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This week we’ll talk about how European crypto ETPs are seeing rapid growth, signaling a new wave of institutional interest. Investor confidence is soaring to levels not seen in 14 years, but Jerome Powell's warning about the U.S. fiscal path casts a shadow over the markets. And, in the amazing world of collectibles, Tom Brady’s rare Rolex topped even his own sports memorabilia at auction.

The Weekly Fun Fact 🤔

At Sotheby’s “GOAT Collection” auction, Tom Brady’s memorabilia took a backseat to his 18-karat gold Rolex “Paul Newman” Daytona Ref. 6241, which sold for an impressive $1.14 million, surpassing its $900,000 estimate. 

Known for its ties to car racing, this rare piece stole the spotlight from Brady’s other watches, including his personalized Audemars Piguet Royal Oak, which fetched $720,000. In total, Brady’s timepieces brought in $4.6 million — a small slice of the NFL legend’s fortune, proving once again that Rolex reigns supreme in the auction world.

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🔴 Powell’s warning: The U.S. debt dilemma 💥

Federal Reserve Chair Jerome Powell has issued a stark warning about America’s fiscal future, calling the nation’s $36 trillion debt “unsustainable”. Speaking at the DealBook Summit, Powell urged immediate action, pointing out the risks of running large deficits during times of full employment and economic growth.

The timing is critical as Republicans prepare to extend Trump-era tax cuts. Speaker Mike Johnson and GOP leadership aim to fast-track new tax reforms, but concerns over the ballooning national debt are creating fractures within the party. A group of budget conservatives could block these plans, demanding fiscal restraint amid worries that debt growth is overtaking economic expansion.

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🟡 Market optimism and the Fed’s safety net 📈

Investor confidence is at a 14-year high, with 46% believing there's less than a 10% chance of a market crash in the next six months — this is the most optimistic outlook since June 2006, according to Yale. This boost in sentiment comes alongside a 50% rally in the S&P 500 since October 2022. And yet, paradoxically, investors also see the market as the most overvalued since the Dot-Com Bubble.

This bullish mindset is supported by a key shift: the Federal Reserve’s commitment to intervening whenever asset prices drop sharply. Since the Global Financial Crisis, quantitative easing (QE) has become the Fed's go-to tool, fueling continuous asset growth by slashing rates and printing money. 

As long as this safety net exists, prolonged bear markets seem unlikely — a world where “bears sound smart, but bulls make money.”

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🟢 Europe leads the charge in crypto ETPs 💹

Europe has been quietly controlling the digital asset exchange-traded product (ETP) industry for almost ten years, while US-based Bitcoin ETFs make headlines. There are now 221 cryptocurrency ETPs operating on European marketplaces, handling $19.86 billion in assets, since the first Bitcoin ETP was introduced on the Nasdaq Stockholm in 2015.

Bitcoin ETPs still lead with 49.66% of AUM, but altcoins like Solana, Ethereum, and even memecoins are gaining ground. With the upcoming MiCA regulations set for 2025, Europe’s regulatory clarity, diverse offerings, and market innovation position it as a global leader in crypto investment products.

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Interesting reads

ECB cuts rates again and keeps door open to further cuts
The European Central Bank cut interest rates again, citing euro zone instability and U.S. trade war risks.

How women will control $34 trillion by 2030
A spike in female fortunes thanks to inheritance and career gains is set to transform investing and philanthropy around the world.

Which Rolex Submariner Model Is Best For Investment
For decades, the Rolex Submariner has stood as an icon of luxury, precision, and timeless design.

Economic Indicators Every Investor Must Know
The U.S. has numerous key economic indicators. Let’s examine some of the most common to help you understand the news.

This 1954 Mercedes-Benz Racer Could Fetch $52+ Million
The 1954 Mercedes-Benz W 196 R Stromlinienwagen, presented by RM Sotheby, could be the second-most-expensive car ever sold at auction.

🎬 It’s a wrap on the week! From Europe’s crypto surge to Powell’s fiscal caution, this week highlights the forces shaping markets.

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