3 articles
Suspicion of insider trading is mounting around prediction markets like Kalshi, fueled by uncanny bets and a complex regulatory environment. While distinct from stock market laws, the CFTC oversees these derivatives, facing high bars for proving illicit activity.
Michael Saylor argues that the cryptocurrency market's lack of a fully developed non-rehypothecating credit system is suppressing Bitcoin's price. He explains how rehypothecation, the reuse of collateral, enables high leverage and the creation of synthetic positions that can distort the spot price.
Wall Street's growing use of Bitcoin derivatives like futures and options is creating a 'synthetic supply' that could dominate price discovery. This financialization mirrors traditional assets, introducing amplified volatility and complexity for investors.
