Step 4: Catalyst
When the unwind begins — whether triggered by volatility, regulation, or a macro shock — the same institutions will say “no one could’ve seen this coming,” despite having quietly hedged or exited earlier.

Step 3: Distribution
While retail and mid-tier institutions get excited about access, smart money offloads exposure through those very pipes. Selling into strength, using liquidity created by ETF inflows, while keeping narratives bullish.

Step 2: Collateralization
Once those products exist, they can use them as collateral to lever up or offload risk. JPMorgan accepting crypto ETF collateral isn’t bullish — it’s a setup for transferring risk.

Step 1: Legitimacy
Big players lobby for regulatory clarity and institutional products — spot ETFs, collateral eligibility, lending access. This attracts slow money: pensions, RIAs, wealth managers.

But unlike a house, Bitcoin can drop 20% in an hour. When volatility meets leverage at scale, the result isn’t a correction — it’s a liquidation cascade. This is no longer a fringe asset class. Crypto is being wired into the plumbing of TradFi. When the blowoff ends, the unwind won’t stay contained.

Now we’re watching that same pattern unfold in crypto. JPMorgan just announced it will allow clients to borrow against crypto ETFs as collateral — effectively institutionalizing crypto-backed leverage. That includes Bitcoin trusts being treated like treasuries or real estate.

I don’t think so though I have bitcoin as well