There were always ample warnings, there always subtle signs, and you would have seen it coming but we gave you too much time.     – Guns ‘N’ Roses, “Coma” Key points:

Bitcoin proxy MicroStrategy to join the Nasdaq 100 and heavily traded ‘QQQ’ ETF     – CNBC, 12/13/24 The large increase in passive investing over the last 20 years has led to substantially more inelastic aggregate demand curves for individual stocks… when demand is more inelastic, small changes in the market structure can have a large effect on prices, because investors are unwilling to change their positions.      – Haddad et al, 2021, via Simplify ETFs How does

Continued growth in stablecoins, assuming the current trend in stablecoin collateral choices continues (or is forced by a regulator), will create structural demand for short-dated U.S. Treasuries; recommended issuance should on the margin lean to a higher proportion of T-bills.– US Treasury TBAC supplemental report, October 2024 To date, digital asset markets have limited access to traditional safe-haven or risk hedging instruments like USTs.  In recent years, institutional sponsorship of Bitcoin has been growing and