TradFi is driving the crypto price formation process
The guest argued that traditional finance has transitioned from a passive participant to the dominant driver of digital asset price discovery.
The argument
The speaker noted that in early-to-mid 2025, spot ETFs and proxy vehicles like MicroStrategy began rivaling or exceeding traditional spot volumes, while regulated options platforms began overtaking native crypto derivatives exchanges in open interest.
The thesis, stress-tested
✓ What validates it
- ✓Regulated options platforms consistently exceeding native crypto derivatives exchanges in daily volume
- ✓ETF and proxy equity volumes maintaining a dominant share of total spot trading volume
▸ Risks discussed
- ▸Traditional market hours and structures may distort native crypto price signals
- ▸Concentration of liquidity in a few institutional vehicles
Hear it yourself
"And then if you add, like, MicroStrategy, which is a Bitcoin proxy, you're kind of rivaling that whole volume. Just a few weeks after I was looking to the options market, and then I saw that iBit options was on its path to overtake Deribit Bitcoin options, both in terms of open interest and in terms of volume."
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