There’s an ETF that sends a market out of whack. A hedge fund pro says bitcoin-like gains could come next.

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Well, take a break from the discussion of the bad news for the economy, the good news for the stock market, to take a look at a commodities market that has been skyrocketing in recent weeks, uranium. .

Uranium futures topped $ 40 a pound on Tuesday for the first time in six years and have jumped 33% since mid-August. This has propelled other uranium games, such as Canadian producer Cameco CCJ, -2.54%, and Global X Uranium ETF URA, -2.64%, which invests in uranium miners and other producers of nuclear components.

Uranium futures have surged since mid-August. FactSet

Harris Kupperman, chairman of hedge fund Praetorian Capital, said what’s going on is that an exchange-traded fund, the Sprott Physical Uranium Trust, is now buying uranium to basically store it, to keep it out. from the hands of nuclear power plant operators. who needs it. It’s just Pac-Man over all physical uranium, Kupperman told financial website RealVision. He compared what happened with uranium with what happened to bitcoin BTCUSD, -1.52% after Grayscale Bitcoin Trust GBTC, -1.63% started buying virtual currency.

It’s that reflexive feedback loop, she feels Soros’ reflexivity, where the other trust is raising capital, it has to buy more uranium, the price of uranium goes up, it attracts more speculators, emits more uranium. ‘actions to buy more uranium, continues to advance. a good way, he said.

Can’t producers just produce more? The Doomberg blog uncovered this overall cost curve, from Uranium Energy Corp. UEC, -6.55%, which suggests that in mid-August, almost half of producers were not making money.

Prices still have a way to go to alter the investment decisions made by producers. Kupperman said the marginal cost to produce uranium can reach $ 70 a pound. They are not going to relight the mines anytime soon, he said.

Sometimes the cuts work, and sometimes they don’t, as one observer on Twitter put it.

The buzz

Speaking of short presses, video game retailer GameStop GME, -2.66% reports results after the closing bell.

Jobs, the Federal Reserve’s beige book with economic anecdotes and consumer credit data are expected to be published.

St. Louis Fed Chairman James Bullard has said he wants the central bank to reduce bond purchases despite slowing job growth in the United States.

Dallas Fed Chairman Robert Kaplan was an active buyer and seller of stocks last year, the Wall Street Journal reported, citing a financial disclosure form.

Activist hedge fund Elliott Management has taken a more than $ 1 billion stake in Citrix Systems CTXS, + 4.24% and is pushing for changes, according to a Wall Street Journal report.

French pharmaceutical Sanofi SNY, -2.51%, has agreed to buy biopharmaceutical Kadmon Holdings KDMN, + 72.74% for $ 1.9 billion, or $ 9.50 per share.

Chinese electric car maker NIO NIO, -6.61%, has announced plans to issue up to $ 2 billion in shares.

The market

US equity futures ES00, -0.48% NQ00, -0.84% ​​were pointing lower after a mixed end for trading on Tuesday. The yield on 10-year Treasury TMUBMUSD10Y, 1.354% was 1.35%, and GC00 gold, -0.22% was trading around $ 1,800 an ounce.

The tweet

John Hempton, the founder of hedge fund Bronte Capital, has been very critical of Coinbase COIN, -3.11% CEO Brian Armstrong, who tweeted his surprise that allowing crypto clients to lend. their assets, in return for a return, would be considered security by the Securities and Exchange Commission.

Random readings

From emerging to overwhelmed, Pakistan has been demoted to a border market.

Animals change shape in response to climate change.

The BBC examines the science behind frozen ramen.

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