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Yahoo
5 hours ago
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Does Solana Need Its Own Michael Saylor and Strategy?
Does Solana Need Its Own Michael Saylor and Strategy? originally appeared on TheStreet. For the last five years, Michael Saylor has been synonymous with one of the boldest Bitcoin bets in financial history — transforming MicroStrategy into a proxy Bitcoin ETF before one even existed. Now, a new playbook is being written and this time, it's not Bitcoin that's the focus — it's Solana. 'There are so many institutional investors who prefer equities,' said Matt Sigel, Head of Digital Asset Research at VanEck. 'A big part of it is the governance and disclosure is standardized… those securities can fit right alongside a typical equity portfolio.' VanEck has been leading the charge on the institutional front, filing for the first Solana ETF in June last year and continuing to await updates as the U.S. gears up for what could be a post-Gensler regulatory reset. But before that milestone, there's a race underway in the public markets — one that mirrors the early days of Bitcoin's treasury strategy boom. At the center of it is DeFi Dev Corp, a company modeled loosely after MicroStrategy, but with its own twist. 'We kind of think of it as the MicroStrategy 2.0,' said Parker White, COO of DeFi Dev Corp. 'Because Solana is a native yield asset and it's this kind of fuel inside of this whole DeFi ecosystem, there's a bunch of things that you can do with Solana… to generate extra yield as opposed to Bitcoin, which… kind of sits in a vault.' White says the goal is simple: 'We believe we can stack SOL faster than any other entity on the planet.' But expectations are high. According to Sigel, 'MicroStrategy famously trades at about 100% premium to the value of its Bitcoin. There's three Solana treasury companies more or less. They're trading at 4- to 6-times the value of their Solana.' That has since come down a bit as Solana's price has retreated the past few weeks. But nonetheless, that kind of market premium reflects a growing appetite for exposure — not just to Solana as a token, but to the broader thesis that it might become the winning Layer-1 blockchain in a crowded field. 'We think the most likely scenario is that most of the economic activity on open source blockchains will consolidate into one or a small handful of Layer-1s,' Sigel said. 'We think [Solana] has the best shot of becoming that leading blockchain.' Part of that optimism comes from real technical performance. But another part is just plain memetics. Sigel predicted late last year that Solana could surpass $500 per coin in 2025. 'How strong is the culture [and] meme-ability?' Sigel asked rhetorically. 'It's really validating to the thesis to have now three public companies that have committed to that treasury strategy.' That said, it is still early — both in Solana's life cycle and in DeFi Dev Corp's. The company's job now, as White sees it, is to get traditional investors off zero. 'People ask, 'Hey, what are you guys doing?' [We say] 'Hey, we're the best way to accumulate Solana.' And they're like, 'Cool, what's Solana?'' While Bitcoin had to battle skepticism in its early days, Solana now benefits from having a clearer financial playbook to follow — but it also comes with unique challenges. For one, ETFs tied to staked assets raise fresh tax and regulatory questions. 'There's still some operational details around how to manage a staked Solana ETF that we don't have answers to,' Sigel noted. 'Unfortunately, that information needs to come from the IRS… staking and undertaking the Solana that would theoretically be inside of one of these ETFs… that's a form of active management that we think can blow up the tax status.' But even with that uncertainty, Sigel sees the writing on the wall. 'Once that happens, all of the U.S.-based broker-dealers will be touching these assets directly… and I think the biggest impact will be in the derivatives market.' In Sigel view, Solana doesn't necessarily need a Saylor — but it needs someone who understands risk, timing, and volatility. 'Most crypto bull markets kind of end in a blow-off leverage top. There's no balance sheets right now that are really providing that,' he said, noting that traditional finance could step in to fill the vacuum left by collapsed crypto lenders like BlockFi and Celsius. Still, White isn't putting a stake in the ground like Saylor did with his pledge to 'never sell' his Bitcoin. 'I wouldn't put a guidepost on the other side and guarantee that we'll sell" White said. 'But if [our stock] gets deep enough [into a discount], I think we'd have to take a pretty serious look at returning value to shareholders. It could be in the form of buybacks, it could also be… a SOL-denominated dividend.' The one thing he's certain of? Survival matters more than hype. 'The winners in this model will not be determined in the bull market,' White said. 'They will be determined in the bear market… you want to look at a team that's going to be around for the long haul.' Does Solana Need Its Own Michael Saylor and Strategy? first appeared on TheStreet on Jun 9, 2025 This story was originally reported by TheStreet on Jun 9, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Does Gold Still Make Sense After Hitting All-Time Highs?
Gold has even the most seasoned market watchers in awe. Even after a pullback in May, the yellow metal gained around 25% so far this year, and hit an all-time, inflation-adjusted high of $3,500 an ounce in April. The rally enthralled Imaru Casanova, a portfolio manager at VanEck, who has covered the gold industry for 20 years. 'I have to be honest, even for me, the rally this year was surprisingly fast,' she said. 'We don't see gold going from under $3,000 to $3,500 in a few months. That's, sort of, almost violent.' The impressive runup has spurred questions about whether gold is still a feasible portfolio insurance policy at these higher levels. Advisors who are looking at the precious metal need to decide its role in clients' portfolios, whether it is a safe haven or a return driver, and that will determine whether current valuations make it too late to buy. READ ALSO: There's Almost 600K More Millionaires. That's Not Necessarily a Good Thing and Goldman, Morgan Stanley, JPMorgan Layoffs to Hit Northeast The rally's velocity is at odds with gold's historical track record. Since 1971, when the USgold standard was abandoned, the metal's price in US dollars increased by an annualized 8% through 2024, according to industry group World Gold Council. Over that same time, the S&P 500's annualized return, with dividends reinvested, was 10.7%. Gold's return over the past 20 years is 9.3% and the S&P 500's is 10.4%. Gold pays no dividends and has no yield, so its gain is price return. Central bank buying has underpinned gold's value in recent years, but the first quarter of 2025 saw a surge in investment demand from exchange-traded funds and similar products after a few years of little interest, which helps explain this year's rally. World Gold Council data showed ETF purchases were equal to 226.5 metric tons, nearly as much as the 243.7 tons central banks bought, and helped gold demand rise 16% year-over-year. Joseph Cavatoni, Americas senior market strategist for the World Gold Council, points out that except for gold used in jewelry, demand increased from investors, central banks and industrial users (usually in technology). 'These use cases are all showing the right kinds of signs to give us confidence for what's happening in the market today,' he said. Cavatoni said despite gold's high valuations, it remains a safe haven investment, noting systemic moments in the market are becoming more frequent and that gold holds its value and remains liquid when investors need cash. VanEck's Casanova said despite the rally, investor demand for gold is below its 2020 peak, so there is room for further upside if investors feel the need to own gold. Given the likely US macroeconomic policy uncertainty in the near- to medium-term, she said gold still has a role as an insurance policy in portfolios. She believes it's the best reason to own gold, even though research shows that gold can enhance risk-adjusted returns and offers portfolio diversification. 'This year is a perfect example, you know, that when it needs to come to your rescue sort of thing, it does,' she said. She doesn't recommend tactical use. 'I cannot say this enough. I've been covering the sector for 20 years, and I cannot time the sector,' she said. A Golden Goose? The high prices have made some gold buyers cautious. Peter Thomas, chairman of offshore development at precious metals broker Ausecure and a physical gold dealer since the late 1970s, also wrestles with the idea of owning gold at these levels, and he cautions that volatility will likely be greater. 'When you have new heights and higher prices, it gets choppy. Swings will be wider,' he said. Valuations should be a concern as well. Campbell Harvey, director of research at Research Affiliates and a professor at Duke University's Fuqua School of Business, has studied gold's historical price action. He said when inflation-adjusted, or 'real,' gold prices are high, gold returns over the next 10 years are low. Using consumer price index inflation measurements, it took gold 45 years to take out the inflation-adjusted all-time high of $850 an ounce set in January 1980. That occurred when the metal peaked at $3,500 in April. Edison Byzyka, chief investment officer at Credent Wealth Management, said he is not looking to add gold to client portfolios. 'I think adding to gold right now is an indirect way of saying Treasury yields are going to go back up north of 5%. It's a way of saying the U.S. dollar is on its way to its demise. It's a way of saying that the global economy is going to be worse off than it was in the global financial crisis,' Byzyka said. Gold as a hedge for stocks hasn't always panned out, he adds. Using gold in lieu of bond exposure has worked this year, but he's concerned about the portfolio impact if gold's gains reverse. 'The downside a fixed-income investor would experience is something would be catastrophic to what they would expect in a bond portfolio,' he said. John Koch, chief investment officer at iSectors, said the firm has offered clients different ways to own gold, either as part of a strategic precious metals allocation with gold, silver, platinum and palladium; within its broad liquid alternatives model as an inflation hedge; or in a quantitative dynamic model, allowing an algorithm to choose the allocation to gold as part of a multi-asset sector rotation. His firm views gold as a portfolio diversifier because of its low correlation to other assets. In the strategic or inflation hedge models, the allocation can be between 5% to 10% as a long-term holding, although the quant model has been holding gold at a 30% allocation for the past two years. Steve Conners, president of Conners Wealth Management, started adding gold to clients' portfolios in fall 2024 and he thinks owning either gold ETFs or gold mining companies is still attractive at current prices. Conners considers the pullback healthy. He said with the US dollar remaining unstable because of the uncertainty over the Trump administration's tariffs and the potential impact on the economy, owning gold still makes sense. Plus gold continues to be an attractive hedge against future inflation, which he thinks is still a concern. 'I have no intentions of reducing or paring back; if anything, I'll add,' he said. 'OK, if [gold prices] can pull back a little bit more, I would prefer it.' This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
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VanEck, 21Shares urge SEC to restore crypto ETPs 'first-to-file' rule
VanEck, 21Shares urge SEC to restore crypto ETPs 'first-to-file' rule originally appeared on TheStreet. VanEck, 21Shares, and Canary Capital wrote a joint letter addressed to U.S. Securities and Exchange Commission Chairman Paul Atkins, in which they urged the SEC to revert to its "first-to-file" standard for issuing exchange-traded products (ETPs). The companies contend that the recent change, which allows simultaneous approvals for crypto ETFs, including Bitcoin and Ethereum spot funds, has disrupted fairness, stifled innovation, and benefited large incumbents. The letter cites examples, such as the ProShares Bitcoin Futures ETF, which was granted a three-day head start in 2021 and rapidly captured nearly 90% of the market share. In January 2024, the SEC simultaneously approved several "spot Bitcoin ETFs," even though a few companies had previously filed their applications several years prior, according to the Prosecutor. The pattern has been similar to the ETF applications of Ethereum, they point out. The companies also warn that abandoning the first-to-file concept works against small and mid-sized issuers by watering down the advantages of the first mover and stifling innovation. Instead, they incentivize big players to wait and free ride, ultimately resulting in market concentration. They say that it's bad for investor choice, the efficiency of the market, and the entrepreneurial spirit that built the $15.4 trillion exchange-traded products industry. The letter also addresses concerns about administrative burden, indicating that fair, date-based filing rules would not only remain administratively manageable but also maintain a competitive equilibrium. They also caution that continued delays, particularly for new ETF sectors like Solana, could hinder innovation if the Commission continues to disregard the filing order. VanEck, 21Shares urge SEC to restore crypto ETPs 'first-to-file' rule first appeared on TheStreet on Jun 6, 2025 This story was originally reported by TheStreet on Jun 6, 2025, where it first appeared. Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
Looking For Exposure to Walmart Stock (WMT)? Try These Two ETFs
Walmart (WMT) is set for continued growth despite facing pressure from President Trump's tariffs policy and consumer uncertainty. It has wide coverage both in the U.S. and abroad particularly Canada, Mexico and India, a strong supply chain and loyal customers. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Its bulk purchasing power, efficient operations, and understanding of its customers' financial needs help maintain value prices. Other strengths include its digital growth and general merchandise appeal such as fashion. On May 15, WMT announced its first-quarter results, highlighting a revenue growth of 2.5% and an operating income increase of 4.3%. The company reported a 22% rise in global e-commerce sales and issued guidance for the second quarter with expected net sales growth of 3.5% to 4.5%. Investors looking for exposure to WMT stock may consider investing in these two ETFs: Vanguard Consumer Staples (VDC) and the VanEck Retail ETF (RTH). Let's take a closer look at these two ETFs. VanEck Retail ETF The RTH ETF zeroes in on the consumer discretionary category, featuring a diverse portfolio of retail giants that are shaping the future of shopping and consumer behavior. These companies are often at the forefront of technological adoption and customer experience enhancement. It seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS US Listed Retail 25 Index. WMT stock constitutes 9.42% of the ETF's holdings. Apart from WMT, some of the top holdings in the ETF include Amazon (AMZN), Costco (COST) and Home Depot (HD). Overall, the ETF has $240.83 million assets under management (AUM) and an expense ratio of 0.35%. Year-to-date, the RTH ETF has generated a return of 4.76%. On TipRanks, RTH has a Strong Buy consensus rating based on 24 Buy and 2 Holds. Its consensus price target is $265.07 implying an 12.90% upside potential. Vanguard Consumer Staples ETF The VDC ETF tracks the performance of large-cap consumer staples companies, such as food, beverage, household goods, and retail giants. These firms tend to be less volatile and maintain consistent demand, even during economic downturns. WMT stock constitutes 12.31% of the ETF's holdings. Apart from WMT, some of the top stocks in the VDC ETF are Procter & Gamble (PG), Coca-Cola (KO) and Mondelez International (MDLZ). Overall, the ETF has $7.68 billion in assets under management. Also, it has an expense ratio of 0.09%. The VDC ETF has returned 6.82% so far this year. Turning to Wall Street, the ETF has a Moderate Buy consensus rating based on 58 Buy, 44 Hold and 2 Sell ratings. Its consensus price target is $240.56 implying an 7.73% upside potential. Concluding Thoughts ETFs provide indirect exposure to WMT, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider RTH and VDC, as these ETFs offer exposure to Walmart stock.
Yahoo
3 days ago
- Business
- Yahoo
Gold-Mining ETFs Losing Their Shine Following Torrid 2025 Rally
(Bloomberg) -- Investors are exiting exchange-traded funds that track the shares of gold-mining companies, a sign that the high-flying sector's allure may be dimming even as prices for the precious metal remain strong. Next Stop: Rancho Cucamonga! ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Where Public Transit Systems Are Bouncing Back Around the World US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn The Global Struggle to Build Safer Cars Gold-mining stocks have soared this year, outpacing the 24% climb in gold prices and leaving the broader S&P 500 Index in the dust as investors sought haven assets amid worries over global trade and massive government spending. The VanEck Gold Miners ETF, the largest exchange-traded fund tracking the group, is up 57% year to date. That performance hasn't stopped investors from heading for the exits in recent months. Van Eck's fund has seen net outflows every month so far this year, except for May. Others are feeling similar selling pressure: The Sprott Gold Miners ETF saw outflows in May even as bullion prices set a record high. 'People are actually selling their shares of gold-mining ETFs into the rally,' said John Ciampaglia, CEO and senior managing director at Sprott Asset Management LP. 'We're not seeing new money, as a whole, come into the sector.' A range of factors is fueling the outflows. Years of budget overspending by gold-mining companies have made investors wary of holding their shares for too long, even though some miners have grown more disciplined on expenditures, said Greg Taylor, chief investment officer at PenderFund Capital Management Ltd. 'Most people view it as a trading sector rather than a buy-and-hold sector,' he said. The furious rise in mining shares may have also left traders seeking gains in other corners of the market, such as tech stocks and bitcoin, Taylor added. The tech-heavy Nasdaq 100 Index is up 10% since the end of April, compared to an 8.4% rally in the Van Eck ETF. BofA Securities analysts urged investors to 'buy oil, not gold' in a May 29 research note, saying the two asset classes 'are trading at polar ends of the relative value spectrum.' The bank noted that the S&P 500 is trading at its highest multiple relative to the price of West Texas Intermediate crude since the pandemic, making a good entry point for oil, while trading in-line with its historical average multiple relative to gold. Central Banks Still, proponents of precious metals have been quick to point out the sector's more attractive features. Among these is how the shares are valued relative to companies' earnings: despite their recent rally, mining stocks are relatively cheap on a historical basis, as the rising gold price has juiced profits. Shares of Newmont Corp., the biggest miner by market capitalization, trade at 13 times future earnings, compared to an average of 20 over the last five years. Scotia Capital Inc. analyst Ovais Habib wrote in a Thursday note that gold-mining stocks are trading as if their total gold resources are valued at $1,454 per ounce, well bellow the spot gold price, which stood at $3,380 an ounce on Thursday afternoon. Brooke Thackray, a research analyst at Global X, said lower input costs in the form of cheaper oil and diesel prices can help miners' returns in coming quarters by boosting cash flow. Another supportive factor is steady gold buying by central banks, which some analysts expect to continue pushing gold prices higher and buoy miners' shares. Central banks have been buying 80 metric tons of gold each month, analysts at Goldman Sachs estimate. Taken together, central banks and sovereign wealth funds have been mopping up 1,000 tons a year, at least a quarter of annual mined production, according the World Gold Council. 'They've been in the market and they're really price-indiscriminate,' Thackray said. Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling ©2025 Bloomberg L.P. Sign in to access your portfolio
