Good morning readers. Say goodbye to those zebra-striped packs of fruity goodness. Fruit Stripe, a gum that has tickled taste buds since the 60s with its vibrant flavors and iconic mascot, Yipes the Zebra, is being retired. While this decision marks the end of an era for Wet n’ Wild Melon, Cherry, Lemon, Orange, and Peach enthusiasts, Ferrara (the giant behind this nostalgic treat) assures us it wasn't an easy call. As Fruit Stripe prepares for its final bow, fans might still snatch a pack or two from select stores. But as these shelves empty, so does a colorful chapter in candy history. So grab them while you can and savor the sweet, stripy memories.

Let’s jump into today’s storylines.

In today’s digest:

• Bitcoin ETF’s are here

• Headline Hustle: Amazon lays off hundreds of employees across Prime Video, MGM Studios and Twitch; Citigroup’s profit hit by $1.3 billion in reserves; Nick Saban retires after 28 years

• How an emergency lending program has turned into easy money for banks

• Pulse Points: What’s Trending

CRYPTO

SEC embraces Bitcoin ETFs

In what's been likened to a financial version of landing on the Moon, the U.S. Securities and Exchange Commission (SEC) has just green-lit the trade of bitcoin via exchange-traded funds (ETFs). Yes, you read that right – mainstream investors can now dabble in bitcoin without the hassle of crypto exchanges.

This is big

The SEC's green light for Bitcoin ETFs means that now, instead of wading through the murky waters of cryptocurrency exchanges or shadow-boxing with products that only indirectly track bitcoin, investors can get a direct piece of the action. These newfangled "spot-bitcoin ETFs" are set to hit the mainstream market, neatly packaged within a traditional investment wrapper.

Following the SEC's decision, crypto assets experienced a mixed reaction in the market.

• Ether, the second-largest digital currency, surged by nearly 10%.

• Coinbase Global, the largest publicly traded crypto exchange, saw a 1.4% drop in after-hours trading.

• Notably, Coinbase is listed as the custodian on eight out of the 11 spot-bitcoin ETF applications, indicating its significant role in the evolving regulatory landscape of the crypto industry.

All applications filed were approved. The SEC has approved all 11 applications from asset managers, including BlackRock, Fidelity Investments, and ARK Investment Management, with trading set to commence today. But despite the fanfare, not all are throwing confetti. Two Democratic SEC commissioners opposed the move, waving the red flag of investor protection. The SEC's previous rejections, citing concerns about fraud and market manipulation, seem to have taken a backseat following a court ruling favoring Grayscale last year.

Big picture: The SEC's approval of a Bitcoin ETF establishes a precedent for other cryptocurrencies, potentially leading to the creation of ETFs for assets like Ethereum and influencing financial advisors' attitudes towards crypto investments. But it also raises concerns about potential scams and investor protection, highlighting the need for a balanced approach in the rapidly evolving and unpredictable crypto market.

Headline Hustle

🎥 Amazon is laying off hundreds at Prime Video, MGM Studios and Twitch. In a cost-cutting wave sweeping across the tech world, Amazon is making bold moves by slashing jobs in its film, television studio, and Twitch streaming platform. The e-commerce titan, which had expanded its employee base to 1.5 million as of December 2022, is now tightening its belt. Amazon's big-budget ventures, like the $6.5 billion MGM acquisition and the lavish $715 million spent on "The Rings of Power" series, highlight its aggressive push into entertainment. Meanwhile, Twitch, known for generously paying streamers over $1 billion last year, faces its own financial balancing act, shutting down operations in South Korea due to unsustainable costs.

📉 Citigroup gears up for turbulent times with billions in risk reserves. In a tumultuous turn, Citigroup braces for impact with $1.3 billion set aside for risks in Argentina and Russia, amidst global instability. The bank's Q4 is marred by Argentina's peso devaluation, wiping out $880 million in revenue. Preparing for its December quarter reveal, Citigroup also faces a $1.7 billion FDIC fee and a $780 million restructuring charge, hinting at significant job cuts. Despite these challenges, Citigroup remains committed to its strategy, navigating a complex web of international and internal financial pressures.

🏈 Nick Saban is calling it quits after 28 years. Nick Saban, the legendary coach who redefined college football with a record seven national championships, announces his retirement. Saban's tenure at Alabama was marked by an unparalleled six titles in 17 seasons, embodying consistency in a sport known for its constant changes. With a staggering 206-29 record at Alabama, Saban's methodical 'process' and top-tier recruiting transformed the team into a powerhouse. Saban's departure leaves a monumental legacy and raises questions about his successor in a rapidly evolving college football landscape. As tributes pour in, Saban's influence extends beyond Alabama, evident in his impact across the Southeastern Conference and beyond.

BANKING

From crisis response to profit machine: BTFP's journey

The Federal Reserve's bank term funding program (BTFP), established in response to the 2023 banking crisis, is witnessing an unexpected development. Initially designed to offer financial stability, the program is now serving as a lucrative source for banks, exploiting the market’s shift towards anticipating multiple Federal Reserve rate cuts in the coming year.

Don’t worry, we’ve got cash

As market predictions lean towards a decrease in rates, the interest banks pay for using the BTFP has become increasingly favorable. This scenario has led to a significant uptick in borrowing from the program, with lending reaching a staggering $141.2 billion. The program's current appeal lies in its advantageous rates: while the Fed offers financing below 5%, it simultaneously pays banks 5.4% on reserve balances, presenting a profitable arbitrage opportunity.

The BTFP's origin traces back to the fallout of the Silicon Valley Bank collapse, aiming to reassure depositors with the promise of ample liquidity. However, the reversal in rate expectations has transformed the program's dynamics, allowing banks to benefit from the rate differential between borrowing and depositing funds.

Looking ahead…the BTFP is set to expire on March 11. The longevity of its appeal hinges on market sentiment, which could shift if expectations align more closely with the Federal Reserve's own forecasts. Despite providing a temporary arbitrage benefit, the program is unlikely to significantly alleviate broader challenges in the banking sector, including rising deposit costs and potential declines in profitability. As the market continues to adapt, the BTFP's role as an unintended benefit for banks highlights the complexity and unpredictability of financial market dynamics.

SNIPPETS

Pulse Points

• OpenAI is in talks with media companies CNN, Fox Corp., and Time to potentially license their content for training its artificial intelligence model ChatGPT and incorporating their content into its products.

• Aaron Rodgers will no longer be a guest on ESPN's "The Pat McAfee Show" for the remainder of the NFL season due to a weeklong controversy involving the star quarterback and the show.

• NFL sees its highest ratings since 2015 amid Taylor Swift-fueled surge in interest, with an average of 17.9 million people tuning in, a 7% rise from the previous year.

• Chris Christie exited the GOP presidential nomination race, although he refrained from endorsing any other candidate in the effort to challenge frontrunner Donald Trump.

• SpaceX sent it first text message through Starlink satellites on T-Mobile's network, signaling progress toward launching its direct-to-device cell service in the near future.

• Starting on January 24, McDonald’s is reintroducing the Double Big Mac with four beef patties instead of two, available for a limited time nationwide.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 4,500+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.