The Wolf Den #979 - Everything You Need Is Right At Your Fingertips
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In This Issue:
Everything You Need Is Right At Your Fingertips
Bitcoin Thoughts And Analysis
Legacy Markets
President Biden Vetos H.J.Res. 109
ARK Backs Out Of Ethereum ETF
USDe Is Gaining Momentum
CZ Begins His Sentence
Bitcoin Will Reach $8 Trillion Market Cap | Jan Van Eck
Everything You Need Is Right At Your Fingertips
Many people remain unaware of the wealth of publicly available information at their fingertips. It is remarkably straightforward to uncover who is invested in what, including the portfolios of the most illustrious investors. Contrary to the common assumption that these investors operate under a veil of secrecy, they are, in fact, not concealed from public scrutiny.
At least in this aspect, our regulators have excelled.
A prime example of this underutilized resource is the SEC's EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system. This comprehensive online database houses an extensive array of documents, including 13-F forms that disclose a fund's holdings for specific reporting periods.
While the SEC cautions, “The reader should not assume that the information is accurate and complete,” this database predominantly provides valuable and accurate insights. For instance, if I were to investigate Cathie Wood's recent activities, I would navigate the EDGAR tool, search for “ARK Investment,” filter the filings to “13F-HR,” and then access the “infotable.html” on the subsequent page.
This page reveals all of ARK’s holdings, but it is clunky and makes it difficult to determine which assets belong to which fund. Navigating EDGAR is cumbersome and should be a last resort if other options are exhausted. It is also important to note that not all funds are required to file 13F forms. Hedge funds and other private funds may have different reporting requirements or may not be obligated to disclose their holdings publicly. However, this doesn't mean that basic research isn't feasible.
If I were genuinely curious about Cathie Wood’s recent activities, a quick Google search for “ARK holdings” would promptly direct me to an official ARK page, providing all the information I need. ARK offers comprehensive details about each of their funds, including data beyond what the SEC provides, such as current market prices and NAV. They even list their assets by weight within specific funds, which is particularly valuable since most investors are primarily interested in the top holdings.
If ARK's organization doesn't meet my needs, the second Google link offers a third-party perspective on ARK's holdings. This site, called Cathie’s Ark, ranks all assets by weight, making it very convenient and free. For a deeper dive, there's even a Reddit group titled r/ArkInvestorsClub, with 17,000 members discussing the fund’s holdings.
The point I'm trying to make isn't specifically about ARK; rather, it's that there is an abundance of public information available if you are willing to seek it out.
Regarding education, that's all I intended to share for today. While I never recommend copy trading, a great starting point is to find a public figure who shares your values. Examine their holdings, identify a company or sector you're familiar with, and begin your journey there. You can further explore by using EDGAR to review their past sales and purchases. Firms invest millions in research, and with some investigation, you can uncover the financial decisions they spent millions to make.
Now for the fun part: I will share what some of the top investors are currently holding. All of this information was easily found using Google. Remember, third parties are not infallible, and even the SEC advises that readers should not assume the information is entirely accurate.
Cathie Wood’s ARK Total Holdings:
Tesla - 8.7%
Coinbase - 7.52%
Roku - 6.22%
Square - 4.85%
Roblox - 3.93%
Robinhood - 3.81%
CRISPR Therapeutics - 3.68%
Bill Ackman’s Pershing Square Capital:
Chipotle Mexican Grill - 20.1%
Restaurant Brands International - 18.54%
Hilton Worldwide Holdings - 18.2%
Alphabet Inc. Class C - 13.27%
Canadian Pacific Railway - 12.37%
Howard Hughes Corporation - 11.41%
Alphabet Inc. Class A - 6.11%
Tim Draper’s Draper Asset Management:
Apple - 24.23%
Amazon - 20.82%
Nvidia - 15.51%
Alphabet Inc. Class A - 11.56%
Tesla - 5.26%
Uber - 5.06%
Lilly (Eli) & Co. - 4.11%
Ken Griffin’s Citadel Investment Advisory:
Berkshire Hathaway Inc. Class B - 25.52%
Markel - 13.49%
Alphabet Inc. Class A - 4.26%
Microsoft - 3.54%
Alphabet Inc. Class C - 2.70%
Johnson & Johnson - 2.14%
Ray Dalio’s Bridgewater Associates:
iShares Core S&P 500 ETF - 5.57%
iShares Core EMSCI Emerging Markets ETF - 4.87%
Alphabet Inc. Class A - 4.10%
Proctor & Gamble - 3.37%
Nvidia - 3.22%
Peter Thiel’s Founders Fund:
Cyclo Therapeutics - 61.13%
Nova Measuring Instruments - 19.09%
Rigetti Computing - 12.40%
Unity Biotechnology - 7.38%
Paul Tudor Jones’s Tudor Investment Corp.
iShares Russell 2000 ETF (PUT) - 17.21%
iShares Russell 2000 ETF (CALL) - 4.97%
Pioneer Natural Resources - 1.76%
Bitcoin Thoughts And Analysis
It is essential to occasionally zoom out.
Taking a look at the weekly chart gives us an astounding picture of Bitcoin’s move. This consolidation looks like almost nothing after this run up from $15,000 - just the expected chop after the halving.
As you can see, we are trading in the top half of the blue range, which means we should eventually visit the range highs. A break above send us back into price discovery,
Be patient - everything still look exceptionally strong.
Legacy Markets
Global stock markets experienced a strong rally to kick off the week. GameStop Corp. more than doubled in pre-market trading, igniting speculation of a return to the meme stock phenomenon. This surge followed a Reddit post by Keith Gill, indicating a significant $116 million position. Concurrently, Indian shares reached record highs as exit polls suggested a victory for Prime Minister Narendra Modi. The Sensex index jumped 3.1%, and the rupee saw its most substantial strengthening in a year, driven by investor optimism that Modi's win would enable further economic growth policies.
S&P 500 futures rose by 0.2%, and Europe’s Stoxx 600 index saw gains, while the MSCI Emerging Markets Index increased by 2.1%. The dollar strengthened as yields on 10-year Treasuries edged lower. Investors were buoyed by positive US economic data from the previous week, raising hopes that policymakers might start easing policies.
Vincent Chaigneau, head of research at Generali Investments, pointed to a likely rate cut from the European Central Bank on Thursday and anticipated that the Federal Reserve would follow suit in September. He noted, “We expect the combination of a mild global recovery and a continued disinflation trend to persist into the summer,” though he cautioned that elevated investor positioning in risk assets and market optimism could lead to temporary setbacks.
In Mexico, the peso slid as preliminary election results showed a landslide victory for the ruling party, raising concerns about increased state control. Meanwhile, South Africa faced political uncertainty after elections failed to produce a clear winner, leading to ongoing coalition negotiations.
Oil prices fluctuated following OPEC+'s announcement to extend production cuts while setting a date to gradually restore some output later this year, sparking debate on whether the market can absorb the additional barrels. If GameStop's premarket gains hold, it could add about $8 billion to its market capitalization. The resurgence in GameStop was driven by a June 2 screenshot from Keith Gill’s Reddit account, showing five million shares purchased at $21.27 each, along with 120,000 call options worth $65.7 million, set to expire on June 21. This marked Gill's first post in three years, contributing to the renewed interest and speculation around the stock.
Overall, election results and market expectations for policy easing dominated the news, reflecting a highly optimistic market environment with cautious undertones regarding potential risks.
Some key events this week:
US construction spending, ISM Manufacturing, Monday
International Atomic Energy Agency board meets in Vienna, Monday
South Korea CPI, Tuesday
Germany unemployment, Tuesday
South Africa GDP, Tuesday
Brazil GDP, Tuesday
US factory orders, JOLTS, Tuesday
Australia GDP, Wednesday
South Korea GDP, Wednesday
China Caixin services PMI, Wednesday
Eurozone S&P Global Services PMI, PPI, Wednesday
Canada rate decision, Wednesday
Eurozone retail sales, ECB rate decision, Thursday
China trade, forex reserves, Friday
Eurozone GDP, Friday
Mexico CPI, Friday
Chile copper exports, trade, CPI, Friday
US unemployment rate, nonfarm payrolls, wholesale inventories, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.4% as of 10:13 a.m. London time
S&P 500 futures rose 0.2%
Nasdaq 100 futures rose 0.4%
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index rose 1.7%
The MSCI Emerging Markets Index rose 2.1%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.1% to $1.0837
The Japanese yen rose 0.2% to 157.07 per dollar
The offshore yuan was little changed at 7.2593 per dollar
The British pound fell 0.3% to $1.2698
Cryptocurrencies
Bitcoin rose 1.9% to $69,073.4
Ether rose 0.8% to $3,815.71
Bonds
The yield on 10-year Treasuries declined two basis points to 4.48%
Germany’s 10-year yield declined two basis points to 2.64%
Britain’s 10-year yield declined three basis points to 4.29%
Commodities
Brent crude rose 0.3% to $81.33 a barrel
Spot gold was little changed
President Biden Vetos H.J.Res. 109
Following strong votes in both the House and Senate, President Biden has decided to veto H.J. Res. 109, disappointing the crypto industry, which had hoped for a shift in the administration’s stance. In his commentary on the bill, President Biden stated, “My Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets…” However, he then made the issue partisan, which won't facilitate the passage of sensible legislation: “This Republican-led resolution would inappropriately constrain the SEC’s ability to set forth appropriate guardrails and address future issues.”
President Biden had warned that he would veto this bill, so the outcome isn’t a huge surprise. Nonetheless, the focus now shifts to FIT21, where the Senate unfortunately has no time constraints on when they act. If Biden stays true to his word, not all hope is lost, but it appears he is playing a dangerous game of seeing how much damage he can inflict on the crypto community without making it obvious. Failure to pass any sensible legislation will be very costly come November.
ARK Backs Out Of Ethereum ETF
A revised S-1 form reveals that Cathie Wood’s ARK Invest has terminated its collaboration with 21Shares and will no longer be pursuing the Ethereum ETF. ARK expressed that it remains “fully committed” to ARKB (21Shares + ARK) but will not be proceeding with an Ethereum ETF. The statement further emphasized, “As for Ethereum, ARK believes in its transformative potential and the long-term value of the Ethereum blockchain, but, at this time, ARK will not be moving forward with an Ethereum ETF.”
Cathie Wood had previously noted that the Bitcoin ETF was not profitable due to low fees, elucidating why ARK did not see the necessity of partnering with 21Shares on the Ethereum ETF. It is conceivable that ARK may shift its focus towards acquiring the spot ETH ETF rather than issuing it, which would indeed be an intriguing development.
USDe Is Gaining Momentum
Ethena Labs' USDe synthetic dollar has impressively reached a $3 billion supply just four months after its February 2024 launch. Notably, USDe surpassed the $2 billion mark on April 5th and now requires about $2.3 billion more to overtake the algorithmic stablecoin DAI. DAI is currently the 24th largest cryptocurrency and ranks third among stablecoins, just behind Tether and USDC. Currently ranked #212 by market cap, USDe is well-positioned to bridge this significant gap if its rapid growth continues. Such momentum could enable it to achieve network effects and potentially challenge USDC and Tether as it ascends into the top tier of stablecoins. However, if its market cap growth slows or halts, it may suggest that the increase so far has been primarily driven by the ENA governance token airdrop.
CZ Begins His Sentence
I’m already looking forward to October when CZ’s four-month jail sentence will be complete. This brief period will be just a blip in his epic career, one that nobody will think twice about. CZ has done so much for the space, and even if he never takes on a role as significant as Binance again, his contributions are greatly appreciated. In four months, I’ll be right back here celebrating his freedom.
Bitcoin Will Reach $8 Trillion Market Cap | Jan Van Eck
Jan van Eck, the CEO of VanEck, an ETF Fund Manager, talks about Bitcoin, Gold, and the massive problem that will push the price of Bitcoin in the next few years. This is an interview I did with Jan at Paris Blockchain Week 2024. Enjoy!
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.