Alternative Investing Report - November 22, 2024

*as of 11/21; Sources: S&P, BTC, FTSE, DJRE, CL50

Cryptocurrency Solana reached an all-time high of $264, just two years after its price dropped as low as $8 in the wake of the FTX collapse. It is up more than 20% in the last week, over 50% in the last month and 380% in the last year. Bitcoin also hit an all-time high of $99,300, and is up nearly 50% over the past month as well.

➨ TAKEAWAY: Solana’s recovery in the past two years has been extraordinary, and it could be poised to challenge Ethereum for the #2 spot in the coming years. Give founder Raj Gokal’s interview a listen for more color. Two news items could have been the catalyst for the strong day across crypto markets - first, the resignation announcement by SEC chair Gary Gensler, who has been a thorn in the industry’s side, and second, the rumor that incoming President Trump may name a “crypto czar.” As Bitcoin approaches the psychological barrier of $100,000, that could lead to greater demand, or could lead to profit-taking.

In this episode of Smart Humans, Slava Rubin talks with Solana co-founder Raj Gokal about building the 4th biggest cryptocurrency, navigating the asset class, and his outlook for 2025.

A rare 1652 American silver coin sold at auction for a record-breaking $2.52 million after being discovered in an old cabinet in the Netherlands. It is one of three copies of the coin known to exist, with one belonging to the Massachusetts Historical Society, and another whose whereabouts are unknown after being stolen from Yale in the 1960s. Another rare coin, the highest graded 1870 $20 gold “double eagle,” sold for $1.44 million, falling short of its $2 million pre-sale estimate.

➨ TAKEAWAY: Despite having a thriving community, rare coins are still often looked at as niche collectibles. When an item is desirable and is the only one available, as is the case with the 17th century silver coin, or the highest graded, like the double eagle, it can spur bidding wars. Though the double eagle sale fell short of expectations, it still represented a strong long-term return since it was last sold for $23,100 in 1986.

🍌 The $6.2 million banana: Maurizio Cattelan’s “Comedian,” an artwork that consists of a 35-cent banana duct-taped to the wall, sold at Sotheby’s for $6.2 million, smashing the pre-sale estimate of $1 million - $1.5 million. The piece is a commentary on the absurdity of the art market and fittingly, it was purchased by a crypto billionaire who says he plans to eat the banana.

📰 Gensler to resign: SEC chair Gary Gensler announced that he will step down from his office on January 20th to allow the incoming administration to appoint a new head of the regulatory agency. It is expected that the new chair will be crypto and startup-friendly, and could be a boon for those asset classes moving forward.

🚀 Oura’s $5 billion valuation: The wearable health tracker startup has seen its value double since its 2022 Series C, as it became profitable and doubled its revenue in 2024.

🏡 Mortgage demand rising: Even as rates remain near 7%, mortgage applications were up 1.7% last week as buyers start to re-enter the market. Refinance applications were also up 2% on the week and 43% year-over-year.

🎸 George Harrison’s guitar: The Beatle’s 1958 Futurama electric guitar sold for $1.27 million, a new Beatles record, which exceeded its pre-sale high estimate of $800,000.

💵 Fund manager gender gap: Only 12.5% of portfolio managers worldwide are women, even as numerous studies have shown that mixed-gender teams provide better overall returns.

Monday: 🪙 Gensler resignation, 🚀 Y Combinator
Tuesday: 🎨 Fall art auctions, 🏡 Homebuilder index
Wednesday: 🚀 ByteDance valuation, 🎨 Magritte record sale
Thursday: 🏡 RE Buyer’s market, 📊 Secondary market update

Have a great weekend!