Dec 10, 2022 • 48M

EP8 - Deep dive into Grayscale's Bitcoin Trust Premium trade

How did hedge funds, brokers and exchanges like 3AC, Genesis and BlockFi trade Grayscale’s bitcoin trust?

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Episode details

🔻How did hedge funds, brokers, and exchanges like 3AC, Genesis, and BlockFi trade Grayscale’s bitcoin trust? BlockFi had $1.7 billion of exposure to GBTC. Genesis had $5 billion of exposure. Based on the best available information at the time of this writing, it is my conclusion is that BlockFi, Alameda, FTX, Grayscale, Genesis, DCG, Gemini, and 3AC all operated in a close loop group of eight crypto firms colluding to synthetically pump Grayscale’s bitcoin premium using leveraged positions funded by retail depositors.


🚀 In this podcast we answer the following questions:

  • What is the Grayscale Bitcoin Trust?

  • What does it mean to trade a discount or premium?

  • What is a NAV?

  • How were Grayscale’s GBTC shares were used in under-collateralized leveraged positions?

📚 Read the full analysis here:

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Cover art generated by DALL-E:: “A van gogh style painting of hedge fund analysts trading imaginary money”

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