Congress Just Told Us the Next Industry to Watch

Jeff’s Note: A couple of hours ago, I went live alongside Porter Stansberry to reveal the national emergency happening under most people’s noses…

We shared the real reason behind Trump’s tariffs – and the unstoppable force quietly reshaping America’s entire economy… as well as five stocks that could soar as a result.

Plus, we offered the names of our two highest-conviction stocks that could surge next.

This broadcast was unlike anything I’ve ever presented in terms of scale… and long-term wealth potential. That’s why I want to make sure that you get a chance to watch it, even if you missed the initial airing.

This replay will only be online for a short time because an event in July could send the stocks we mentioned surging. Don’t wait. Watch here now.

Bitcoin was at $86,500 the last time I mentioned an impending catalyst.

Since then, the price has gone on to breach $110,000.

That’s an increase of more than 27% on a nearly $2 trillion asset. Just incredible. Bitcoin surged more than any of the Magnificent Seven, companies with similar market sizes (Nvidia, Apple, Google, Microsoft, Meta, Amazon, and Tesla).

The reason behind such a big move in such a short time is what we described as a twofold catalyst.

The first factor was whale accumulation. We had spotted the trend by tracking wallet moves onchain.

Here is the chart from the March 26 Bleeding Edge, “Crypto’s Next Catalyst Is Here.”

The chart highlighted that wallets designated as whales (i.e., larger holders) were showing signs of accumulation.

This tends to front-run any major breakout for Bitcoin and cryptocurrencies. We can see in the chart above that this same pattern unfolded in September 2024, just before Bitcoin made a 164% run. That move sparked the entire cryptocurrency market.

But here’s the thing…

That was just the first part of this catalyst. The second part hasn’t hit. It’s only just approaching…

And we’re beginning to see the early signs that it’s imminent.

The Pre-Bubble Simmering

Mainstream media tends to ignore early signs of major bull runs.

That’s because news related to these types of developments doesn’t tend to grab eyeballs unless the asset class is already minting fresh billionaires.

But if we look hard enough, we can see what can be best described as a battleship loaded with dry powder – representing a heap of capital. And it’s beginning to line itself up to the next major narrative to overwhelm the market.

The reason it’s a battleship is simple… Wall Street often takes time to put its pieces in place. It might seem slow-moving. But once all the pieces are aligned, it can unload massive sums of capital into whatever sector it has its sights set on.

That sector is digital assets. Let’s dive into what has been happening by looking at exchange-traded fund (ETF) flows and developments, initial public offerings (IPOs), mergers and acquisitions (M&A) activity, and regulatory activity.

ETFs

Inflows and outflows to and from ETFs act as a barometer for how much attention the crypto industry is receiving from outside investors. These flows represent new demand for each asset attached to the ETF.

We measure this capital flow by using the cumulative net flow. We take SEC filings at the end of each trading day to measure how much capital entered or left these ETFs. It’s cumulative because it increases or decreases a running total when it adds or subtracts the new day’s flows.

Since April, both Bitcoin and Ethereum ETFs have realized new highs in capital inflow.

Bitcoin ETFs have witnessed cumulative flows rise by almost $10 billion in a span of weeks. This is significant, as the total flow count now sits at just about $42 billion. These new flows represent almost 25% of the running total.

Ethereum’s ETFs are showing similar interest. Its cumulative flow has gone from just shy of $2.3 billion to more than $3.3 billion in the same time span. That’s almost a 48% uptick in just weeks.

This represents a renewed interest in the digital asset arena.

BlackRock’s Bitcoin spot fund (IBIT), for instance, has recently topped $70 billion in assets under management (AUM). Gold took five times longer to reach that figure. IBIT now looks poised to overtake the AUM of the largest gold ETF – SPDR Gold Shares (GLD) – which currently sits at $101 billion.

And what’s more, the sixth-largest digital asset by market cap, Solana (SOL), looks ready to earn its own spot ETF like Bitcoin and Ether. This represents Wall Street preparing a catchment to absorb this wave of capital.

IPOs

USDC stablecoin issuer Circle Internet Group (CRCL) began trading on the New York Stock Exchange last week via an IPO.

The days that followed were very successful – arguably spectacular. The current share price above $100 is well north of its $31 IPO price. The first week’s trading success showcased that the digital asset space is seeing renewed interest.

It was enough to spark the Winklevoss twins to file an IPO for their successful cryptocurrency exchange, Gemini. We can expect another exchange, Kraken, to file as well, given its prior statements about listing in 2025.

The recent success of Circle builds on other IPO successes this year. eToro, another trading platform, saw its shares soar above its $52 IPO-priced shares. Its share price is now well above $70.

There have been other larger entities looking to IPO as well. And given the recent success stories, this trend of crypto companies conducting an IPO is heating up.

It’s very clear that the pro-crypto regulatory environment has finally opened the floodgates for digital asset companies to access the public markets. Not only is this bullish for investors, but it’s also great that there will be more digital asset companies filing quarterly reports, demonstrating transparency with their businesses. It’s a critical step for the industry’s legitimacy.

And the heightened interest in digital asset IPOs is a clear signal that larger players are demanding more exposure to the digital asset space, and Wall Street is ready to act as the dealer to make it possible. A crypto public listing boom is imminent.

M&As

Mergers and acquisitions are often a quick way for an entity to expand its product and service offerings without needing to build solutions from the ground up.

Often, this activity ramps up when businesses look to add value to their company as fast as possible. It’s when time is of the essence.

And we’re now seeing a major uptick in M&A happening in the digital asset industry.

A few months ago, Kraken agreed to buy NinjaTrader for $1.5 billion. NinjaTrader is a U.S. retail futures platform. At the time, it was the largest crypto deal to date. The deal bolsters Kraken’s offerings, likely ahead of an IPO listing.

But that record deal was quickly surpassed last month when Coinbase announced it acquired the options and futures platform Deribit for $2.9 billion.

Deribit is the leader in options volume in the market, and its addition to Coinbase will bolster the exchange’s market offerings.

Then there’s Robinhood, the retail-friendly trading platform. It has been in a frenzy, buying up WonderFi and Bitstamp. It acquired WonderFi, a crypto trading platform, for $179 million. Meanwhile, Bitstamp is the world’s longest-running cryptocurrency exchange with customers across the EU, UK, and Asia. That deal closed for $200 million.

These are just some of the bigger deals that have transpired over the last couple of months, and they highlight the growing competition to win over the dry powder ready to be deployed.

And with the success of Circle’s IPO, the M&A space is likely to remain hot for some time.

Regulatory Changes

All this activity leads us to the “why”… and the source of the second catalyst – regulatory changes.

We’ve been tracking these developments for some time and have been engaged with members of Congress, lobbyists, and regulators to get the inside scoop.

You can read some of these updates in The Debt Buyer Nobody Is Talking About, The Market’s Silent Monster, and Washington D.C. Puked, among others. We even held a live summit for subscribers of Permissionless Investor because the progress is unfolding so quickly.

But the most recent regulatory news is the biggest of the bunch – The CLARITY Act. The act is one of the most highly anticipated pieces of digital asset legislation. It will provide the industry with a framework to begin working in tandem with regulators.

It’ll mark the first piece of legislation that paves the way for Wall Street to get involved with both hands.

It’s the reason its stockpile of dry powder is being pointed at digital assets.

We’ve been tracking the act’s progress for months before the first draft was introduced on May 5.

But ever since the most recent draft has been introduced, momentum has been building. In fact, just yesterday, the CLARITY Act just made its way to the House of Representatives’ Agriculture and House Financial Services Committees.

And it was advanced the same day with an overwhelming 47 to 6 vote. It has broad support across both aisles.

This is the second part of the catalyst.

And it’s moving at a remarkable pace.

That’s why time is of the essence, and we’re seeing activity across ETFs, IPOs, and M&A activity picking up.

The digital asset industry is about to become the darling of Wall Street, and it’s why we need to be paying particularly close attention to the sector.

Your Pulse on Crypto,

Ben Lilly

P.S. If you want to gain access to the cryptocurrencies that are poised to benefit from this impending catalyst, you’ll want to join Jeff and me at Permissionless Investor. We’ve put together a model portfolio of coins for subscribers to be positioned before regulatory developments get set into law by Congress. Consider joining us today.