I wonder if Tesla buying $1.5B in BTC and being in the S&P has just made BTC selloffs causing market selloffs less of a prophecy and more of a reality.
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I wonder if there's a vol arb play here
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BTC has higher vol than S&P obv -> BTC is now x% of TSLA -> TSLA vol likely increases -> ivol & hvol should increase on SPX
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Replying to @nope_its_lily
BTC is like ... 4% of Tesla's balance sheet (or 0.2% of its market cap) and Tesla is 1.6% of SPX, I am not convinced it is going to move the needle.
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Replying to @CautionPesimism @nope_its_lily
BTC holdings are ~68% of balance sheet, ~34% of market cap, and MSTR is 0% of SPX
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(very rough numbers, based on some assumptions and projections from their 2020 balance sheet)
8:20 AM - 10 Feb 2021
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