【Don't Expect You to Understand】

Yesterday, I talked with Jesse about the relationship between US stocks and BTC until late at night. Coincidentally, today I saw Prathik Desai's article "New Skin, Old Instincts," and I felt that many of the viewpoints coincided.

Here's a brief summary:

1. The correlation between US stocks and BTC is becoming stronger, but this relationship is subtle with many unknown "big players" engaging in arbitrage, extracting liquidity to pre-fund the entire US stock market and BTC. After interest rate cuts, it will be even crazier because borrowing costs will be lower.

2. The tokenized stocks that Robinhood is promoting in the EU essentially package US stocks as on-chain assets. The value disparity is irrelevant; they are essentially certificates. In the future, this will force the insider information from weekends to impact the trends of US stocks when they open on Monday, with insider trading rampant and pricing power shifting to Sunday time.

3. Many institutions are now trading BTC as if it were a tech stock, and the market is using the US stock valuation framework to price BTC/ETH. The essence of financial efficiency has not changed.

4. When Nathan Most invented ETFs, no one expected SPY to become a product with better liquidity than the underlying stocks. Now, tokenized assets may be repeating this script. Liquidity migration is often irreversible; it's just that this bidirectional migration has nothing to do with imitation.