Rob Hadick from Dragonfly Capital joins Santiago for a wide-ranging discussion covering market dynamics, regulatory challenges, and emerging infrastructure. The conversation spans Bitcoin's recent rally to $72-73K, the growth of 24/7 tokenized markets, and insider trading allegations on prediction platforms.

They explore the embryonic state of tokenized commodities trading, where platforms like Hyperliquid are processing billions in weekend volume but remain tiny compared to traditional markets. The discussion also covers major crypto fund raises from Paradigm ($1.5B) and Andreessen ($2B), along with philosophical questions about longevity research and living to 150 years old.

Bitcoin Rally and Market Structure Resilience

Bitcoin rallied back to $72-73K with over $1 billion in ETF inflows this week, staying range-bound despite equity market volatility

"If you were looking at the open interest and options volume, you could tell the market was bearish in the near term but quite bullish over the rest of the year" - Rob on derivatives positioning

NYSE's investment in OKX to use as their oracle for spot crypto pricing signals institutional adoption of crypto infrastructure

24/7 Markets Show Promise But Face Structural Limits

Hyperliquid processed $5-6 billion daily over the weekend, with 10-12% in real-world asset markets during the Iran conflict

Gold has the highest tokenized open interest at $163 million, but traditional Comex gold futures trade $50-100 billion daily - tokenized markets remain 0.002% of real volume

"The structural issues for the HIP3 markets still exist - open interest on oil got capped around $20 million over the weekend due to risk concerns" - Rob

Accounting systems at traditional firms create barriers, with many using 20-year-old COBOL systems that can't integrate with tokenized trading infrastructure

Prediction Market Insider Trading Sparks Regulatory Debate

Six new wallets funded within 24 hours of Operation Epic Fury netted $1.2 million combined on Iran strike predictions

Alpha Raccoon hit 22 out of 23 predictions correctly, making $1 million in 24 hours, raising systematic insider trading concerns

"Very clearly, there's insider trading that should not happen in the administration - that might actually require an act of Congress though" - Rob on government officials trading

The CFTC has one-eighth the staff of the SEC for enforcement, creating regulatory gaps despite clear insider trading rules for prediction markets

Crypto Fund Raises Signal Institutional Appetite

Paradigm is raising $1.5 billion, above their $850 million 2024 fund but below the $2.5 billion raised in 2021

Andreessen is raising $2 billion, significantly below their $4 billion 2021 fund, with only 5-6 investors remaining after turnover

"The opportunity set is getting bigger and narrower - far less verticals to put money in, but far more ability to put money into those that scale" - Rob

Dragonfly announced their largest fund recently, with Rob noting that 300-650 range funds from the last vintage performed top decile

Longevity Research and Living to 150

David Sinclair's longevity research, referenced by Bryan Johnson, makes bold claims about reversing aging and living to 150 years old

"If you believe his vision of the future, it's going to be utopia - we're going to be the healthiest, best looking, live forever" - Rob on Sinclair's presentation

The discussion raised concerns about healthcare infrastructure strain, as the last few years of life consume a disproportionate share of medical spending