In the 1920s, there were investment trusts that owned investment trusts.
Multiples on mNAV premiums, of entities with the same leveraged financial engineering that we see in DATs today.
(Eg. in very simple terms: Peanut Trust owns 100k worth of BTC but Peanut Trust is worth 150k. And then there’s a trust that owns Peanut Trust which is worth 250k)
Pantera setting up DAT funds isn’t exactly the same, but similar vibes
The music continues for now, but it’ll stop eventually.
DATs have been a huge contributor to BTC and ETH's strong price action, but its upward reflexivity can equally reverse if (i) demand of shares and its underlying assets, (ii) perceived scarcity, and/or (iii) the leveraged financial engineering that makes this all happen, breaks - similar to investment trusts in the 1920s.
Personally want the party to continue, as I have bags, but we have to be cautious. We’ve seen this happen in history before.
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