Morning Minute | Fidelity Recommends Crypto in Balanced Portfolio

Morning Minute | Fidelity Recommends Crypto in Balanced Portfolio

TylerD's Market Summary

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๐Ÿš€ Fidelity Recommends 1-3% Crypto Allocation

Bitcoin is booming, passing $59,000 this morning.

The rest of crypto is following suit, with the entire board washed in green almost daily at this point.

And Fidelity has seen enough, they want their clients diving in.

What Happened?

Yesterday news surfaced that Fidelity ($4.5T AUM) had updated their portfolio allocations for their "Fidelity All-in-One ETFs" product.

They offer 4 different ETFs in this product, with crypto allocations ranging from 1% to 3%.

They point to "strategic exposure to crypto...for added diversification" and they elaborate on their investment thesis with this point:

"Keeping a small allocation to crypto in your portfolio can give you the potential for higher returns and serve as a hedge against traditional markets."

Higher returns, tradfi hedge.

Yep, checks out.

Why It Matters

The ETFs were just the starting point for institutional and mainstream crypto adoption.

Many still can't invest in crypto via their 401k's (I personally can't with Vanguard).

And most banks still aren't providing much access to crypto investment vehicles (though they are rallying for regulation changes to make this easier).

So we're still early.

More institutions and more retail are coming, it's just a matter of time. And the higher the prices go, the more they'll want it.

๐ŸŽ Airdrop SZN Kicks Into Overdrive

Only 1 primary theme seem to matter in the ETH NFT market right.

Airdrops to NFT holders (and what founders are doing to source them).

Pudgy's paved the way here, lining up DYM and rumors of Layer Zero and other major protocols.

Creepz notably got large $PORTAL allocations.

And now with Blast Spring about to begin tomorrow, dozens of protocols are preparing to announce points drops to NFT holders.

What Happened?

Just yesterday we saw at least 4 headlines of projects giving tokens or points to NFT holders (from Thruster, Juice Finance, Codechain and Mocaverse - more details in the Points section below).

Most of the top NFT weekly movers from last week were projects with known airdrops or expected ones coming (Creepz, Kanpai, Wassies, Sappy Seals and now rektguy).

This is the dominant force on ETH right now.

Short-Term and Long-Term Impact

There are certainly pros and cons to this meta.

Notable NFT trader and alpha group founder Tre weighed in, stating:

"For the next several months, the best performing NFT PFP projects will simply come down to who gets the best + most token/pt allocations for airdrops."

He's right. Regardless of your feelings on this meta and if it makes sense, this is where the action will be.

Savvy traders need to adjust.

Now, there is downside to this meta in the mid-to-long term.

These recent buyers don't want these NFTs.

They want points/airdrops.

And they will exit:

  1. once they get them or
  2. if it seems the airdrops aren't worth the holding cost

This is a bubble. Understand that.

If you're trading it, make sure to get out before it pops. 

The real signal will be the first few airdrops. If they out-perform, the bubble will get much bigger.

If the early airdrops and point allocations are light for some of these NFTs, expect a pull back.

One thing is certain - this is going to be a fun experiment to watch.

๐Ÿšš What else is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

  • Ethereum led NFT trading volume with $23.9M on the day; BTC was next with $10.8M and then Solana with $8.2M
  • New mint Khuga led notable top movers on ETH, jumping 290% to 0.08 ETH; rektguy, PX Quest, Parallel Avatars, Sprotos, Yogapetz & Kubz all jumped 20-35%
  • ApeCoin DAO announced an AIP for a potential partnership with an F1 team
  • Wasabi announced a partnership with MetaStreet, allowing usage of LCTs in its protocol (and a potential 9x points farm)
  • NodeMonkes led action on BTC tallying 28 BTC though volume was down significantly across the board with the BTC pump
  • Nodes held at 0.39 BTC floor, Bitcoin Puppets at 0.159, RSIC at 0.086, Quantum Cats at 0.275, and Nat Cats around 0.07 BTC floor
  • A 24 BTC sale on a Bitcoin Budgie (Inscription #2) shocked the Ordinals market, with the overall Budgie floor at 0.155 BTC (42 supply)
  • Solana NFTs were mixed on the day; Frogana -7% to 3.9 SOL leading volume, Tensorians +3% to 64, Mad Lads +2% to 188; Mutantmon's were the notable winner, +36% to 3.85 SOL

๐Ÿ’ฐ Token, Airdrop & Points Tracker

Catch up on major token & airdrop news from the day:

๐ŸŒŽ Around Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

๐Ÿš€ NFT Total Volume (ETH)

  • BAYC (770 ETH, 22.83 ETH Floor)
  • Pudgy Penguins (767 ETH, 19.37 ETH)
  • Milady (770 ETH, 3.48 ETH)
  • MAYC (616 ETH, 4.03 ETH)
  • Moonbirds (414 ETH, 1.36 ETH)

๐Ÿ“ˆ NFT Floor Price Increase (ETH)

  • Khuga (290%, 0.08 ETH Floor)
  • vVv Season 1 (114%, 0.62 ETH)
  • Lo-Fi Pepe (70%, 0.09 ETH)
  • Rektguy (34%, 0.9 ETH)
  • Parallel Avatars (26%, 1.09 ETH)

๐Ÿ—“ Upcoming NFT Mints and Reveals

Today is a slower day of drops spanning memes, art, and sports.

La Liga is doing a gaming drop on Arbitrum, with 3,500 NFTs priced at 0.039 ETH for their "Next-Gen Fantasy Sports Game."

And Art Blocks Curated is back with artist Emi Kusano doing a 90s anime-themed drop of 300 NFTs (in standard Dutch auction format).

See the full list and dive in for more details with Swizzy's daily mint monitor

  • Ed Balloon - Business Deals in the Hills (10:00 a.m. ET)
  • Memes by 6529 (11:00 a.m. ET)
  • La Liga - Game On (12:00 p.m. ET)
  • Art Blocks Curated - Melancholic Magical Maiden (1:00 p.m. ET)

Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email tyler.warner@luckytrader.com.

Disclaimer: The author or members of the Lucky Trader staff may own NFTs discussed in this post. Furthermore, the information contained on this website or the Lucky Trader mobile application is not intended as, and shall not be understood or construed as financial advice. AI may have assisted in the creation of this content.