Alternative Investing Report - October 8, 2024

In partnership with

_{*as of 10/7; Sources: S&P, BTC, FTSE, DJRE, CL50}

The defunct cryptocurrency exchange FTX had its bankruptcy plan approved by the court, clearing the way for it to repay its customers $16.5 billion. Those who had less than $50,000 on the exchange, which represents 98% of all customers, will be repaid within 60 days of the plan’s effective date, which is yet to be determined. In total, customers will be receiving at least 118% of the value in their accounts as of November 2022, which will disappoint some, as Bitcoin has nearly quadrupled in value since FTX went bankrupt.

➨ TAKEAWAY: The nearly two-year old saga is finally coming to an end, with founder and former CEO Sam Bankman-Fried sentenced to 25 years in prison and accomplices Ryan Salame (7.5 years) and Caroline Ellison (2 years) also receiving jail time. Two more executives pled guilty and are to be sentenced in the coming months. With those in charge getting punished, and FTX making its way out of the news cycle, mainstream investors could be more confident in the crypto market going forward.

National active home listings rose by 11.6% in September and are up 34% year-over-year in the wake of falling mortgage rates and the Fed rate cut. Overall, it is the highest number of active listings since in April 2020, and the median price of homes for sale decreased 1.2% to $425,000. Seattle, Washington, DC and San Jose were the cities with the biggest growth in listings, while Vermont, Florida and Georgia saw the biggest jumps for states.

➨ TAKEAWAY: Not surprisingly, markets where supply has increased have seen lower price growth compared to markets where supply is still lagging. As covered yesterday, homebuying demand is also up, though the rise in mortgage rates the last few days might dampen enthusiasm.

⚾ Ohtani auction settlement: The drama surrounding Shohei Ohtani’s 50th HR ball has been partially resolved, as Goldin Auctions reached a deal with the three parties who are claiming the ball. The winner of the ongoing auction, which has been bid up to $1.83 million, will get clear title to the ball, and the pending litigation will determine the split of the proceeds.

🏢 OpenAI’s NYC office: Fresh off its funding round, the AI startup is leasing 90,000 square feet of office space in lower Manhattan, as the AI boom continues to bring an unexpected boost to the CRE market.

🎨 Six-figure discovery: A 1912 painting by Canadian artist Emily Carr is expected to sell for between $100,000 - $200,000 in November after being bought for $50 at a barn sale in the Hamptons.

🏡 New construction: Bend, OR has seen the highest year-over-year growth in new construction listings, followed by Miami and Seattle, meaning the overall housing supply is growing in those markets, which could push prices down.

🚀 ElevenLabs valuation: The AI audio startup, which has seen its revenue more than triple this year, could be eyeing a $3 billion valuation in a new funding round, compared to its latest valuation of $1 billion from January.

🥃 Whiskey auction: Over 300 lots of rare whiskey, including a bottle of Glenlivet Generations 80-Year-Old that could fetch six-figures, will go to the auction block at Bonham’s next week.

This 2 bedroom, 1 bath house may only measure 260 square feet, but it sits on nearly 4 acres of land in Great Valley, New York, about an hour south of Buffalo. The tiny house was custom built in 2021 and has a front porch and covered patio. Listed at just $139,900, it could make for a nice weekend getaway or a short-term rental.