Bonds, Inflation and the GBTC Premium with Lyn Alden

 
 
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“If there’s a bitcoin ETF that then trades on a major exchange, the more people can essentially access it than if they’re not willing to buy over the counter products...it should increase overall demand”
— Lyn Alden

SHOW DESCRIPTION

Location: Remotely
Date: Friday 26th, March
Company: lynalden.com
Role: Macroeconomist

This month we have seen the markets signal an expected increase in inflation; while bond prices are a good indicator, Lyn Alden explains that just looking at bonds or the Consumer Price Index (CPI) does not tell the whole story. Price changes can vary wildly in services, commodities, and especially asset prices, but inflation affects different people in different ways.

Outside of inflation, Bitcoiners have been looking closely at the Grayscale Trust (GBTC) recently and specifically the premium. I asked Lyn why people would pay less (or more) than the market price of Bitcoin for shares of GBTC. 

There are several reasons that GBTC is down recently, one of which is the potential approval of a Bitcoin ETF. Canada recently approved a Bitcoin ETF, with significant demand. 

An ETF in the United States is still being held up by regulators, despite increasing applications from institutions like Fidelity. But the rumour is one is right around the corner, and it would likely have significantly more demand than Canada's. 

In this interview, I talk to Lyn Alden, a macroeconomist and Lyn Alden Investment Strategy founder. We discuss bond yields, the effects of the rising inflation rate, the GBTC premium, and potential Bitcoin ETFs.

TIMESTAMPS

00:05:16: Introductions
00:05:23: Bond yield fluctuations
00:10:48: How inflation is measured
00:14:45: Underfunded pensions
00:16:36: Different types of inflation
00:18:13: The housing market
00:19:38: Rising inflation post-lockdown
00:21:52: Shale energy methods and pricing
00:25:20: GBTC premium and closed-end funds
00:38:16: Will there ever be a Bitcoin ETF?
00:47:53: A Looming corporate debt crisis
00:51:20: Greg Foss's theory of Bitcoin as investment insurance
00:52:53: NFTs
00:56:40: The Mike Green/Lyn Alden show
00:57:48: FUD surrounding governments banning Bitcoin
01:03:37: Final comments

 

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SHOW NOTES

Connect with Lyn:

Mentioned in the interview:

Other relevant WBD podcasts:

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