Surviving The GBTC "Widowmaker" Trade That Blew Up In 2021 | David Choi

Follow On The Margin On Spotify: https://spoti.fi/46WWQ6T Follow On The Margin On Apple Podcasts: https://apple.co/3UsnTiM Follow Blockworks Macro On YouTube: https://bit.ly/3NKpujX -- This week, David Choi Founder of MetStreet Labs joins the show to discuss a viral thread he wrote on the GBTC "widowmaker" trade that blew up in 2021. We deep dive into the mechanics of the GBTC arbitrage trade, the role of Bitcoin lenders (BlockFi, Genesis) & how the unwind of the GBTC widowmaker trade dragged down the industry in 2021 - 2022. We then compare to todays market conditions and why 2024 & beyond may be a more sustainable market environment for crypto. To hear all this & more, you'll have to tune in! -- Read David's thread here: https://twitter.com/0xZergs/status/1746126672451993999?s=20 -- MANTRA Chain is a Cosmos SDK-based L1 blockchain addressing regulatory compliance gaps in the Cosmos ecosystem. Positioned as the "blockchain for tokenized RWAs and regulated digital assets," MANTRA offers high-performance, scalable blockchain architecture, supporting both permissionless and regulated, compliant applications. Learn more: https://www.mantrachain.io/ -- Follow On The Margin: https://twitter.com/OnTheMarginPod Follow David: https://twitter.com/0xZergs Follow Mike: https://twitter.com/MikeIppolito_ Follow Blockworks: https://twitter.com/blockworks_ -- Digital Asset Summit 2024. Use Code: MARGIN10 for a 10% discount. https://blockworks.co/event/digital-asset-summit-2024-london Research, news, data, governance and models – now, all in one place. As a listener of On The Margin, you can use code "MARGIN10" for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/ -- (00:00) Introduction (02:47) The GBTC Arbitrage Trade (08:44) Structure Of The Trade (15:24) BlockFi, Genesis & GBTC (19:18) MANTRA Ad (20:39) The Bitcoin Lending Market (23:11) When The GBTC Trade Started To Spiral (29:29) DAS London Plug (30:45) Unwinding The Trade (38:53) Current State Of The Market (46:10) Final Thoughts -- Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.