420. Is GTBC going to become a real ETF anytime soon? 🔮 The signals are as mixed as a martini (shaken not stirred) 🍸, but we’re here with the 50/50.

In other news…Cheres x BoysClub.eth event 2night, Hacker and the Beanstalk  🌱,  LV NFTs for Louis' 200 Year Anniversary 💄, Elon/Twitter beef 🐄 ft. Nicky Minaj's Pills N Potion 💊 for full effect. 

The SEC, which has been overwhelmingly nervous about fraud in the crypto world, recently approved the Teucrium Bitcoin Futures ETF under the Securities Act of 1933. This is a #bigdeal. The 33 Act offers fewwer protections to investors than the Investment Company Act of 1940 which all past crypto ETFs were filed under, so the SEC might be warming up to the idea of crypto on the stock market 💖.

However, the Teucrium Bitcoin Futures ETF only tracks Bitcoin futures.Futures are “derivatives'' that attempt to estimate the future price of an asset 🔮 — in this case, Bitcoin. In addition to futures ETFs, crypto fans are hoping that the SEC will approve a so-called “spot ETF” that tracks the true price of cryptocurrencies. In fact, a study found that 82% of financial advisors would prefer a spot ETF over a futures ETF.

Enter Grayscale. Grayscale is well known for offering GBTC and ETH, two investments that let investors get exposure to crypto in the stock market. These investments are having a Pinnochio moment (Father SEC, when can Grayscale leave to be on its ooooooown?)… they walk 🦵 like ETFs, talk 👄 like ETFs, and look 👁 like ETFs, but they're technically trusts and not real ETFs… yet. 

Grayscale CEO Michael Sonnenshein says that that the SEC approval of the Teucrium ETF means it’s not a matter of if, but when, spot ETFs will be approved. In fact, Grayscale has asked the SEC to convert GBTC (Grayscale Bitcoin Trust) from a trust into an ETF, with a decision expected for July. 

But other news contradicts Sonnenshien’s claim. The SEC Chairman feels more comfortable with the 40 Act due to its investor protections, and the ARK21Shares Bitcoin ETF and NYDIG Bitcoin ETFs were recently rejected by the SEC due to fraud concerns (rip 🪦👼). IANAL, but we’re calling it slightly in Grayscale’s favor due to consumer demand ⚖️.

Events Calendar & Updates

🔮 Upcoming 

• Unofficial hangs with BoysClub.eth on Spaces: Join us on today, Wednesday, April 20th at 7pm ET on Twitter Spaces where we'll be speaking to BoysClub.eth. RSVP here.

🧓🏼 Passé 

• Web 3 Familia x Cheres: Join us on Wednesday, April 15th at 7pm ET on Twitter Spaces where we'll be speaking to them Web3 Familia in Spanglish on our personal journeys in investing.

• Cheres & Eve Wealth re-web3 at Soho House: Yesterday, we joined our friends at Eve Wealth and Tributelabs.xyz at Soho House NYC where we discussed investing your money in crypto & NFTs.

Cancel FOMO — keep up with the Cheraverse on Twitter, IG, and TikTok.

Quick News Bites

Beanstalk 🌱 got pruned by $182MM

The Ethereum-based protocol for stablecoin BEAN was exploited on Sunday. The hacker used a flash ⚡ loan to take ownership of lots of Stalk, the protocol’s governance token. This effectively allowed the hacker to control Beanstalk and drain protocol funds into a private wallet. The hacker absconded with about $80MM of Ethereum, donating about $250,000 of it to Ukrainian Relief Funds. Since the hack, BEAN has tanked from $1 to virtually $0 📉.

LV drops new NFTs 🎈

Last August, Louis Vuitton released “Louis: The Game,” a mobile game, to celebrate its 200th anniversary 🎈. On Sunday, the luxury brand added new levels to the game, and players who collect a certain amount of free NFTs in the app will qualify for a raffle 🎟 to get NFTs minted from LV’s Ethereum wallet. The raffle will run through August 4th, the birthday of fashion icon Louis Vuitton himself 🎂.

Twitter offers Elon a Potion Pill 💊  

Last Thursday, Elon Musk offered to buy Twitter for ~$43B 💰, 18% more than the company was worth at the time. This news seemed to shock Twitter’s Board, especially after getting snubbed by Elon’s last-minute decision to not join them. In response, the Board adopted a limited duration shareholder rights plan, AKA a “poison pill 💊,” meant to deter a hostile takeover. 

The poison pill states that if anyone owns >=15% of Twitter’s common stock (i.e., stocks with voting rights) without board approval, other shareholders will get discounts on any extra shares they purchase. The poison pill is temporary, with expiration on April 14, 2023. On the other hand, Twitter stated that it might accept an acquisition offer if it’s in the best interest of the company and its shareholders. Does that mean Elon has another chance at bat ⚾? Press X to doubt. Remember, Elon already stated that this was his “best and final” offer. Plus, things seem tense on both sides 🙈. 

Reportedly, Twitter is working with both Goldman Sachs and JPMorgan to respond to Elon’s bid, while the Tesla CEO is working with Morgan Stanley (perhaps his Plan B?). Adding fuel to the fire, PE firm Thoma Bravo has expressed interest in buying Twitter. Whew, the bidding war feels a bit like the housing market nowadays 🔥🚒. But what do shareholders think about the whole situation? Even before the poison pill, the markets weren’t confident in Elon’s proposal — TWTR shares dropped almost 2% on Thursday, and Friday was a market holiday 📉.