crypto activity is interesting to me because it captured the attention of the most risk-seeking actors and also the ones with the most thirst for right skew. archegos and crypto are related but for totally different reasons, the risk market is currently in a schism of sorts https://twitter.com/kennethdredd/status/1387359619119390720

pre-crypto a lot of the smaller participants who take a lot of risk would be doing it in stocks, and for the most part they do it in a way thats sorta noisy. a lot of people taking a lot of different risks. archegos was opposite, one large participant taking big concentrated risk

on the right side of the dist, crypto acts as a hype/speculative pressure relief. it clips the right tail off speculative stocks. on the left it starves HFs of counter-parties for their shorts, leaving them playing against bigger hype-merchants like ARK or archegos or similar

sure we had that little wave of YOLO buyers but the smaller or non-insto participants with crazy risk-tolerance found a better sandbox to play in. that goes for skew buyers wanting to buy into disruption and deep right tail outcomes and now also the carry degens via yield-farming

the levered carry buyers (levered XIV or short VXX or VXX call-sellers or MORL buyers or margined yield-co buyers have a new arena, and that takes any potential blow-ups *out* of the stock market. crypto is clipping the tails out of the traditional exchange ecosystem.

these participants dont like the SEC (or broker-dealer compliance) nanny-state and went to a place where they can take the level of risk they want to take. and for better or worse that risk is over there now, away from traditional markets. i think that accrues to stability tbh