Happy Monday Flux fam!

Here's everything you need to know today - in under 3 minutes.

Today's big stories: 

🚀 An Aussie Bitcoin ETF has taken off

🐣 Allbirds surged more than 90% in its debut

👛 Chanel is hiking prices again

Oh and get this...

Ya won't wanna dunk 'em or dipp 'em too often. The maker of Oreos and Sour Patch Kids has revealed the tasty treats are about to get a lot more expensive due to global supply chain issues. 

A Bitcoin ETF took off on its first day of trade and, surprisingly, it didn't need an Elon Musk tweet

Background: BetaShares are an Aussie provider of exchange-traded funds (aka ETFs). They started back in 2009, and really led the ETF movement here in Australia.

What happened: About a week ago, Australia's corporate regulator ASIC gave Bitcoin ETFs the green light. And nek minnit (the next week) Betashares releases their first crypto ETF called CRYP.

What else: It ain't an ETF with bitcoin, ethereum and other cryptos (that's still illegal). Instead, it's an ETF with investments in crypto-adjacent companies, like Coinbase and Riot Blockchain. And by the end of its first day of trade, CRYP saw around $42.5 million traded. 

So what's the key learning? 

💡An exchange-traded fund has an investment in a bunch of companies in the one fund. And this fund is traded on the share market just like an individual share.

💡ETFs are popular because they they're less risky. Ya know, don't put all your eggs in one basket. An ETF is made up of investments in multiple different companies, which reduces the impact on your overall returns if one of those companies goes belly up.

💡Some ETFs are designed to mimic stock markets (i.e. the ASX200 or the NASDAQ100). Some are designed to track sustainable companies, and others track tech companies. And, they're a lot safer than investing in a speculative stock...and expecting to ride it to the moon. 

Eco-friendly kicks company Allbirds flew high on its stock market debut

Background: Allbirds is an eco-friendly footwear company that was founded by former New Zealand soccer player, Tim White. Ya might know them by their signature wooly fabric - and for being sported by some big name celebs like JLo and Ben Affleck.

What happened: A 'lil while ago, this crew flagged they were headed for an IPO (aka they were launching publicly on the stock exchange). And last week, they had their long-awaited debut.

What else: Not unlike the Bitcoin ETF, this IPO did not disappoint. Shares were up 92.6% to US$29 after the stock's first day of trade. And the tech-enabled company was valued at U$S3.3 billion.

So what's the key learning?

💡There's tech businesses and there's tech-enabled businesses. Same same, but very different. 

💡Allbirds is a tech-enabled company (aka, it uses tech like e-commerce to improve its traditional business of making and selling shoes). A pure tech company is a company that operates solely in the tech realm (i.e. Canva or Atlassian). 

💡Tech-only businesses can scale infinitely without additional humans, whereas tech-enabled companies have a few more hurdles to jump in order to scale.This leads to lower margins overall than tech-only companies, and therefore lower valuations. 

Oops! They did it again...Chanel are hiking prices for the third time since the beginning of 2020

Background: Chanel are a French luxury brand famous for their leather handbags and that crossed-over CC. And after 112 years, they're still one of the biggest names in the US$340 billion luxury industry. 

What happened: Even though sales at Chanel fell 17.6% last year, the company kept their profits up by ramping up their prices. 

What else: Put ya wallets away, Flux fam...'cos Chanel are about to do it again. The company revealed they are once again hiking their prices for their 'iconic models' to account for changes in their production costs and raw materials. 

So what's the key learning?

💡Unlike everyday brands, which aim to reduce their prices, luxury brands are actually increasing their prices. And, ironically, this makes them seem even more premium.  

💡In 1991, The OG Mac laptop sold for $2,300 in 1991...and now they start at $1,500 (a 35% decrease). Chanel on the other hand? A Medium Classic Flap bag was $1,150 in 1990...and it's $7,800 this year. That's a 560% increase.

💡For luxury brands, limited supply can create a sense of exclusivity that we're all familiar with (aka FOMO). In the end, price hikes don't deter buyers...in fact, it just adds to the allure of the brand.