Alternative Investing Report - October 15, 2024

*as of 10/14; Sources: S&P, BTC, FTSE, DJRE, CL50

Thousands of items from HBO’s “Game of Thrones” making up 900 lots were auctioned off over the weekend, netting over $21 million in Heritage Auction’s second biggest entertainment auction ever. The iconic “Iron Throne” was the highest-selling lot, bringing in $1.49 million despite being a replica not actually used on the show. Other notable items included Jon Snow’s sword Longclaw which fetched $400,000, and a number of costumes that also went for six-figures.

➨ TAKEAWAY: Entertainment memorabilia has become a prominent subset of the collectibles world, so it is no surprise that one of the most popular shows of the past decade would create a lot of interest. These are one-of-a-kind items that collectors may never have another chance at obtaining, and the combination of rarity and desirability creates bidding wars.

Schwab’s recent survey finds that 45% of ETF investors plan to allocate to crypto ETFs in the next year, second only to U.S. equities among asset classes. The segment of crypto fans has grown from the 38% who answered the same way last year. Among Millennial investors, crypto was the top asset class, with 62% saying they have plans to invest, while among Boomers the number was just 15%.

➨ TAKEAWAY: One more data point shows that interest in crypto is rising as people look to diversify their portfolios. Not surprisingly, there is a clear generation gap reflected in these results, as younger people are much more comfortable with digital assets. As rising generations start accumulating wealth, expect more to invest in crypto, which might increase demand and prices.

🚀 SpaceX’s latest achievement: The most valuable private company in the U.S. had one of its rocket boosters successfully “caught” at its launchpad after the launch of its Starship, the biggest and most powerful rocket in the world. By retrieving the booster, SpaceX can reuse it, which significantly reduces costs.

🏡 Hottest housing markets: Once again, the list of the top 20 hottest U.S. housing markets was dominated by Northeastern and Midwestern cities, with the South shut out due to growing supply, and the West shut by high prices.

🪙 World Liberty Financial token: The Trump-supported crypto platform will start its public token sale today to accredited investors, aiming to raise $300 million at a $1.5 billion valuation, despite it still being unclear what exactly the platform will do.

🎨 Rare Ruscha painting: Christie’s November 20th-century evening sale will be led by Ed Ruscha’s 1964 “Standard Station, Ten-Cent Western Being Torn in Half,” the only large-scale piece from the 1960s by the artist that is privately owned. It carries a $50 million estimate, and could set a new auction record for Ruscha’s work.

💵 Ares private credit fund: The asset manager is targeting $7 billion for its latest fund originating loans to private companies facing financial hardships.

🚜 $289 million farmland deal: Farmland Reserve, Inc., an investment arm of the Mormon Church, is acquiring 41,554 acres of farmland across 46 farms in 8 states, adding to their holdings that currently total 1.7 million acres worth an estimated $16 billion.

A 50,000 square-foot, 16-bed, 27-bath Beverly Hills mansion at the heart of a divorce battle just hit the market. Located in the famed 90210 zip code, the house includes a theater, game room, bowling alley, wellness center, gym, and wine cellar. The estate itself includes an infinity pool, tennis court, a 2-bedroom, 2-story guest house and a separate guest apartment. It could be yours for the low, low price of $195 million, which would break a record for the most expensive home sale in Los Angeles history.