SEC Makes Huge Announcement

APPROVED: Bitcoin Spot ETFs Are Here

On Wednesday, the U.S. Securities and Exchange Commission (SEC) greenlit the nation's first exchange-traded funds (ETFs) that follow Bitcoin's value, marking a significant milestone for the leading cryptocurrency and the wider crypto sector.

This approval occurred just a day after a bogus announcement was mistakenly shared on the SEC’s social media account on platform X, claiming these products had been sanctioned for trading. The agency promptly refuted and removed the fraudulent post.

A day later, the SEC gave the nod to 11 applications from major firms like BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck. This decision came despite concerns raised by some officials and advocates for investors about the potential risks of these products. Most of these ETFs are slated to start trading on Thursday, as announced by the issuers, setting the stage for intense competition in the market.

These Bitcoin ETFs are transformative, representing a decade-long journey, allowing investors to gain exposure to the number one cryptocurrency without owning it directly. This move significantly bolsters the crypto industry, with companies gearing up for a wave of digital advertising and other promotional activities. Several issuers have already begun advertising campaigns highlighting Bitcoin as an investment option.

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MERGER: Between Energy Companies

Chesapeake Energy and Southwestern Energy have entered into a $7.4 billion all-stock merger, creating one of the U.S.'s largest natural gas producers. The deal, based on Chesapeake’s closing price on Wednesday, will see the merged company with a market value of over $17 billion. This merger is a significant step in Chesapeake’s shift towards natural gas since its 2021 bankruptcy emergence.

It follows their strategic acquisitions and divestitures in U.S. shale regions. Similar large-scale deals by Exxon Mobil, Chevron, and Occidental Petroleum underscore the consolidation trend in the energy sector. Expected to close in the second quarter, Chesapeake shareholders will own about 60% of the new entity, with the remainder held by Southwestern investors.

GOOGLE: Lays Off Hundreds

Google is proceeding with layoffs affecting several hundred employees in its digital assistant, hardware, and engineering departments as part of its cost-reduction efforts. This move is in response to growing competitive pressures on Google's primary search business from Microsoft and OpenAI's AI advancements.

The tech giant, a subsidiary of Alphabet, joins a series of tech firms implementing workforce reductions this year, a trend that began in early 2023. Similar actions are seen at Amazon, which is downsizing its Prime Video and Twitch segments, and Unity Software, which is planning to cut its workforce by 25%.

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The WILD Founding of Air BnB

These tech-founders started selling cereal to raise cash and turned those profits into an $85 billion dollar business. The founders of Air BnB, Brian Chesky and Joe Gebbia, couldn’t afford rent in 2007 because they were trying to launch a failing startup. The Industrial Designers Society of America was hosting a conference in San Francisco, and all hotel rooms were booked. The two roommates decided to rent their rooms out so they could afford rent for the month. They bought three air mattresses and marketed their idea as “Airbed & Breakfast.” On the first night, they had three guests stay with them.

The two roommates went full-time on the new startup and added a 3rd founder, but unfortunately, they were making no money and struggling to pay their bills. To receive funding, Chesky and his co-founders created special-edition cereals called "Obama O's" and "Cap'n McCains" based on presidential candidates Barack Obama and John McCain. They sold these cereals at the Democratic and Republican conventions and raised over $50,000. Y-Combinator was impressed by their cereal venture and invited them to their seed funding program. Today, Airbnb has over 5 million listings and is in over 100,000 cities.

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