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Ripple Effect

The Passive Bid Has Already Come for Crypto

Loading ...Andrew Packer

July 15, 2025 • 1 minute, 56 second read

BitcoinCryptoMSTRpassive bid
The Passive Bid Has Already Come for Crypto

One of the most important trends underpinning markets today is the passive bid.

That’s simply the term for the fact that money comes into the market. If you’re participating in a 401(k) plan, you’re part of the passive bid. Each payday, the money that gets deducted from your paycheck goes into your investment funds.

In turn, that money moves down to individual stocks that get bought up. Payday after payday after payday.

In time, this trend could reverse. A rising unemployment rate. Higher withdrawals from retirees from stocks as they shift to bonds.

Until that shift changes, it’s a structural reason why stocks are the best game in town – and why investors should buy market pullbacks.

Today, the passive bid is also drawing capital to crypto. Just consider how Vanguard’s small-cap ETFs are regular buyers of Strategy:

Turn Your Images On

Vanguard’s Strategy holdings now top 8% of the company – and rising

Strategy – formerly MicroStrategy, until its market cap hit $100 billion – is best known today for aggressively buying bitcoin and holding it. Given that Strategy is in a number of funds, there’s already passive money flowing to shares today.

The money flowing to Strategy could soar even higher if the company is added to the S&P 500 later in the year.

For now, we prefer bitcoin to Strategy, given that shares trade at a premium to their bitcoin holdings. With positive crypto legislation on deck from Congress this week, however, expect both bitcoin and Strategy shares to add to their recent gains.

~ Andrew

This is Elon Musk’s Next Tech Disruption…

And it could turn the entire AI market upside down.

Turn On Your Images.

Click here to see the details and learn how to prepare.

P.S. We see cryptocurrencies as a key part of President Trump’s Great Reset plan. However, it’s more likely that stablecoins, rather than bitcoin, Ethereum or the like, will get the most attention in the coming months.

Stablecoins take a dollar, issue a token, and then the process is reversed at some point. But stablecoins also invest those dollars into U.S. Treasurys. With stablecoin demand increasing, it could become the lynchpin for refinancing America’s debt at a reasonable interest rate.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

James Howard Kunstler: Suspicious Minds

August 6, 2025 • James Howard Kunstler

This enormous, drawn-out insurrection, composed of serial felony crimes, amounts to the greatest insult against the republic — the res publica, in Latin, the public thing — in the nation’s history. And now it is coming apart as an overwhelming majority of citizens, including now many Democrats, can’t avoid discovering what has happened in the country. Because lies are weak and the truth is sturdy and eventually truth prevails, even after an arduous struggle.

The old news media complex, the networks and the papers, are not reporting the recent disclosures by the Directors of the CIA, the FBI, and National Intel. What will it take to get their attention? Arrests and perp-walks of formerly important officials? And then, do they acknowledge and atone for their disgraceful participation in the events? Or pretend they couldn’t figure any of it out for years and years? Poor us, we didn’t know! Suddenly, it looks like many of these “legacy” news outfits are going out-of-business. They’re throwing their performers over the side like sinking ships casting off so much useless ballast.

James Howard Kunstler: Suspicious Minds
It’s the Robot’s Economy Now

August 6, 2025 • Addison Wiggin

For now, the contribution of AI to the economy is still a fraction of overall consumer spending.

If this trend continues, it’s a sign that the market may further concentrate into the big tech names, which already trade at rich and lofty valuations.

It’s the Robot’s Economy Now
In The Forge of… Dysfunction?

August 6, 2025 • Addison Wiggin

Yesterday, President Trump nixed speculation that Treasury Secretary Scott Bessent would be the next Fed Chair. “He wants to stay where he is,” Trump told CNBC yesterday, adding Fed Governor Christopher Waller and NEC Director Kevin Hassett are now in the running.

Powell’s still at the podium, despite ongoing threats and the occasional Truth Social tantrum over interest rate policy.

Whoever’s in control of writing the script for the ongoing dream has dropped teasers in social media for next week’s episode: Will Trump leave Powell at the helm of the Fed and create “The Shadow Fed”… (cue dramatic music and video close-up of Powell’s bespectacled visage).

Stay tuned. 

In The Forge of… Dysfunction?
Too Much of a Big Nothing

August 5, 2025 • Bill Bonner

Now cometh AI, adding to the too-much-info problem. Already, it generates news and reports that fill our in-boxes and waste our time. And an Israeli company just announced that it can twist and turn (distort) the news in real time.

Which leaves, at least for now, AI and the Mag 7 in an old-fashioned financial bubble. Stock prices are far higher than actual sales and profits can account for. So one way or another price and value will have to come back together. While it is not impossible that some breakthrough will lead to a big burst of productivity gains and growth, it is more likely that stock prices will fall.

Too Much of a Big Nothing