Caitlin Long

We're going to have derivatives, you know, throwing the spot,

price around the tail wagging the dog.

That is exactly what seemingly happened last week.

If you believe some... Jeff Park, by the way, shout out to Jeff, some great analysis on the iBit options causing the spot Bitcoin price to collapse, right?

We see these things in TradFi all the time.

You see...

It's not a regular occurrence, but it's not a Six Sigma event either, where you see a huge divergence between the spot price and an ETF price.

It happens, and it certainly has happened in Bitcoin.

And the more derivatives... Let's put it this way.

It's not an accident that NASDAQ increased the iBid options limit, and all of a sudden, then we had kind of a market crash, right?

Because the derivatives became the tail wagging the dog.

This is exactly...

why I think this is a double-edged sword.

Yes, it brought in new liquidity because a lot of folks just aren't comfortable with self-custody and they finally could buy a version of Bitcoin.

It's a claim on Bitcoin when you buy an ETF.

It's not the actual thing, but it's just easier.

And the network effects of all the broker-dealers and all the RIAs who were out there buying

bringing their clients into Bitcoin through the ETFs for the first time.

That was clearly positive, but it also was the prerequisite to what happened last week.

And we will see more and more of that.