For the first time since spot bitcoin ETFs were launched, Grayscale’s Bitcoin Trust ETF () saw a daily net inflow on Friday (of $63 million)…  Source: Bloomberg GBTC has dominated the outflows since inception (adding up to around $17.5 billion) since the 11 spot ETFs were launched on Jan 11. The inflow coincided with a sudden surge in aggregate net inflows to ETFs overall of $378 million on Friday (which came two days after a record net outflow of $563 million)…  Source: Bloomberg   that pseudonymous crypto investor DivXman told his followers that the GBTC was the “primary source” of sell pressure across all spot Bitcoin ETFs, but “the tides” could be turning.   “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create,” he explained to his 20,800 X followers in a May 3 post. Crypto trader Jelle predicted to his 80,300 X followers on the same day that Bitcoin’s new all-time high is on the horizon.  “60 million dollars worth of inflows for Grayscale’s ETF. The halving chop will come to an end, and 6-figure Bitcoin will follow shortly after.” Bitcoin’s price responded to this sudden inflow surprise and rallied back above $64,000, erasing the outflow-driven plunge from last week…  Source: Bloomberg This price rise corresponded to a big short liquidation in the past 24 hours…    that bitcoin whale entity nicknamed “Mr. 100” has bought the Bitcoin dip for the first time since […]

Image Source: The U.S. Department of Energy has banning fossil fuels from new and renovated federal buildings. The Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings Rule, mandated by the Energy Independence and Security Act (EISA) of 2007, mandates a phased reduction in fossil fuel usage in these buildings. The law requires federal buildings and major renovations to phase out fossil fuel-generated energy consumption by 2030. This provision had been pending due to regulatory delays until now.Energy Secretary Jennifer Granholm highlighted the significance of this rule, emphasizing the federal government’s commitment to energy efficiency and cost savings: “The Biden-Harris Administration is practicing what we preach. Just as we are helping households and businesses across the nation save money by saving energy, we are doing the same in our own federal buildings.”With commercial and residential buildings contributing 13% of direct greenhouse gas emissions in 2022, primarily from burning natural gas, the focus has shifted towards electrification. This entails transitioning from gas to cleaner electricity sources like wind and solar power.Given the absence of regulations enforcing the removal of gas-fired appliances, some federal buildings continue to install them. For instance, Independence Hall in Philadelphia plans to switch to gas-fired boilers instead of remaining connected to a city-wide steam loop for heating.While projects that are already underway, like Independence Hall, are exempt from the new rule, its implementation aims to accelerate the electrification of federal sites as envisioned in EISA’s Section 433. Advocated by the American Institute of Architects […]

The price of WTI Crude Oil went from running into headwinds and lingering within the upper realms of its three month price chart to falling below important support levels rather quickly last week.   As the price of WTI Crude Oil opens this week it will be near the 77.930 USD ratios, which had last been traded in a meaningful manner on the 13th of March. WTI Crude Oil which has been flirting with higher prices and testing resistance on a fairly regular basis a bit over the past month suddenly found selling pressure build. When the 82.000 price level was penetrated lower on Tuesday, momentum didn’t slow down and the 81.000 target began to come into sight and by Wednesday this level was brushed aside too.   Wednesday’s trading in WTI Crude Oil saw a fall from slightly above 81.000 to the 79.000 mark emerge. And downside pressure was not finished yet, Thursday and Friday did produce slight reversals higher, but selling continued and the 80.000 price level looked further away as traders began to close their offices for the weekend. Supply Remains Abundant and WTI Crude Oil is TranquilWhile the media continues in many cases to shine a light on the Middle East conflict, experienced energy traders have proven they are tranquil and are paying attention to fundamentals which show Crude Oil remains abundant and no shortages are present.  While peace in our time has not been achieved, developments from the Middle East didn’t stir speculative fires this past week.The downturn in U.S GDP numbers […]

   In this episode, Mark Thornton discusses Consumer Confidence as a reliable indicator of the current economy. Individual components of the index are declining, but do not yet indicate a looming crisis or recession. Mark thinks that it does indicate, along with other economic statistics, of a clear worsening in the economy and his predictions for 2024. 

(Listen to this article: | Duration: 00:06:00 | Recorded on May 5, 2024)  I traveled through Indiana last week. A day and a half of meetings in and around Indianapolis were followed by a drive south for an afternoon at Churchill Downs in Kentucky. If you’re lucky enough to be invited to a Jockey Club hospitality suite, a good time is guaranteed. Tye Uppinghouse, our Catalyst Mutual Funds regional partner, was once again a gracious host. I concluded my trip in Miamisburg, OH.I always enjoy meeting our clients and prospects. America’s heartland is conservative and welcoming. The Hoosier state has yet to legalize medical marijuana, and one advisor I met predicted recreational use was at least a decade away.   Recent earnings news from pipeline companies has been positive. () raised their distribution by 5.1%, now 1.7X covered by distributable cash flow. Oneok () raised 2024 guidance due to strong volumes in natural gas and synergies from last year’s acquisition of Magellan. Earlier this year they announced a 3% dividend increase.A week ago, Targa Resources () raised their dividend by 50%.These three companies provided current evidence of the industry’s steady return of cash to shareholders. Payouts that yield around 6% are growing at 3-5%, providing a 9-11% total return. Share buybacks add another 1-2%. It’s a story that resonated strongly with many of the investors I met last week. Energy has been an overlooked sector for a long time despite strong performance. Morgan Stanley just reintroduced a 2% allocation to midstream […]

EIA  the U.S. Energy Information Agency has issued their estimate of U.S. Oil and Gas Reserves in 2022. It takes them time to obtain the information by survey and validate the information. It is not simple for oil and gas operators to know what their reserves are. In this article, I present the EIA report in its entirety with two additional EIA graphics. My comments as usual are in a box.       What are reserves and what are they not? Proven (same as proved) reserves are the amount of a natural resource that can be economically extracted at current prices with existing technology Aside from the accuracy of the estimate there are three other variables in the definition that allow for future changes in the estimate of the reserves: “known”, “existing technology” and “current prices”. Usually proved reserves are an underestimate but sometimes what is considered to be a proved reserve turns out not to be as the extraction process proceeds. Estimates are usually also made for probable reserves, possible reserves, yet-to-be-discovered reserves, and total recoverable reserves. Based on my experience, proven reserves are important in investment decisions. But the other categories are also considered. What you like to see is the gross addition to proved reserves each year being equal to or larger than the withdrawals for that year. If that stops happening, it is concerning. On the other hand, If prices increase or if there is an important advancement in technology that allows more of the […]