$5.5 Billion in BTC Might Unlock 🚀

Maker $750M US Treasurys | Trade Crypto Bankruptcy Claims

GM folks 👋🏻 - happy hump day 🐫

Crypto markets continue to stagnate. At this point, we're seeing more action from Bed Bath & Beyond's stock. In other news, Grayscale vs SEC is heating up and Amazon is reportedly planning to launch an NFT marketplace, although details are scarce.

In Today's Email:

  • What Matters: Grayscale might win against the SEC, unlocking $5.5B 👨‍⚖️

  • Case Study: OPNX, trade crypto bankruptcy claims 📜

  • Governance & Features: MakerDAO plans to add $750M to US Treasury 🤑

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Narratives: Voyager token rose as Binance US got the green light to purchase Voyager's assets. DeFi perpetuals protocol, specifically Level Finance, GMX, and Gains Network, continue to hold the highest rank by fees and revenue.


US Court Questions SEC's Rejection of GBTC ETF 👨‍⚖️

State of play: Post the court hearing, Grayscale products soared as judges question the SEC's decision-making when the agency rejected Grayscale's GBTC ETF conversion. Many now think that Grasycale is likely to win. The ruling will be out in Q2 or Q3 2023.

Listen to the court recording hearing, here.

  • If the ETF conversion approved, it would unlock $5.5 billion in value for GBTC holders.

  • Questions arose regarding the SEC's treatment of spot vs futures BTC markets, and why are they different, in terms of market manipulation.

Why it matters: If Grayscale wins, $5.5 billion will be unlocked for GBTC investors. This will most likely create downward pressure for BTC in the open markets. However, this also means that US spot BTC ETF can now be approved, which will draw more liquidity from retail investors 📈

  • No matter the results, the outcome will set a meaningful precedent for the future of institutional crypto products in the US.

For builders: This might be the turning point necessary, at least in the short-term, to bring liquidity back to the crypto space. Understand the narratives that are happening and time your announcements or product launches accordingly.

For investors: Honestly, if you have the ammo and the time horizon isn't an issue, GBTC has always been a great trade. The discount is massive and it's extremely unlikely for DCG to let the situation goes on unresolved. The BTC that's backing your GBTC is there.

  • So long as you are patient enough 🧘; and know how to hedge the BTC price volatility, the discounts are massive enough to warrant a lucrative trade.


OPNX: Crypto Bankruptcy Claims Marketplace

State of play: OPNX is a controversial centralized exchange founded by the founders of 3 Arrows Capital and Coinflex. It claims to be the world's first platform to trade crypto bankruptcy claims. Let's turn that irony up to the max. Further details have emerged 📝

  • OPNX successfully raised $25M.

  • There are 20 million users who lost $20B USD in crypto-related bankruptcy cases.

  • OPNX will group similar claims and tokenize them, allowing users to use their claims as collateral to trade perpetuals for major crypto assets. What could go wrong? 🤷

  • Users will be onboarded via a Special Purpose Vehicle (SPV), and there will be full KYC (Americans aren't allowed).

  • There will be an exchange token that has a buyback-and-burn mechanism from 20% of OPNX's revenue.

Our take: While what OPNX aims to offer makes sense (giving 20 million users early access to their lost $20B which would otherwise take years), the fact that it was founded by entities who were responsible for some of these bankruptcy claims in the first place leaves a bad taste in many people's mouth.

  • At the same time, there might not be any entity out there that has the incentive to start an exchange such as OPNX, if it's not the 3AC founders in the first place.

  • Only time will tell if they can really use OPNX to make things right.

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MakerDAO Plans to Add $750M to US Treasury

Maker proposes an additional $750M US Treasury purchase. The largest decentralized stablecoin protocol has previously allocated $500M to US Treasurys to capitalize on the high-yield environment. If passed, it will bring the tally to $1.25 billion.

  • MakerDAO will be investing in six-month U.S. Treasurys using a ladder strategy with a biweekly rollover.

  • The additional revenues will go towards: DAI savings rate, MKR burn, and buying ETH.

  • Thus far, Maker has generated $2.1M in fees from US Treasurys.

Why it matters: Maker's US Treasurys move continues to tie the DeFi ecosystem with real-world assets, which is a positive trend, but not without its own risk. Many have criticized Maker's move, stating that it makes Maker more prone to censorship and court order.

Other notable feature updates:


  • MakerDAO proposes additional $750M of US Treasury purchase.

  • Binance US gets green light to buy Voyager's digital assets.

  • Powell boosts warning on crypto industry.

  • Silvergate is in talks with FDIC.

  • US Court questions SEC's rejection of Grayscale's GBTC.

  • FTX's Alameda sues grayscale.

  • FTX Bankruptcy Special Counsel charges $38M for January 2023.

  • OCC comments on crypto firms.

  • Nansen launches on-chain query products.

  • Coinflex receives go ahead on its restructuring plan.


  • David Phelps' thread on 1% of crypto users representing 99% of tx volume.

  • @mattigag's article on the big gamble.

  • @tumilett's article on bridge token dashboard.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.