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Since MS had USD cash reserves, why is ADV taken for the whole of the bitcoin ecosystem and not just spot [USD] + stablecoin market [USDT]? bitcoin average daily volume: $200m [cash/USD] + $1,300m [stablecoin] = $1.5 billion. so shouldn't ADV be = $1.5 billion?

@SBF_Alameda

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SBF

@SBF_FTX

Sep 20, 2020

3) what if you do it slowly during a quieter time? Well, one quick and dirty estimate: impact ~ daily vol * sqrt(size / ADV). Here, that's roughly 1% * sqrt($400m/$10b) or so; so maybe like 1% * 20% =.... ....0.20%? That's 100x lower!

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Akash

@Mangyek0

Sep 28, 2020

Based on this, the square root market law aka impact is = 1% * sqrt (400/1500) impact % = 0.5163%

SBF

@SBF_FTX

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@Mangyek0

Because arbitrageurs can use liquidity from futures to provide in spot

6:31 AM · Sep 28, 2020Twitter Web App

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and

Thanks

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and

So, no matter what the size, as long as the institution absorbs the sell-side liquidity with appropriate algos, the price will have little to no impact, is that the conclusion?