3min chapter

Coin Stories with Natalie Brunell cover image

Sam Callahan: What You Need to Know About GBTC and the Crypto Contagion

Coin Stories with Natalie Brunell

CHAPTER

BlockFi and Three Arrows Capital - What's the Difference?

BlockFi, the reason I focus on BlockFi and three arrows, capital is they were the biggest shareholders in GBTC. And so even BlockFi, you know, there was like these connections. But what they started to do was take on these GBTC positions. And then when it flipped to a discount,. They had these illiquid GBTC shares, like they couldn't sell them. So they're like, what are we going to do? And then they started to use those GBTC positions as collateral to get more USD loans. The illiquid nature of it has led to all these liquidity issues. That seems to foreshadow what happened to a lot of these lenders who use GB

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