ProChain Capital's commentary for the month ended February 29, 2024.
ProChain Capital increased in value +30.42% in February.
Year-to-date, ProChain has lost +28.95%.
Cryptocurrency investment is a MUST in every portfolio.
ProChain’s ordinary investor class has just a $100,000 initial investment minimum.
ProChain in the News
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1. Adoption
Investment.
- During February, Bitcoin ETF flows surged, slowed and rocketed, pushing the price of Bitcoin higher all the while.
- Inside of 6 weeks from launch, Bitcoin ETF totals (>$50B) now exceed 50% of Gold ETF totals ($92B), which are the largest commodity ETFs and have been around for 20 years.
- Understandably, due to an expensive fee structure, Grayscale's GBTC has been the source of Bitcoin sales, nevertheless, Bitcoin ETF net inflows have been positive.
- The massive in-flow volume and rise in price have led to new price-targets for Bitcoin.
- ProChain- Our year-end price-target for Bitcoin continues to be $100,000.
- Even JPMorgan is coming around, despite CEO Jamie Dimon's previously expressed and repeated skepticism of cryptocurrencies.
- Major wealth-management platforms, such as, Bank of America and Wells Fargo are just starting to offer Bitcoin ETFs to their clients.
- Morgan Stanley is still evaluating whether it will be offering the ETFs through their Registered Investment Advisors.
- Unsurprisingly, success and ETF excitement has also smitten Ethereum.
- The price for the second-largest cryptocurrency has hit recent highs.
- Although there is significant support for Ethereum ETF approval, the SEC has continued to push off the decision.
- There are new price-targets for Ethereum too.
Currency and Use.
- Ripple made a notable acquisition that will help its efforts to partner with financial institutions to tokenize financial assets.
- Yuga Labs, a leading NFT creator and owner, announced that it will not support marketplaces that do not comply with royalty payment requirements for creators.
- ProChain- This is an important and valuable policy that we hope is adopted industry-wide. Although NFTs are currently a niche sector, the future is broad and bright. Establishment and acceptance early-on of a policy of regularly paying royalties to creators whenever a related transaction occurs, will differentiate the NFT marketplace from every other marketplace in existence, encouraging more creation and aligning interests of creators and investors.
2. Regulation and Legal
- The strongest themes in legal and regulation are continuing.
- The October 7 attacks by Hamas on Israel has created a renewed effort to analyze the use of crypto in illicit finance and criminal activities.
- The SEC has continued its attack on the crypto industry; this time, by including DeFi exchanges in the SEC's definition of "dealer".
- Sen Elizabeth Warren is still shouting about the industry's value proposition being limited to criminals.
- ProChain- We're curious to see what becomes of Ladan Stewart and her clients, as she exits her role as the SEC's Crypto Litigation Head and begins private legal practice at White & Case.
3. Public Companies
- Reddit (NYSE:RDDT), the social media platform that is expected to conduct an IPO shortly, has disclosed that it owns Bitcoin and Ethereum.
- ProChain- In the wake of the Bitcoin ETF approval, it is increasingly likely that corporations, especially those in the technology sector, will own Bitcoin, creating additional demand for a scarce commodity and providing additional legitimacy to the asset class.
- MicroStrategy (NASDAQ:MSTR) is exploding in price and growth in the wake of the Bitcoin ETF approval and price appreciation.
- The Company has purchased more Bitcoin.
- The Company's stock received a Buy rating with a $990 price-target, based on a $125,000 Bitcoin 2025 year-end price.
- The stock has already exceeded $1,250/share 🤣
- MicroStrategy is raising more capital to buy more Bitcoin; and the market's appetite is voracious.
- Mastercard (NYSE:MA) has partnered with a mobile payments app to offer crypto loyalty rewards in Emerging Markets.
- ProChain- Amid the excitement over price appreciation, we cannot forget the amazing, fundamental changes that cryptocurrency is bringing to the un-banked population of the world, which will continue to gain strength and will eventually bring valuations much higher.
- Gryphon Digital Mining (NASDAQ:GRYP), having recently gone public, is looking to grow its mining capacity through machine purchases.
- The surge of fourth-quarter trading led Coinbase (NASDAQ:COIN) to an annual profit.
