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Swan Signal Live - A Bitcoin Show

Vijay Boyapati | DCG Fraud, Bitcoin Spot ETF Approval | EP 132

Nov 10, 2023
Bitcoin and blockchain expert, Vijay Boyapati, discusses the alleged fraud of DCG, Genesis, and their leaders Barry Silbert and Michael Moro, its impact on GBTC, the downfall of Three Arrows Capital, potential legal woes, the importance of self-custody, and the likelihood of GBTC converting to a spot Bitcoin ETF.
01:10:14
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Episode guests

Vijay Boyapati

Podcast summary created with Snipd AI

Quick takeaways

  • The lack of safe mechanisms for retail investors to access Bitcoin has led to institutional borrowing and leverage trades, exacerbating market misalignments caused by premium trades on GBTC.
  • The close relationships and lack of transparency between DCG, Genesis, and Grayscale raise questions about conflicts of interest and fairness in the market.

Deep dives

The SEC's Impact on the Market and GBTC Premium Trade

The SEC's disallowance of Bitcoin ETFs led to a premium trade on GBTC, causing misalignments in the market. The lack of safe mechanisms for retail investors to get exposure to Bitcoin created incentives for institutions to borrow BTC from Genesis and put on leverage trades. This premium trade would not have caused as much damage if it had been done without leverage. The SEC's failure to provide a safe ETF mechanism is partially to blame.

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