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:

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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.

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.)

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

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

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

~ Andrew

This is Elon Musk’s Next Tech Disruption…

And it could turn the entire AI market upside down.

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

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

It’s nice that states are separating themselves into “smart” and “stupid” categories so Americans can tell where and where not to live. The issue of sound money, in particular, is indicative of a whole range of other likely tax/spend/regulate policies that affect quality of life.

The CBDC Anti-Surveillance State Act, if passed, will ensure that this program doesn’t morph into anything ominous, at least right away.

But there’s always another crisis coming down the pike. And governments always sound reluctant at first to claim emergency powers, at least until a fearful populace demands they do so.

So don’t count out a CBDC yet – but at least this is one crisis that can be kicked down the road a few years.

For now, crypto investors are finally getting Congress to deliver on the regulatory clarity they’ve wanted for years – and it points to more gains for crypto in the months ahead.

But it will require ongoing vigilance to ensure the crypto dream doesn’t become a nightmare.

Looking at your gold stock holdings with an eye to how much share dilution they’ve done is critical to your investment success.

Share dilution is real across any industry. But how shares are being diluted, and what they’re being diluted for matter.

In the resource space, that means paying close attention to the value of any announced acquisitions, the total shares outstanding, and how that company is performing relative to its underlying resource.

That can make the difference between a good investment, a middling investment, and a killer investment.

In 2023 and 2024, gold prices trended higher. That trend has continued this year, with gold prices rallying over 20%.

In prior years, gold mining companies have been conspicuously absent from that rally. But in 2025, they’re starting to move up – and at a faster pace than gold:

Gold mining stocks should perform better than gold during a rally. Why? Imagine a gold company has total cash costs of $1,500 per ounce.

At $2,500 gold, they make a profit of $1,000 per ounce. If gold rallies to $3,500, a 40% rally, the miner’s profit goes from $1,000 to $2,000 per ounce – a 100% jump in profits.

That’s the power of investing in gold mining companies. Aside from the first half of 2016, this is the best setup for gold mining stocks since the early 2000s. It’s not too late to buy gold stocks if you haven’t done so yet.