Justin's note: If you’ve been reading the Dispatch over the last few months, you know that there’s a huge opportunity right now in cryptocurrencies.
My colleague Teeka Tiwari, editor of Palm Beach Confidential, knows more about this space than anyone I know. In his essay below, he reveals the latest “mainstream moment” for bitcoin…
By Teeka Tiwari, editor, Palm Beach Confidential
VanEck is one of the biggest asset managers in the United States.
The firm opened in 1955. And in 1968, it launched the VanEck International Investors Gold Fund (INIVX), the first U.S. gold fund.
Today, VanEck’s exchange-traded funds (ETFs) have $30 billion in assets under management. That’s more than ETF issuers JPMorgan, Goldman Sachs, and Barclays.
The company offers more than 50 ETFs. And it manages assets for over 400 institutions—including banks, pension funds, and endowments.
Here’s the thing about VanEck…
It specializes in precious metals. Most of its assets are gold investments. And it runs some of the world’s largest gold funds.
But now the company is making the jump into bitcoin.
On August 11, VanEck filed with the U.S. Securities and Exchange Commission (SEC) for the VanEck Vectors Bitcoin Strategy ETF.
The fund would initially invest in bitcoin futures contracts and trade on the Nasdaq.
It’s no surprise VanEck is launching a bitcoin ETF. The cryptocurrency has vastly outperformed gold this year (see chart below).
As you can see, bitcoin has crushed gold this year. Bitcoin is up 310% since January, while gold has gained only 11%.
Don’t get me wrong. I like gold. I own it and suggest that my subscribers have a portion of their assets in gold.
But the global gold market is already worth $7 trillion. With a market that size, it just can’t compete with the profit potential of bitcoin.
Bitcoin has a market cap of just $66 billion. It doesn’t have to displace gold to rise another 10 times from here.
It just needs to become an alternative “chaos hedge,” and we could see bitcoin at $40,000 per coin.
We’re already seeing bitcoin become a safe-haven asset in crisis-stricken countries like Venezuela, Greece, and Cyprus. People are turning to it to protect their wealth from inflationary government policies and capital controls.
The smart operators at VanEck understand the potential of bitcoin. Not only is it a great investment, but it’s also a safe haven like gold.
That’s why they are pushing ahead with their own ETF. Here’s what VanEck said about bitcoin:
VanEck believes that the technology underlying digital assets, known as distributed ledger technology [blockchain], has tremendous potential to revolutionize finance and trade. Digital assets are an investable asset class in their own right and continue to be integrated into the broader economy.
Don’t let all that high-minded talk fool you.
The folks at VanEck see the upside potential in bitcoin. They know they can make millions in fees getting into the bitcoin ETF business early.
I’m certain we’ll see more traditional asset managers like VanEck eagerly lining up to launch bitcoin ETFs.
We don’t know whether the SEC will approve this ETF. But this is the latest evidence that bitcoin is becoming mainstream.
As more people adopt bitcoin, we could see a price of $5,000 this year.
We remain very bullish on bitcoin. You should own some today.
Let the Game Come to You!
Teeka “Big T” Tiwari
Editor, Palm Beach Confidential
P.S. Tonight at 8 p.m. ET, I’ll be hosting a live Q&A session and sharing the top cryptos on my watch list… You can submit a question to me in advance right here.
Plus, my team has set aside $100 worth of bitcoin per attendee. But you can only claim your stake if you attend tonight’s webinar. It starts in only a few hours, so click here to reserve your seat now.
Regular Dispatch readers know we’ve been covering the massive opportunity in the marijuana industry over the past few months. And many of you are interested in learning more about the sector…
Seriously thinking about it on a small scale to get my toe wet!
I would like to learn more about investing in the marijuana market.
Yes, I think it has explosive potential.
Have you started investing in the marijuana industry? Let us know how it’s going—or if you have any questions—right here.
And more kind words for Doug’s recent essay on phyles…
Fantastic reading, mind opener. "Once your mind has been stretched by a new idea it can never go back to its original dimension". Mr. Casey keeps stretching my mind.
As always, we appreciate the feedback.
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