Alternative Investing Report - February 24, 2025

*as of 2/23; Sources: S&P, BTC, FTSE, DJRE, GOLD

In what is being called the biggest crypto heist in history, hackers have reportedly stolen $1.5 billion worth of digital assets from Bybit, the second largest cryptocurrency exchange in the world by volume. Though the Dubai-based exchange does not operate in the U.S., it still counts more than 60 million users worldwide and holds more than $20 billion in customer assets. The attack has been linked to North Korean hackers, who targeted Bybit’s “cold wallet” offline storage system.

➨ TAKEAWAY: Not surprisingly, news of the hack set off a spree of withdrawals from ByBit, and the crypto market dipped in the aftermath, though it recovered to its previous pre-hack level as it became clear that ByBit has the assets to ensure customer funds would not be lost. However, massive hacks and thefts underscore the risks still inherent in the asset class and can slow the pace of mainstream adoption.

The weekend brought a pair of high-profile collectibles auctions, with the Winter Goldin 100 and Heritage’s Winter Platinum sports auction both seeing seven-figure sales of prominent items. Heritage’s auction included a $1.58 million record sale of a 1961 Roger Maris game-worn jersey, as well as a $1.37 million 1916 Babe Ruth card and a $1.01 million 1955 Roberto Clemente card. Goldin’s auction saw a LeBron James card top $1 million for the first time since 2022, and a record-setting $860,000 sale of a Victor Wembanyama card.

➨ TAKEAWAY: Similar to the James card, the Clemente card hadn’t topped $1 million since 2022, and these results are a promising sign that the high-end card market is on the way back up after a rough few years. The Wembanyama card set a new record even after news broke that the young French superstar will have his season cut short by injury, another bullish sign for the market.

In the newest episode of Smart Humans, Vincent founder Slava Rubin talks with Argo co-founder Peter Grosskopf about why investors should look to alternatives to beat inflation and lessons from building a digital precious metals investment platform.

🤖 Alibaba’s AI investment: The Chinese e-commerce giant became the latest company to commit to a massive AI investment, saying it would spend at least $52 billion in the sector over the next three years.

🏡 Home sales fall: Existing home sales dropped by 4.9% in January but actually improved by 2% year-over-year, while the median sales price also rose by 4.8% year-over-year.

🪙 SEC dropping Coinbase lawsuit: In an expected but important move, the SEC is no longer pursuing the case against Coinbase for acting as an unregistered securities broker, another clear sign of the crypto-friendly posture of the new administration.

🎨 Riggio collection to be auctioned: The widow of Leonard Riggio, the Barnes & Noble founder, has chosen Christie’s to auction off close to 30 artworks with an estimated value of more than $250 million this spring. The collection includes works by Mondrian, Magritte, and Picasso.

🚀 Longevity tech unicorn: Function Health, a personalized lab testing startup, is raising a new round of funding at a $2.5 billion valuation, a huge increase over its $191 million valuation from last June.

🏈 Super Bowl ring sale: Former New York Giant Plaxico Burress auctioned off his Super Bowl XLII ring for $280,600, the second-highest sale of a Super Bowl ring in history.

Today: Sotheby’s 2025 NBA All-Star Game auction closes.

Tuesday: S&P Case-Shiller home price index and FHFA house price index released.

Wednesday: Chipmaker Nvidia will announce its 2024 Q4 earnings; Amazon is releasing an AI upgrade to Alexa; Sotheby’s Contemporary Curated auction, featuring works from Jean-Michel Basquiat, George Condo, and Joan Mitchell.

Friday: Personal Consumption Expenditures (PCE) and Core PCE indices, the Fed’s preferred inflation metrics, will be released.