Alternative Investing Report - August 8, 2025

*as of 8/7; Sources: S&P, BTC, FTSE, DJRE, 30YM

In a highly anticipated move, President Trump signed an executive order yesterday that could pave the way for alternative assets to be included in retirement accounts such as 401(k)s in the near future. The order instructs the Department of Labor and other federal regulators to clarify and revise regulations to allow defined-contribution retirement plans to invest into private market assets, which have historically only been available to institutional and high net-worth investors. The crypto markets reacted positively to the news, with Bitcoin rising 2%, and Ethereum, XRP, and Solana also posting solid gains.

➨ TAKEAWAY: This does not mean that crypto is coming to your retirement account tomorrow, but it does mean that it could be allowed soon. This executive order should give retail investors the opportunity to put asset classes like crypto, real estate, and private credit into their retirement accounts, leading to higher potential returns and more diversified portfolios. Major asset managers like BlackRock and Apollo are already targeting 2026 launch dates for new 401(k) funds that will include private market allocations. Investors should be aware that once the floodgates open, there will be a lot of different products available, some of which could have high fees, limited transparency, and most likely, a lack of liquidity.

Another successful IPO launched yesterday, with Firefly Aerospace (Nasdaq: FLY) seeing its shares pop by 34%, ending the day at $60.35 per share, putting the company’s market cap at $8.5 billion. The space tech startup had originally planned to sell 16.2 million shares between $41 and $43 per share but ended up selling 19.3 million shares at $45 per share, raising $868.3 million. In March, Firefly became the first private company to ever conduct a successful moon landing, raising the company’s profile.

➨ TAKEAWAY: This is the third major IPO for a space tech company this year, following Karman (+50.7% since its February IPO) and Voyager (-35.6% since its June IPO). The sector is one of the hottest in venture capital, with the current most valuable startup in the world, SpaceX, leading the way. Firefly’s successful public offering comes a week after Figma’s high profile IPO, and it certainly seems like the IPO window is finally opening back up.

🤖 OpenAI releases ChatGPT-5: On the heels of a report that the AI startup is seeking a $500 billion valuation, it released its newest update to its ChatGPT model, which received mostly positive reviews, particularly for its coding abilities.

🚀 Defense tech stays hot: VC investment in the sector reaching $19.1 billion in Q2, a 200% year-over-year gain, and 2025 is on track to set a new all-time record for funding. Anduril’s $2.5 billion June raise was the biggest for any startup in Q2, and Amca’s $77 million seed stage raise was one of the biggest early-stage raises of the quarter.

🎬 Goldin entertainment auction: Goldin’s first movie memorabilia auction saw mixed results, as its Indiana Jones whip did not meet the reserve price, but a wand from Harry Potter fetched $189,385, and a pair of Superman props also saw big results.

🏡 Home purchaser sentiment improves: The Fannie Mae Home Purchase Sentiment Index rose from 69.8 to 71.8 in July, as mortgage rates ticked down, and housing inventory continued to rise.

🏢 Casual dining slumps: Property sale success rates in the sector have fallen from 72% in 2021 to just 37% in 2024, as many chains have closed stores or filed for bankruptcy, and the building footprints are too large for fast casual and fast food chains.

🎨 Samia Halaby’s market: The Palestinian American artist has had eight of her top ten auction results over the past three years, and had her first U.S. museum survey last year, as both market and institutional attention continues to rise.

Monday: 📊 Jobs report, 🎵 Music royalties
Tuesday: ⚾ National recap
Wednesday: 💵 Fundraising troubles, 📈 Q1 fund returns
Thursday: 🏡 Hot and cold metros, 🚀 VC rollups

Have a great weekend!