Crypto ETFs introduce high causal correlation
The launch of spot ETFs has structurally linked Bitcoin and Ethereum to the broader tech and momentum liquidation cycles.
The argument
The hosts and guest argued that crypto is no longer an uncorrelated asset class because the spot ETFs act as a direct transmission mechanism, causing crypto to sell off in tandem with high-beta tech during market liquidations.
The thesis, stress-tested
✓ What validates it
- ✓A stabilization or reversal of outflows in spot Bitcoin ETFs
- ✓A decoupling of crypto asset prices from Nasdaq intraday movements
▸ Risks discussed
- ▸Extreme drawdowns in underlying tokens severely depress trading volumes and revenues for brokers like Coinbase
Hear it yourself
"That's not a coin division. Well, is it here's the question. Is it correlated, or is it cause call causal? I think it's causal. I think the ETFs if they're not putting money into the ETFs, is there any who else is who else is could buy enough?"
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