Alternative Investing Report - September 16, 2024

_{*as of 9/15}

In August, average US home value rose 2.5% year-over-year according to Zillow and 3.1% year-over-year according to Redfin, the lowest numbers of 2024 thus far. Home values fell in 37 of the top 50 metro areas, with the biggest drops coming in San Francisco, San Jose and Austin, and biggest gains coming in Buffalo, New York City, and Providence.

➨ TAKEAWAY: With price growth flattening and mortgage rates falling, there are more opportunities for buyers in today’s market. While prices may not be growing, neither are home sizes, as the median home became 6% smaller over the past five years. The market may be tilting back towards buyers, but for investors it’s important to evaluate exactly which properties are being bought and sold.

Since Ethereum ETFs were introduced in late July, the price has declined by more than 30% and recently dipped below $2,300, its lowest mark since January. Its performance lagged behind other major cryptocurrencies like Bitcoin and Solana, and has driven Bitcoin’s share of the crypto market up to 57%, its highest level since April 2021.

➨ TAKEAWAY: Many thought that the introduction of Ethereum ETFs would lead to a price gain, but it appears that the run-up in price happened in anticipation of their debut. Coinbase’s research hypothesizes that the ETH token needs a catalyst or narrative change to reverse the current price action, such as the launch of applications on-chain with broader public appeal.

🚀 Eight new unicorns: August saw eight new startups reach a valuation of more than $1 billion, led by smart car company Yinwang Smart Technology which was valued at $16 billion. Six of the eight companies are U.S.-based and four of those are AI-related startups.

🚘 Christie’s + cars: The auction giant acquired Gooding & Company, an auction house that specializes in collector cars, as it attempts to diversify its offerings with the art market in a slump.

🏢 CRE sales up: In Q2, commercial real estate sales volume increased year-over-year for the first time since 2022, and lending volume also rose, indicating that the market may have hit bottom and could be on the way up.

📖 Shem Tov Bible: The 14th century manuscript sold at Sotheby’s for $6.9 million last week, at the high end of its pre-sale estimate, and the buyers intend to display it publicly.

🪙 Bitcoin tax fraud: A Texas resident is facing three years in jail for underreporting the capital gains earned from selling $3.7 million worth of Bitcoin, and the Department of Justice reiterated that everyone must report their crypto gains.

🦸‍♂️ Fantastic Four #1: One of the highest-graded copies of Fantastic Four #1 sold for $2.04 million, setting a new record for the issue as anticipation for the upcoming movie continues to grow.

Today: Former President Trump is expected to announce the debut of World Liberty Financial, a new crypto platform.

Tuesday: Christie’s Japanese and Korean Art auction, featuring a print of Hokusai’s “Great Wave”; Homebuilder confidence index.

Wednesday: The highly-anticipated Federal Reserve meeting, in which a rate cut is expected to be announced; The world’s largest crypto event, Token 2049, kicks off in Singapore.

Thursday: Existing home sales; Fanatics Collect Premier Auction.

Friday: Sotheby’s Handbags & Accessories auction.