This Bitcoin fund has just increased by more than 1000%. Attention – MarketWatch

And don’t forget things like Celsius Network, ThornChain, Ocean Protocol, and ThetaToken. They are all up about 1,000% this year.

Seriously, you were hoping to retire with Bitcoin in your IRA? It’s only, like, the 37^e best cryptocurrency of 2021. Same Ethereum ETHUSD,
+ 1.25%
is up twice as much, 400%.

Ditto for the “OMG network”. Quotes: OMG.

I am not making this up.

According to CoinCodex.com, the world’s cryptocurrencies now have total ‘value’ – which means price – $ 639 billion.

Even more than Tesla TSLA,
+ 5.32%,
if you can imagine it. About three times more than Pfizer PFE,
+ 0.50%.
Hmmm, which one would I prefer to own? One-third of the world’s cryptocurrencies, or all of Pfizer’s stock?

Crypto is a great short-term trade. The momentum is crazy. And because no one can really value this stuff, no one can tell when it’s too high.

There is no point in debating the “investment case” for bitcoin as it is unknowable. Ditto for “value”. What we have now is the classic speculative mania, straight out of Extraordinary Popular Delusions And The Madness Of Crowds.

Among the bubble stocks during the South Sea Mania, wrote financial historian Charles Mackay, was a company “To have carried on a business of great advantage; but no one to know what it is.

And if you don’t believe me, look no further than the rush for the Bitwise 10 Crypto Index Fund (OTC: BITW), a statutory trust, much like a closed-end fund, which just became freely tradable this month. -this.

It’s a new smart fund. It gives you exposure to the 10 biggest cryptocurrencies with just the click of a mouse (despite being dominated by bitcoin). You can own it in your IRA, saving on all taxes and paperwork. And you can buy it through your usual broker. No setting up ‘wallets’ and apps and trying to keep track of various digital ‘keys’. (I think I still have some Ethereum somewhere. Heaven knows where.)

The price dropped from $ 12 at the start of the month to $ 140 on Wednesday, before plunging to $ 90 on Thursday. The fund was valued at the top, theoretically, at $ 1.2 billion.

There is only one problem. It’s 85% air. Not really. The actual underlying assets of the fund are only $ 170 million, or about $ 20 per share. The remaining price hike is pure speculation, nothing behind it.

In other words: “ether”, not Ethereum.

“At 3:12 p.m. ET, the fund is trading at $ 136 and the estimated net asset value is $ 18.48,” Bitwise spokesperson Matthew Hougan confirmed to MarketWatch on Wednesday. “The publicly available shares of the fund can be exchanged for a premium if the demand for public shares exceeds the number of shares available for sale,” he added. “Bitwise has no control over secondary market demand for stocks or bonuses or discounts.”

But of course, action in this market makes perfect sense.

Trading can be a lot of fun and you can make a lot of money. Congratulations to all who pass themselves off as bandits. But never confuse brains with a bull market. This is all gambling. Just make sure you get out on time.