tuesday. Fund Bitcoin could finally get its first ETF, opening the door to institutional crypto trading Bitcoin’s big W… The first bitcoin-backed ETF could be closer than ever. This week, Grayscale Investments, the world’s biggest crypto fund, scored a rare victory after a DC court ruled that the US Securities and Exchange Commission was wrong to deny its request to convert its bitcoin fund into a spot bitcoin ETF last year. Exchange-traded funds typically invest in a basket of securities (like stocks) to track their movement and can be traded like a regular stock. Bitcoin ETFs would allow investors to get direct exposure to the coin without actually owning it. - Up next: While Grayscale’s CEO says the decision is a “huge win” for crypto, the SEC still isn’t required to approve the ETF application and could appeal the ruling. - Crypto craze: Bitcoin’s price jumped nearly 6% after the decision on Tuesday, while [Coinbase]( stock rose more than 15%. Crypto’s Wall Street dreams… For over a decade, crypto firms have tried to launch ETFs directly tied to bitcoin’s spot price in [hopes]( of attracting more institutional investors. So far the battle’s been a losing one. The SEC has denied all 30+ ETF proposals since 2021, saying applicants haven’t shown they can prevent market manipulation. But optimism picked up in June after [BlackRock]( the world’s largest asset manager, filed for its own bitcoin ETF. - Blockchain boost: Analysts just boosted bitcoin’s ETF approval odds to 75% by the end of this year, and 95% by the end of 2024. THE TAKEAWAY One key can open many doors… While the DC court’s decision doesn’t guarantee Grayscale’s ETF request, it's an important step toward eventual approval. Several bitcoin spot ETF applications were expected to get the SEC’s “first deadline” decision in the coming days, but yesterday the regulator delayed some decisions to October. Since crypto enthusiasts view spot ETFs as an entry into the regulatory mainstream, approval could pave the way for more wins. Budding Cannabis gets the official rec to be reclassified as a lower-risk drug in a symbolic step Check my schedule… The US Department of Health and Human Services [recommended]( moving marijuana to a lower federal risk category. Currently, the US gov’t considers it a Schedule 1 drug, meaning it has “no accepted medical use and a high potential for abuse.” That puts cannabis in the same category as heroin and ecstasy, in a class considered riskier than cocaine and fentanyl. The HHS is recommending the DEA knock it down to Schedule 3, lining it up with prescribable drugs that are considered less dangerous, like ketamine. - Lit: Cannabis stocks were fired up on the news. [Canopy Growth]( closed yesterday up 26%, while Curaleaf rose 18% and Canadian canna-biz leader [Tilray]( was up 11%. More smoke than substance… Rescheduling, if the DEA approves it, would be more of a symbolic win for cannabis companies than a practical one. The biggest impact for businesses would be that they could get some federal tax breaks that are off limits right now because of cannabis’s Schedule 1 status. The change would also make it easier for researchers to get approval to conduct cannabis studies. Some advocates argue it’s not enough: - De- not Re-: Lawmakers like Democratic Sen. John Hickenlooper of Colorado say cannabis shouldn’t be ranked in the DEA’s five “schedule” categories at all, which would put it on par with alcohol and nicotine. - Mismatch: Others call out that rescheduling still doesn’t line up cannabis’s (illegal) federal status with state laws. Cannabis is legal for recreational use in 23 states and for medical use in 38. THE TAKEAWAY Law lags behind public perception… Nearly 9 in 10 Americans support medical or recreational legalization. Marijuana is the most commonly used federally illegal drug — with about 1 in 5 Americans partaking at least once in 2019. President Biden pardoned thousands of people convicted with marijuana possession in October, saying his admin would reconsider the drug’s scheduling. But legalization is gridlocked in Congress, where it has some (but not enough) bipartisan support. What else we're Snackin' - [Click]( [Shopify]( will let its merchants offer “Buy with Prime” on their storefronts in a surprising team-up with [Amazon](. Prime members get the benefits of Amazon’s speedy payment and delivery on non-Zon sites. - [Juice]( The US Energy Department plans to provide up to $12B for carmakers to update their factory facilities for EV and hybrid production. Biden wants two-thirds of all new cars to be electric by 2032. - [Rocky]( Trader Joe’s issued its sixth recall in two months, this time for black-bean tamales that may contain unlisted milk. TJ’s recently recalled two types of cookies because they might contain rocks. - [Clean]( [E.l.f.]( the Gen Z fave budget-beauty company, said it’ll buy viral body-wash brand Naturium for $355M. Companies are getting big boosts from social traction (picture: “TikTok made me buy it” products). - [Print]( Apple is said to be testing the use of 3D printers to produce parts of its watches. The new method could streamline Apple’s supply chain and be applied to more of its gadgets. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day 38% of US homebuyers under 30 bought their house with financial help from family [Read more]( Friday - August US unemployment numbers Authors of this Snacks own bitcoin and shares of: Amazon, Apple, and Shopify Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](