Degen Trading Boom
Rohit Mulani@rohitmulani
· 1
−2.3%
since Oct 10
The idea
I believe young men worldwide are giving up on slow, traditional saving and leaning into options, crypto and prediction market trading instead, and that this keeps growing over the next year or two. I own the apps where that trading happens, like Robinhood and Coinbase, plus similar platforms serving traders outside the US. I also hold the exchanges and market makers behind the scenes, since they earn on volume regardless of which app wins and help cushion the basket if any single platform runs into trouble. I keep about a tenth in cash to add on the dips.
What it owns
- These platforms profit when young Americans trade options, stocks and prediction markets at higher volumes. · Robinhood MarketsIt is the primary app where young US traders place options, crypto and prediction market trades, so it stands to gain directly when that trading volume rises., Interactive BrokersIt earns on options trading from active retail customers across many countries, capturing the global expansion of high-volume traders., WebullIt is built for active traders and attracts the exact demographic betting on increased trading activity and options volume., SoFi TechnologiesIt attracts young customers with banking and then sells them trading and crypto products, gaining when that demographic trades more.34%
- These exchanges and market makers earn fees on trading volume regardless of which app customers use. · Intercontinental ExchangeIt owns major trading venues and has invested in prediction market infrastructure, so it earns fees regardless of which app wins market share., CME GroupIt runs the largest futures exchange where event contracts trade, so it collects fees when retail and event contract volume increases., Cboe Global MarketsIt is where short-dated options that attract young traders actually execute and clear, so it collects fees as that volume grows., Virtu FinancialIt is a market maker that fills retail orders from trading apps and profits when retail trading volume is high., Miami International HoldingsIt is a smaller options exchange gaining market share in US options trading volume.29%
- These platforms take a cut of every memecoin and crypto trade, so they gain when high-risk crypto betting grows. · Coinbase GlobalIt is the largest US crypto trading platform and is expanding into prediction markets, so it profits when retail crypto trading volume grows., Gemini Space StationIt is a smaller crypto exchange betting on crypto trading spreading to new retail users.13%
- These platforms serve high-risk traders in Europe and Asia, capturing the same trend outside the US. · eToro GroupIt lets young people in Europe and Asia copy other traders and trade stocks and crypto, capturing the global version of retail trading growth., Futu HoldingsIt operates moomoo, a trading app popular with young retail traders across Hong Kong, Singapore and other Asian markets., UP Fintech HoldingIt is an Asian trading platform targeting young, active retail traders with the same high-volume trading behavior.13%
- Cash11%