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

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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!

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Read David's thread here: https://twitter.com/0xZergs/status/1746126672451993999?s=20

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(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

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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.