Bitcoin is so back

• This post originally appeared in the Insider Today newsletter.

Hiya! After a few days on the Las Vegas strip, where a large cold brew from Starbucks runs you $9, I appreciate how fast food prices are getting out of hand. Insert Taco Bell's "meal-sized" menu items for $3 or less.

In today's big story, we're looking at the big news out of crypto land: the approval of a bitcoin ETF.

What's on deck:

• Markets: Conspiracy theorists are targeting the Fed. That's bad news for the US economy.

• Tech: Amazon, Instagram, Duolingo, and Twitch all announced layoffs.

• Business: Hand up — it's partly the media's fault that the economy feels so dreary.

But first, bitcoin is so back.

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The big story

Bitcoin's big day

The holiday season is over, but the crypto community finally got the gift it's been asking for: a bitcoin ETF.

After years of lobbying, a lawsuit, and one very public false alarm, the SEC announced Wednesday it approved spot bitcoin ETFs for trading in the US.

Fidelity, BlackRock, VanEck, and Grayscale were among the 11 bitcoin ETF applications that received approval on an "accelerated basis" from the SEC. It's a big reversal for the regulator, as SEC Chair Gary Gensler has previously taken a hardline approach to crypto.

So why does it matter? In the simplest of terms, a bitcoin ETF represents a more palatable and straightforward way for both people and firms to invest in bitcoin.

The process of buying and selling bitcoin has become much more mainstream compared to a decade ago, but it's not without its headaches. Meanwhile, bitcoin futures, which have been around for years, aren't as accessible to mom-and-pop investors.

But a bitcoin ETF is the easiest way for even the most skeptical investors to gain exposure to the cryptocurrency. And with traditional financial firms managing some of the ETFs, there is an added layer of security for those who haven't yet bought into the digital-currency ecosystem.

Beyond representing another way to invest in bitcoin, the ETFs are also the final piece of the puzzle for large institutional firms looking to trade in the space. The ability to buy and sell bitcoin as a currency, a future, and an ETF means firms can develop a much more complete trading strategy with the necessary hedging their risk department might require.

The approval of a bitcoin ETF will likely lead traditional Wall Street firms to push deeper into the space, something many in the crypto industry have been begging for.

It seems undeniable this will ultimately lead to a boon for bitcoin. Fundstrat's Tom Lee suggested the price of bitcoin could surge to $500,000 in the next five years. (To be sure, the price of bitcoin initially dropped 1% off the back of Wednesday's news.)

But I question the role crypto-native companies — most of whom have been eager for this to happen all along — will play as things really take off.

Wall Street is a zero-sum game where playing nice isn't the standard. Early adopters of crypto might have deep knowledge or expertise of the space, but that doesn't guarantee them a seat at the table going forward.

Factor in how some of the industry's high-profile names have had serious legal issues — most notably FTX and Binance — and traditional firms might not be as quick to establish partnerships.

The future definitely seems bright for crypto. But what's not as clear, or bright, is what happens to some of the firms who helped get it here.

3 things in markets

1. Conspiracy theorists have set their sights on a new target: the Fed. With the 2024 presidential election around the corner, a number of conspiracy theories have already arisen, including one that claims the Federal Reserve is trying to help Joe Biden win the race.

2. Jamie Dimon slams bitcoin (again). The JPMorgan boss reiterated his stance that cryptocurrency is worthless, deriding it as a tool for criminals. Dimon also warned that a recession could hit this year.

3. A finance blogger has been outperforming top firms since 2018. Eddy Elfenbein, a blogger and ETF manager, has outpaced Warren Buffett's Berkshire Hathaway and Cathie Wood's ARK Invest by filling his exchange-traded fund with "boring" stocks.

3 things in tech

1. The new features of Tesla's refreshed Model 3. It's the vehicle's first refresh in years. It boasts more range and new colors — for the same price as before.

2. Some Amazon employees say the launch of its largest generative AI product was rushed and flawed. Soon after launching the AI chatbot Q, Amazon received a barrage of negative feedback. Now, the giant has significantly bulked up its existing team of human staffers who manually review and fix the chatbot's responses.

3. Tech layoffs have come back. Duolingo laid off workers to lean more on AI. Meanwhile, Amazon is laying off "several hundred" employees across Prime Video and Amazon MGM Studios. Internal messages suggest there were also layoffs in Amazon Pay and marketing. Twitch is similarly cutting 500 jobs, and Instagram is slashing an entire level of management.

3 things in business

1. Sam's Club is going to stop checking receipts at the door. AI will check instead. The wholesaler plans to use AI to snap photos of your shopping cart. It's already in place in 10 US stores and is set to expand nationwide this year.

2. It's (partly) the media's fault that the economy feels so dreary. A new study found that the media has been more negative about the economy than the underlying data — on things like GDP, inflation, and unemployment — would suggest.

3. Disney's Bob Iger needed a win. Pat McAfee just gave him one. For the past few weeks, Iger watched as McAfee and Jimmy Kimmel, two of his most important stars became embroiled in controversy. But McAfee made one major decision that appears to have ended the squabble — landing a win for Iger.

In other news

• Ron DeSantis and Nikki Haley both bet their best play was to rip into each other and largely leave Trump unscathed. They were wrong.

• Alaska Airlines cancels hundreds more flights in wake of Boeing 737 Max 9 incident.

• Alan Dershowitz called for the release of Epstein court documents. In them, Virginia Giuffre alleges they had sex at least six times.

• You're not imagining it — it feels damn near impossible to get into top colleges right now.

• The "phantom debt" of buy now, pay later is growing and will soon hit some Americans hard.

• Cattle, catapults, and an underground bunker: Is Mark Zuckerberg a doomsday prepper?

• Costco may start requiring members to scan ID to enter US warehouses.

• A Meta employee says she's under investigation after claiming the firm censors pro-Palestinian views.

What's happening today

• The Brooklyn Nets and Cleveland Cavaliers face off in France. The international matchup is part of the NBA's push to reach more fans globally.

• It's Wear Blue Day to raise awareness about human trafficking. The educational campaign was started by the Department of Homeland Security and coincides with National Human Trafficking Awareness Day.

• Happy birthday, Mary J. Blige! Alexander Hamilton, Naomi Judd, Cody Simpson, and Yolanda Hadid were also born on this day.

For your bookmarks

Quiet status symbols

The quiet status symbols you'll see everywhere this year. Le Creuset remains as popular as ever. But brands like NuFACE, Alo, and Arc'teryx are also now subtle symbols of wealth.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Jordan Parker Erb, editor, in New York. Hayley Hudson, director, in Edinburgh. Lisa Ryan, executive editor, in New York.