“I think this is the most exciting thing,” says Sinclair. “Everyone has heard of buying puts in fear of a Black Swan, a rare event. Well, the real rare event is finding cheap puts. And that’s what we’ve done here. You can make money buying them in the Bitcoin space alone, which is nice. But the real point is they can become a positive carry disaster hedge. The overall correlation between Bitcoin and equities is not high at around 30% on a daily level. But during the COVID crash, that correlation nearly doubled. It is clear that in a massive panic, Bitcoin does go down with equities. And that’s when buying cheap puts is really going to kick in and help. The point is that these puts are the bargain of the century and a generational buying opportunity.”
