FalconX

The repo market is $16 trillion globally and most people have never heard of it — until the plumbing breaks. Craig Burchell of FalconX and Matteo Pandolfi of Pareto explain how it works and why bringing it on-chain is the next big unlock for DeFi. --- Heads up! If you haven’t yet, be sure to subscribe to Bits + Bips, since the show will migrate there in a few weeks. Follow us on ⁠⁠⁠⁠⁠Apple Podcasts⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠Spotify⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠X⁠⁠⁠⁠⁠, ⁠⁠⁠⁠⁠Unchained⁠⁠⁠⁠⁠ and wherever you get your podcasts. ---- The repo market is $16 trillion globally and it is, as Craig Burchell puts it, the oil that makes everything go. It is also almost entirely absent from on-chain finance — and that gap is creating real problems for RWA liquidity, stablecoin swap desks, and DeFi protocols trying to manage redemption queues. Steve Ehrlich sits down with Craig Burchell, head of lending at FalconX, and Matteo Pandolfi, CEO of on-chain credit infrastructure provider Pareto, to map exactly how repo works, what broke in 2019, why it translates extremely well into onchain finance. Matteo puts a $1 trillion figure on where on-chain repo gets in five years. Craig gives you one reason it gets there and one very honest reason it might not. Host: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Steve Ehrlich, Head of Research at SharpLink and Host of Bits + Bips: The Interview - https://x.com/Steven_Ehrlich Guest: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Craig Burchell — Head of Lending, FalconX; previously Head of Lending at Membrane Finance. @_CraigBirchall ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Matteo Pandolfi — CEO & Co-Founder, Pareto (on-chain credit infrastructure). @pan_teo_ Learn more about your ad choices. Visit megaphone.fm/adchoices

Craig Burchell

FalconX

Matteo Pandolfi

PAPareto

Bitcoin's spot-led rally looks healthy on the surface. But derivatives say conviction is thin. Josh Lim from FalconX on what the market structure is actually telling you right now. --- Thank you to our sponsors! MultiChain Advisors is an emerging technology growth firm that has helped create $50B+ in enterprise value for 80+ clients over the past 4 years. They're the partner to help navigate markets.  Build real traction today at multichainadv.com As Bitcoin's application layer, Citrea gives you access to the first trust-minimized BTC on a fully programmable platform and a native stablecoin for Bitcoin, ctUSD.  You can now participate in Bitcoin capital markets with lending, privacy, payments, Bitcoin yield, trading and predictions. You get expanded Bitcoin utility without sacrificing its security.  Citrea mainnet is live. Put your BTC to work at citrea.xyz/unchained.  --- Bitcoin is trading near $75,000, but the market structure around it tells a more complicated story. Implied volatility has collapsed to sub-50, funding rates are negative, and the options market is dominated by sellers, not buyers. Meanwhile, Bitcoin miners are liquidating holdings to fund the transition to high-performance compute, generating a persistent offer just as breakeven retail holders look for an exit.  FalconX Global Co-Head of Markets Josh Lim joins Steve Ehrlich to map exactly what is keeping Bitcoin range-bound, where the rotation into ETH and alts is actually coming from, and what signals in derivatives and on-chain data would indicate the market is ready to move.  They also get into whether the Clarity Act changes the long-term structure of the altcoin market, how Hyperliquid is being used for institutional RWA arbitrage, and what the quantum threat means not for cryptography, but for trading Bitcoin. Host: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Steven Ehrlich⁠⁠⁠⁠⁠, Head of Research, SharpLink Guest: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Josh Lim — Global Co-Head of Markets, FalconX. Repeat guest; previously covered market structure and institutional crypto flows on Bits + Bips. Learn more about your ad choices. Visit megaphone.fm/adchoices

Josh Lim

Head of Derivatives

FalconXNonco

Quantum computing risk, USDC vs. Tether drama after the Drift hack, and World Liberty Financial’s governance circus take center stage as Haseeb, Tom, Tarun, and special guest Joshua Lim dissect market signals, institutional FUD, Trumpcoin shenanigans, and ask: is crypto VC dead or just getting started? Welcome to The Chopping Block — where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest in crypto. This week, the crew is joined by special guest Joshua Lim, Head of Derivatives at FalconX (and self-described Quantum FUD Whisperer). Ever wondered what happens when a quantum computer finally threatens public key cryptography? We break down the real and imagined risks of “Q Day,” what markets are actually pricing in, and why watching for Satoshi’s coins moving is still the ultimate market panic trigger. Next up, the hosts tackle the messiest storyline in stablecoins: the massive Drift hack, North Korea’s role, and the blame game between USDC and Tether. Is Circle’s “wait for the court order” approach defensible, or are PR wins up for grabs for whoever moves fastest? We would never forget the crypto car crash that is World Liberty Financial: from drama-filled governance votes that magically extend lockups, to Justin Sun’s redemption arc versus Trumpcoin, to whale-scale DeFi leverage that could nuke a protocol. It’s a masterclass in governance theater and permissioned shenanigans. Finally, we level with all the “crypto venture is dead” crowd — who’s still building, where the real capital is now, and why bear markets always demand an extra shot of conviction. From quantum nightmares to meme coin melodrama, let’s get into it. Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform. Show highlights 🔹“Q Day” decoded: What quantum risk really means for Bitcoin and the markets   🔹 How institutional allocators cite quantum FUD — but are they just making excuses?   🔹 Why “watching for Satoshi’s coins moving” would nuke market confidence   🔹 Drift hack dissected: USDC vs. Tether, North Korea fingerprints, and Circle’s PR headache   🔹 Is Circle’s don’t-freeze-without-court-order policy defensible or just bad optics?   🔹 World Liberty Financial’s (Trumpcoin) greatest hits: forced lockups, governance theater, and Justin Sun’s crusade   🔹 Tether’s “PR coup” and the stablecoin migration on Solana   🔹 Are most crypto VCs washed? Debating the right-sizing of venture capital in the bear   🔹 Hot takes on “revenue meta,” mature infrastructure, and why there’s less room for dreamers   🔹 Who’s actually still building in crypto — and why cycles always come back Hosts ⭐️Haseeb Qureshi, Managing Partner at Dragonfly ⭐️Tarun Chitra, Managing Partner at Robot Ventures ⭐️Tom Schmidt, General Partner at Dragonfly  Guest ⭐️ Joshua Lim, Head of Markets at FalconX Links: Joshua Lim’s Q-Day Thread: ⁠https://x.com/joshua_j_lim/status/2044602429002367330?s=20⁠ Disclosures Learn more about your ad choices. Visit megaphone.fm/adchoices

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

Thank you to our sponsor! Fuse Bitcoin's collapse is accelerating. Continuing a descent that began last week, the asset this week has all the price progress made under the Trump administration. The price action begs the question why amid greater adoption and support. In this episode of Unchained, FalconX Head of Markets Joshua Lim highlights two main reasons for Bitcoin's regression and offers his outlook for the year. Is it 2022 all over? Plus, how gold's run resembles GameStop in 2021 and why Hyperliquid is a bright spot amid market weakness. Guest: Joshua Lim, Head of Markets, FalconX Links: Bitcoin Sinks as Markets Price In a More Hawkish Fed Has Bitcoin Failed to Live Up to the Digital Gold Narrative? Why HYPE Is Up While Every Other Crypto, Including Bitcoin, Is Down Learn more about your ad choices. Visit megaphone.fm/adchoices

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

This week, Josh Lim from FalconX joins the show to discuss the recent market sell-off. We deep dive into Josh's outlook for 2026, who is crypto's marginal buyer, the Ethereum L2 roadmap, Kyle Samani's announcement of leaving Multicoin and more. Enjoy! -- Follow Josh: https://x.com/joshua_j_lim Follow Rob: https://x.com/HadickM Follow Santi: https://x.com/santiagoroel Follow Empire:https://x.com/theempirepod -- Coinbase crypto-backed loans, powered by Morpho, enable you to take out loans at competitive rates using crypto as collateral. Rates are typically 4% to 8%. Borrow up to $5M using BTC as collateral and up to $1M using ETH as collateral. Manage crypto-backed loans directly in the Coinbase app with ease. Learn more here: https://www.coinbase.com/onchain/borrow/get-started?utm_campaign=0126_defi-borrow_blockworks_empire&marketId=0x9103c3b4e834476c9a62ea009ba2c884ee42e94e6e314a26f04d312434191836&utm_source=empire -- (00:00) Introduction (03:41) State of the Market (08:48) Josh's Outlook For 2026 (18:45) The SaaS-Pocalypse & Crypto's Marginal Buyer (26:12) Coinbase Ad (26:58) The Crypto to AI Rotation (37:24) The Ethereum L2 Roadmap (47:27) Kyle Samani Leaves Multicoin (01:01:45) Why Is Josh Still In Crypto? (01:03:57) Content of The Week -- Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, Rob and our guests may hold positions in the companies, funds, or projects discussed.

Josh Lim

Head of Derivatives

FalconXNonco

This week, Jason is joined by Shiliang and Josh to discuss derivatives, perps, trade ideas, the state of the overall market and Public Crypto Vehicles’ impact on the market.  -- Start your day with crypto news, analysis and data from Katherine Ross. Subscribe to the Empire newsletter: https://blockworks.co/newsletter/empire?utm_source=podcasts -- Follow Shiliang: https://x.com/ShiliangTang Follow Josh: https://x.com/joshua_j_lim Follow Santi: https://x.com/santiagoroel Follow Jason: https://x.com/JasonYanowitz Follow Empire: https://twitter.com/theempirepod -- Join the Empire Telegram: https://t.me/+CaCYvTOB4Eg1OWJh -- Crypto never sleeps. So we built an Al analyst that never blinks. Meet Focal by FalconX: a GenAI insights engine built for institutional crypto.Already used by 80+ funds managing $10B+ in AUM.- Screen, chart, and analyze 1300+ tokens- Summarize market-moving news instantly- Integrates data from CoinGecko, Kaito, Token Terminal, Tokenomist, The Tie Get started today: https://askfocal.com -- SKALE is the next evolution in Layer 1 blockchains with a gas-free invisible user experience, instant finality, high speed, and robust security. SKALE is built different as it allows for limitless scalability and has already saved its 50 Million users over $11 Billion in gas fees. SKALE is high-performance and cost-effective, making it ideal for compute-intensive applications like AI, gaming, and consumer-facing dApps. Learn more at https://skale.space and stay up to date with the gas-free invisible blockchain on X at @skalenetwork -- Ledn is the leading platform for Bitcoin-backed loans, offering a secure and transparent way to unlock liquidity without selling your Bitcoin. Ledn has issued over $9 billion in loans since 2018 and has never lost a single satoshi of client assets, earning a reputation as the name you can trust in the crypto space. Visit https://www.ledn.io to learn more. -- Chapters: (00:00) Intro (02:47) Arbelos Founding Story (09:25) Still One Big Trade? (12:14) Ads (Skale) (13:07) Derivatives Market Explained (18:26) Perps Explained (20:53) Venture & Liquid Funds (23:41) Inefficiencies In Crypto Market (24:56) State Of The Market (29:49) Impact Of Liquidity Drains (32:54) Ads (Skale) (33:46) Public Crypto Vehicles + Risks (48:27) Ads (Falcon x,LEDN) (50:15) Does The Cycle Still Exist? (51:38) Deribit Deal (57:38) Bitcoin ETFs (01:03:34) Hyperliquid (01:07:42) Trade Ideas — Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.

Shiliang Tang

Chief Investment Officer

LedgerPrime

Josh Lim

Head of Derivatives

FalconXNonco

The crypto markets are at a crossroads. While macro chaos — tariff whiplash, rising yields, and inflation fears — continues to dominate headlines, bitcoin has barely budged. And some say that’s exactly the signal. In this episode, Matt Hougan of Bitwise and Matthew Sheffield of FalconX join Laura to unpack the tension between short-term volatility and long-term conviction. They explore why this cycle may look very different from previous ones, how institutional capital is navigating crypto, and whether we’re entering a new era defined by fundamentals, not just narratives. Plus: Why bitcoin might hit $200K, what Ethereum needs to reclaim momentum, and the real potential of DeFi under this new administration. Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Bitwise Human Rights Foundation Guest: Matt Hougan, CIO of Bitwise Previous appearances on Unchained: How Small Bitcoin ETF Issuers Will Compete With the Likes of BlackRock Why a Spot Bitcoin ETF Will Probably Launch No Later Than January 10 Matthew Sheffield, Senior Trader at FalconX Links Subscribe to our new crypto + macro newsletter! https://bitsandbips.beehiiv.com/subscribe Recent coverage of Unchained on the economy and tariffs:  Why CoinFund Believes There’s Still a Strong Bull Case for Bitcoin and Crypto Arthur Hayes on Why Tariffs Will Be Good for Bitcoin and Crypto Bits + Bips: Why a U.S. Recession May Be Coming — And Still Isn’t Priced In Bits + Bips: Trump’s Tariffs Are Causing Mayhem, But Will They Revive U.S. Manufacturing? Trump Tariffs Sink Crypto, BlackRock Pumps Bitcoin’s Bags Why Trump-Induced Stagflation Could Finally Make Bitcoin a Safe Haven In Market Crash, What Should You Buy? Crypto VCs Are Making These Bets Bitcoin Tops $83,000 as Tariff Pause Sends Markets Soaring Crypto Traders See Another $1B Liquidated Amid Tariff Turbulence  Recession incoming? Ray Dalio’s remarks on Meet the Press Timestamps: 📍 0:00 Introduction 🧠 3:48 “An extraordinary moment to live in,” says Matt ⚖️ 5:21 The growing disconnect between long-term belief and short-term pain 🔍 7:40 Why fundamentals are finally taking center stage in investor analysis 🐻 12:34 Solana’s memecoin reputation… can it shake the stigma? 🏛️ 14:29 How ETFs permanently changed crypto market dynamics 📉 15:27 What the 10-year treasury is telling us about bitcoin’s next move 📊 20:28 What crypto options are revealing about investor sentiment 📈 22:33 Whether Ray Dalio is right about where the U.S. economy is headed 💵 28:16 What a weaker dollar means for bitcoin’s value 🚀 31:17 Is $200K bitcoin coming? And who will drive it there? 🌊 38:55 What has to happen for alt season to actually return 🔄 44:40 What light ETF outflows since “Liberation Day” mean 📈 51:10 Why crypto IPO demand is heating up ⚖️ 54:37 DeFi’s big regulatory moment and why the market might be missing it Learn more about your ad choices. Visit megaphone.fm/adchoices

Matt Hougan

Chief Investment Officer

Bitwise Asset ManagementBitwise

Matthew Sheffield

FalconX

The Scoop's host, Frank Chaparro, was joined by August Co-Founder and CEO Aya Kantorovich. In this episode, Chaparro and Kantorovich went over the state of crypto capital markets, the resilience of DeFi during market downturns, and how banks are looking to get started in DeFi. OUTLINE 00:00 Introduction  01:08 From banking to crypto  02:30 Why institutions avoid DeFi  05:33 How institutions impact volatility  10:50 Crypto as the weekend market  17:00 Bitcoin as a reserve asset  20:01 Cambrian explosion of memecoins  26:28 Coinbase earnings  31:42 The resiliency of deFi  37:49 AI Agents  42:00 Conclusion GUEST LINKS Aya Kantorovich - https://www.linkedin.com/in/ayakantorovich/ Aya Kantorovich on X - https://x.com/aya_kantor August - https://www.augustdigital.io/ August on X - https://x.com/august_digital

Aya Kantorovich

Co-CEO and Co-founder

FractalAugustFalconX

Joshua Lim is the co-founder of Arbelos Markets. In this episode, Lim and Chaparro discuss the crypto market surge sparked by Donald Trump's election as U.S. President. Lim sheds light on how the Trump administration's regulatory stance could pave the way for institutional investors to dive deeper ino the crypto space, potentially driving higher trading volumes and boosting liquidity across the ecosystem. OUTLINE 00:00 Introduction 01:01 Macro Tailwinds 03:17 Flows & Volume 08:14 Market Opportunities 12:29 ETF Flows' Impact on Crypto 21:30 Crypto Credit Market 24:52 MicroStrategy's Strategy 27:37 Market Predictions 33:08 Banks & Crypto Adoption This episode is brought to you by our sponsors, Polkadot & Bitkey. The Block Community The Block is launching a new community experience for fans of The Scoop! Follow us on Lens to stay in the loop: hey.xyz/u/theblockcommunity The Block Newsletters The Block's newsletters bring you the latest news and analysis of the fast-moving crypto and DeFi markets. To subscribe, visit theblock.co/newsletters GUEST LINKS Joshua Lim - https://www.linkedin.com/in/joshua-lim-1b27098/ Joshua Lim on X - https://x.com/joshua_j_lim Arbelos Markets - https://arbelos.xyz/ Arbelos Markets on X - https://x.com/arbelosxyz

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

With Bitcoin ETF options on the horizon, the crypto market is bracing for significant changes. In this episode, Joshua Lim, co-founder and CEO of Arbelos Markets, joins us to explain what the launch of Bitcoin ETF options means for the broader market. Could they unlock vast amounts of capital and set off a new altcoin boom? Josh also dives into the potential effects on Bitcoin volatility, DeFi lending, and even the onchain options markets. Plus, what could the 2024 U.S. presidential election mean for Bitcoin? Show highlights: What are options and why they are significant for bitcoin ETFs How they will affect the price of BTC When options will actually launch and what needs to be done How the launch of IBIT options could lower Bitcoin volatility and compress spreads Whether dominant players in derivatives will suffer from this launch How the launch of options could lead to an “altcoin boom” Why Josh thinks the SEC delayed its decision on ether ETF options How rising Bitcoin options interest could trigger volatility during major options expiries What Josh thinks the impact of the US presidential election will be on the markets Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Coinbase iTrustCapital Polkadot Mantle’s FBTC Guest: Joshua Lim, Co-founder and CEO of Arbelos Markets Links Approval for BlackRock’s IBIT The Block: Bitcoin ETFs set to attract liquidity and speculation as IBIT options trading gains approval CoinDesk: BlackRock Bitcoin ETF Options to Set Stage for GameStop-Like 'Gamma Squeeze' Rally, Bitwise Predicts Decrypt: SEC Hits Pause on Ethereum ETF Options Following Bitcoin Nod - Timestamps:  00:00 Intro 01:48 What Bitcoin ETF options are and why they’re significant 05:41 Impact on BTC price 08:17 When Bitcoin ETF options will launch 10:03 How IBIT options could reduce volatility 15:53 Will dominant players in derivatives be affected? 20:40 How options could trigger an altcoin boom 24:12 Thoughts on potential ether ETF options approval 24:47 Rising Bitcoin options interest and volatility risks 28:22 Impact of the 2024 US election on crypto markets 31:48 News Recap Learn more about your ad choices. Visit megaphone.fm/adchoices

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

This episode of The Scoop was recorded with US Senator Tim Scott (R-SC) and Falcon X Global's Head of Revenue and Business Austin Reid live at the SALT Conference in Jackson Hole. Senator Scott and Reid discuss the growing political interest in crypto and digital assets in the United States, and the need for better education that clearly conveys the value proposition of this new form of technology. OUTLINE 00:00 Introduction 00:40 Crypto's Political 03:05 Trump's Crypto Shift 04:23 US Regulatory Landscape 08:06 Crypto's 'Branding' 16:23 Bipartisan Crypto Support 18:23 Harris' Crypto Policy 19:48 SEC Leadership Change This episode is brought to you by our sponsor Polkadot Polkadot is the blockspace ecosystem for boundless innovation. To discover more, head to polkadot.network The Block Community The Block is launching a new community experience for fans of The Scoop! Follow us on Lens to stay in the loop: hey.xyz/u/theblockcommunity The Block Newsletters The Block's newsletters bring you the latest news and analysis of the fast-moving crypto and DeFi markets. To subscribe, visit theblock.co/newsletters

Austin Reid

Global Head of Revenue and Business

FalconX

Austin Reid is the global head of revenue and business at FalconX. In this episode of The Scoop, Reid discusses why we are still at the 'early stages' of institutional adoption of crypto, and the role retail traders have played in the market's current rally. OUTLINE 00:00 Introduction 04:12 Market Overview 08:06 FalconX Volume 12:03 Crypto Derivatives 15:55 Interest Rates 19:19 Institutional Adoption 22:10 ETF Flows 26:49 Retail Flows 32:51 Market Maturation 35:06 Exchange Improvements 39:25 Closing Thoughts

Austin Reid

Global Head of Revenue and Business

FalconX

Aya Kantorovich is the co-CEO and co-founder of Fractal, which is an infrastructure provider enabling institutions to clear, settle, and margin digital asset trades on-chain. In today's podcast, Aya shares her founder journey at Fractal, the impact of the FTX collapse on institutional players, DeFi growth since many CeFi companies imploded, how Fractal is red-pilling institutions, as well as her prediction on how many institutions will be cosseting crypto and having tokens on the balance sheet in 5 to 10 years time and so much more. But first, Aya tells us about her crypto journey thus far.

Aya Kantorovich

Co-CEO and Co-founder

FractalAugustFalconX

2021 was a landmark year for Genesis Global.  The trading firm — which operates a wide-range of businesses spanning lending and prime services — clocked in more than $100 billion in spot crypto volumes in 2021. On the lending side of the house, cumulative loan originations stood at more than $130 billion.  On this episode of The Scoop, head of derivatives at Genesis Joshua Lim helped unpack the dynamics shaping the market behind its headline Q4 numbers. In addition to a compression in the popular, and once very juicy, basis trade, Lim explained that the market became more dynamic with big new hedge funds entering the fold. At the same time, existing participants become more engaged with the market – holding crypto on their balance sheet for not just investment purposes, but for operational use as well. “It could be linked to receiving payments denominated in tokens from projects that they had executed for other firms. It could be related to running nodes on a blockchain,” Lim said. “It could be more traditional kind of crypto native use cases like receiving a percentage of whatever assets under custody as sort of a revenue stream.” “We saw those types of firms really engaging on derivative hedges that would, you know, protect them on the downside, which was actually kind of useful.” Lim added that as more firms enter the space through the metaverse and non-fungible tokens (NFTs), demand for such hedging tools could extend beyond the crypto native investors that Genesis is used to dealing with. The firm has already started accepting NFTs as collateral for certain loans. Still, it’s early days for NFT-related lending.  “It's not something that we do on a regular basis,” Lim said. “I think from a business perspective, it's still, let's say, less than 50 basis points of our overall lending business in terms of the magnitude of the collateral value. Episode 8 of Season 4 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Joshua Lim, Head of Derivatives at Genesis Global Trading. Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com. This episode is brought to you by our sponsors Fireblocks, Coinbase Prime & Chainalysis Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit www.fireblocks.com.

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

Genesis Global Trading—the New York-based crypto firm that bills itself as a prime brokerage—turned over more than $8 billion worth of derivatives last quarter.  Joshua Lim is the man behind those billions as the firm's Head of Derivatives. Lim joined The Scoop this week to unpack Genesis' second quarter report, explaining how new preferences among investors and traders have shaped the make up of derivatives. He told The Block's Frank Chaparro that the growth of crypto-native hedge funds have increased their need for derivatives, including options and futures, to hedge their positions.  "I think it's mostly crypto negative hedge funds that we deal with that were more willing to engage with us on hedging strategies," he said. As bitcoin was approaching $55,000, he said many were "looking for attractive pricing on the implied volatility across two different strikes such that they could buy some cheap sort of protection for their portfolio." That desire to hedge among crypto players was echoed in Genesis' report, which was released Wednesday: "As BTC/USD marched to new highs in April, a number of our forward-thinking crypto-native hedge fund and corporate treasury counterparties meaningfully stepped up their systematic put-hedging programs." As for the second-quarter specifically, Lim pointed out a number of trends that played out, including the tightening of the spread between spot and futures and a reversal of the popular basis trade that aims to profit from that spread.  In this episode Lim also unpacks: How the derivatives market in crypto evolved from linear products to a wide-range of products How the spread between spot and futures can indicate how frothy the market is The big takeaways from Genesis' second quarter report What needs to happen in the NFT market for it to support derivatives The emergence of market neutral strategies in crypto Episode 45 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Genesis Global Trading's Head of Derivatives Joshua Lim. Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com. This episode is brought to you by our sponsors Eventus, Kraken, and Exodus Eventus is the leading global provider of multi-asset class trade surveillance, transaction monitoring and market risk solutions. Eventus offers a powerful, award-winning trade surveillance platform that is easy to deploy, customize and operate. Eventus is proven in the most complex, high-volume and real-time environments and supports many of the industry’s leading crypto exchanges including Coinbase, Gemini, ErisX and OSL. The company’s rapidly growing client base relies on Eventus’ responsive support and product development teams to overcome its most pressing regulatory challenges. About Kraken Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today. About Exodus Exodus is leading the world out of traditional finance by building beautiful and user-friendly crypto products. Forget having to learn the nuances of different cryptocurrencies. Exodus is designed for everyone and hides the complex details behind a beautiful and intuitive interface.   Buy and sell one cryptocurrency for another from the comfort of your wallet, in seconds. Funds remain under your full control.   Secure, manage, stake, and exchange all of your favorite cryptocurrencies from one wallet. No account registration is required. Download Exodus at Exodus.com or directly from Google Play and the iOS App Store and you’re ready to go.

Joshua Lim

Head of Derivatives

FalconXArbelos MarketsGenesis Global Trading

Aya Kantorovich, head of institutional coverage at FalconX, has been experiencing a bit of déjà vu.  Kantorovich, a former associate at crypto hedge fund Pantera, joined The Scoop to unpack the crypto market's recent bouts of volatility and how the market is stuck in a cycle of retail-led drawdowns. FalconX — an aggregator of crypto trading flows — has a window into both the retail and institutional market.  According to Kantorovich, liquidations across off-shore market venues, cascading liquidations, and the inability for traders to access crypto exchange platforms drive prices down. When money can't move around, price drawdowns are amplified.  "We saw $2 billion worth of liquidations happening across BTC," she said. "Retail liquidations was a large portion of this ... and then a cascading effect." "When you have this level of heightened volatility you see some exchanges begin to shut down their trading capabilities and when these centralized trading platforms shut down those capabilities then traders don't have the ability to top off on their margin so you see a continued cascade," she added.  Kantorovich doesn't think this is a cycle that will break because many new institutions have to sell when the price reaches a certain threshold. Unlike crypto native whales, which have driven the buying at the dip, large billion-dollar plus asset managers "have a completely different level of drawdowns that they're allowed to maintain." "Let's say the market falls down by 30%, they have a fiduciary obligation to take money off the table," she said. "These aren't the momentum diamond hands that we're so used to seeing in crypto." "I think the reason for that is we are going to continue to see institutions that do not have a momentum-long venture persona ... and that could be both good or bad for the space." This episode is brought to you by our sponsors Eventus, Kraken, and Exodus Eventus is the leading global provider of multi-asset class trade surveillance, transaction monitoring and market risk solutions. Eventus offers a powerful, award-winning trade surveillance platform that is easy to deploy, customize and operate. Eventus is proven in the most complex, high-volume and real-time environments and supports many of the industry’s leading crypto exchanges including Coinbase, Gemini, ErisX and OSL. The company’s rapidly growing client base relies on Eventus’ responsive support and product development teams to overcome its most pressing regulatory challenges. About Kraken Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today. About Exodus Exodus is leading the world out of traditional finance by building beautiful and user-friendly crypto products. Forget having to learn the nuances of different cryptocurrencies. Exodus is designed for everyone and hides the complex details behind a beautiful and intuitive interface. Buy and sell one cryptocurrency for another from the comfort of your wallet, in seconds. Funds remain under your full control.  Secure, manage, stake, and exchange all of your favorite cryptocurrencies from one wallet. No account registration is required. Download Exodus at Exodus.com or directly from Google Play and the iOS App Store and you’re ready to go.

Aya Kantorovich

Co-CEO and Co-founder

FractalAugustFalconX