Alternative Investing Report - December 20, 2024

*as of 12/19; Sources: S&P, BTC, FTSE, DJRE, 30YM

Since the Fed announced fewer anticipated rate cuts in 2025, the crypto market has taken a beating, with total market cap of the asset class down around 9% overall. Bitcoin had just hit an all-time high of over $108,000, but has dropped nearly $12,000 in two days. Other major coins such as Ethereum, Solana and Ripple have all seen double-digit losses.

➨ TAKEAWAY: A retracing seemed bound to happen after the crypto market’s rapid gains in the weeks since the election. As it has become adopted by institutions, crypto has become much more correlated to the broader economy and stock market, though with larger swings. This type of volatility is one reason that many financial advisors are still shying away from crypto and recommend it only make up 1-5% of an investor’s overall portfolio.

Vincent CEO Eric Cantor was joined by FilmHedge founder Jon Gosier, Slated’s head of film finance Jay Burnley, and Republic’s head of film Marc Iserlis - to talk about why now is a good time to invest into films, and the benefits and risks of the asset class.

Existing-home sales jumped by a surprising 4.8% in November and were up 6.1% year-over-year, the biggest gain since June 2021. The median sales price was down slightly for the month but is up 4.7% year-over-year. Housing inventory fell by 2.9% in November but is up 17.7% year-over-year. More recent data from Redfin shows that new listings are up 7.6% year-over-year.

➨ TAKEAWAY: Buyers and sellers are finally coming off the sidelines as it becomes clear that mortgage rates are not going to fall anytime soon. With a strong economy, homebuying demand is at its highest level in over a year, and more sellers are listing their homes. The market seems to be coming to life just in time for 2025.

🚀 TikTok ban: The U.S. Supreme Court agreed to hear a challenge to the TikTok ban on January 10, just 9 days before the ban is due to take effect. Given incoming President Trump’s desire to reverse the ban, this is a good sign for parent company ByteDance.

🏀 Warriors most valuable: With an estimated franchise value of $9.1 billion, the Golden State Warriors are the most valuable team in the NBA, followed by the New York Knicks ($8.3 billion) and Los Angeles Lakers ($8.1 billion). All three teams saw double-digit percentage growth last year, and the average NBA franchise value rose by 15%.

🏡 Luxury hotspots: The most popular areas where luxury home purchases are growing include Panama City, Turks and Caicos, as well as…Cleveland and Northwest Arkansas.

🚀 Secondaries record: Secondaries funds have raised over $100 billion this year, setting a new all-time high, including StepStone’s VC record $3.3 billion secondaries fund launched in June.

⚾ Mantle card record: A signed 1952 Topps Mickey Mantle card sold for $793,000, setting a new public sale record for any signed vintage card. The sale price represents a significant profit over its last sale for $422,400 last year.

🪙 Crypto theft: North Korean hackers stole an estimated $1.3 billion in crypto last year, nearly double the $660 million they took in 2023, underscoring the importance of security on the blockchain.

Monday: 💵 Affirm x Sixth Street, 🏢 Industrial RE market
Tuesday: 🪙 Memecoin madness, 🏡 Rental market update
Wednesday: 🚀 SoftBank pledge, 🎨 Auction house woes
Thursday: 📊 Fed rate cut, 🚀 Databricks’ record fundraise

Have a great weekend!