Invest a relatively large sum in a small asset (in $ terms), where additionally a significant fraction is not liquid (i.e. does not trade, sits off exchanges) => prices skyrocket. Fixed supply compounds the impact.
Want to buy 1,000 BTC ($3.8 million) at market on Coinbase? You need to cross the bid-ask spread. Doing so would result in approximately a 10% premium.
The larger the size invested, the higher price goes.
- JPM: 117x
- Citi: 50x ("for some cryptoassets")
- Burniske: 2x-25x
- Vinny: 5x-10x