Bitcoin

Dogecoin

Day traders have gone on a buying spree, flocking to assets linked to Elon Musk following Trump’s election win. The assets on their list include stocks and extremely volatile cryptos such as Dogecoin and MAGA-themed memecoins.
Elon Musk has always had a great influence over the crypto market, having caused dramatic price swings with simple tweets in the past. More recently, he became one of Trump’s biggest supporters and a key figure toward the end of the former president’s campaign.
Following Trump’s victory earlier this month, Elon’s companies have been big winners, recording massive booms in the trading market. Now, day traders have started to tap into assets linked to him and his companies—stocks and cryptos.
<h3 id="traders-are-using-dxyz-to-get-into-spacex">Traders are using DXYZ to get into SpaceX</h3>
The Destiny Tech100 ETF gives traders a chance to gain exposure to Elon Musk’s SpaceX stocks. SpaceX is an otherwise difficult asset to invest in as its shares don’t trade on the stock exchange. However, the ETF holds a significant stake in the firm, which makes up 38% of its assets according to its filing. It also has significant holdings in OpenAI, Stripe, and Discord.
The ETF fund has high management fees of around 2.5%, and there’s significant risk in holding shares of non-public companies. Somehow, these investors have found the opportunities good enough to overlook the risks.
In the words of Bloomberg’s ETF analyst James Seyffart, “The issue with DXYZ is that it’s a closed-end fund, which means there’s no mechanism to bring the share price in-line with the NAV like there is for ETFs. Compounding things for this particular fund is that it holds a lot of private assets like SpaceX, which don’t even have a publicly traded price or valuation.”
DXYZ differs significantly from traditional tech ETFs as it provides indirect access to private market gains that would otherwise require venture capital access.
The surge in the value of the ETF has set a new record for the fund. It is currently valued at over $400 million, the highest it’s been since April. More impressively, it is trading at almost 10 times its NAV.
The fund has been extremely volatile since its launch, and while it is experiencing an impressive run, the surge is majorly a direct result of the post-election craze.
<h3 id="day-traders-and-musk-cashing-in-on-post-election-frenzy">Day traders and Musk cashing in on post-election frenzy</h3>
Elon Musk’s endorsement of Trump has been a master stroke by the world’s richest man. Since his aggressive backing of the former president, his assets have recorded dramatic surges in the market.
Before the election, Elon’s tweets and presence at rallies sent traders into a frenzy, increasing asset shares by 64% and then by another 38%. Memecoins like Dogecoin also benefited from the buying craze, gaining nearly 20%.
Tesla, Musk’s only publicly traded asset, also recorded a historic rise, reaching over $1 trillion in market value last week after barely charting through the first four months of the year. His companies seem to thrive off chaos. The first time Tesla reached such a high market value was also due to a trading frenzy back in 2021.
This time, day traders have gotten in on the action with the Destiny Tech100 ETF (DXYZ), a controversial closed-end fund launched earlier this year, which has recorded a massive 280% surge following the elections according to Bloomberg’s report.
📰 More News: https://www.topcrypton.com
#ElonMusk

Day traders riding the Musk effect in election aftermath

Table of Contents

TopCryptoNews

Other articles published on Nov 13, 2024

Join our free newsletter for daily crypto updates!