Well, looks like it’s that time of the year again for $COIN, $HOOD, $CRCL and co.
So much for a “friendly administration” and “strategic reserve” if they’re trying to ram through Bank Lobbied Clarity Act bills…
To ban any form of innovation or competition against banks, with things like yields.
And nuking liquidity as they go (but strengthens the USD)
Valuations do seem compelling again if you’re swing trading.
Rule changes for the SpaceX $SPCX IPO:
Index providers waived the profitability requirement and cut the seasoning window from 90 days to 5.
This forces over $30 trillion in passive 401k and retirement money to buy SpaceX at IPO valuations.
Bloomberg Intelligence estimates S&P 500 funds must absorb 19% of SpaceX's float within 6 months.
Russell 1000 and Nasdaq 100 funds will absorb 24%.
The rules built to protect passive investors:
1. S&P 500 has required 12 months of trading and 4 quarters of GAAP profitability since 2002. Both waived.
2. Nasdaq cut its inclusion window from 90 trading days to 15.
3. FTSE Russell cut its to 5.
All three benchmarks are now structured to buy SpaceX at IPO pricing.