1. We put on our largest single ticket trade today by purchasing 812 $LUNA ($75.5k) and staking it in the Terra ecosystem. After several weeks of discussions with leading professionals in the DeFi space, we have high conviction in this.
2. This is in addition to the 8 ETH of $bLUNA that we acquired at $54 and $72 (now $92), which we already have as collateral for UST deposits and are utilising the slow burn process. Credits to our podcast guest @shivsakhuja for the graphic
3. We added a higher risk strategy by purchasing worth of $HND at an average price of $2.50. Already +57.6%. We put this on because a) we already have stables on hundred.finance and b) we spoke to a number of people v close to the protocol about their plans.
4. We have received an airdrop of 1500 $NEWO for contributing to the NEWO/USDC LP on @SushiSwap. In fact, I just got off a call with 2 of the founders who were instrumental in the launch of $BTRFLY and they will also be coming on the podcast v. soon. Looking forward to seeding.
5. Overall portfolio balance has is healthy (see low/medium/high). $920k/240E. +289% since our first $ETH distribution of 40E on 26/12/2021 (8 days).
Tune into the Twitter Spaces tonight to hear from me and the rest of the team, and to learn more about our GROWTH plans.
1. If you, as a retail buyer want to buy $IBTC (the iShares spot bitcoin ETF), then you'd go to your broker/online platform and swap your $ for shares in the ETF. The broker would go and buy the shares on the exchange (Nasdaq) on your behalf. Easy.
2. This is what we call the 'secondary' market. The shares already exist, and you can buy them at the market price. But what if there are no ETF shares available in the secondary market?
People don't really understand what Blackrock is, or what they do.
So let's go inside...
But first a little about their founder and CEO Larry Fink, since it will be important later
Larry joined Wall St in 1976. He was smart and made money. He pioneered the idea of debt securitization (packaging up different loans as bonds). He then ran the trading desk for those Mortgage Backed Securities (MBS). Yes, those bonds that led to the 2008 GFC 🤯
Jamie Dimon's tradeoffs? (or any other major bank CEO)
+ve: buy SVB, apply discounts to the assets, limit withdrawals upon re-opening, perhaps bail-"IN" depositors (everyone takes a little %hit), get trading desk to make money managing the longer duration stuff
+ve: agree with Fed that rates will be capped so that they can slowly unwind the longer duration book and/or agree with Treasury/Fed to buy those assets from them directly
-ve: but higher rates have actually been good for JPM (and most strong banks) as it grows the net interest income on their loan book
- Circle foolishly put 8.25% of its USD reserves ($3.3bn/$40b) in a niche bank
- now Circle don't have access to those funds as SBV is technically "insolvent"
- i.e. SBV don't have enough cash or assets on hand to honor all requests for USD
- On Monday the insured portion of SBV deposits will be available to depositors (up to $250k)
- For the rest, you have a few options:
1. A big bank buys out SBV and assumes the liabilities (needs to be soon)
OR
2. A process begins where FDIC will have to start selling the assets (bonds) to make creditors whole. The current gap is $1-3bn. To meet [short-term] liquidity needs of these creditors, FDIC can issue "advanced dividend" for a portion of the amount (%tbd)