Animal Spirits Podcast Talk Your Book: What's the Latest in Crypto?
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Mar 23, 2026 Krista Lynch, SVP of ETF Capital Markets at Grayscale, who leads crypto ETF and product innovation. She discusses ETFs and in-kind creations. They explore stablecoins as rails and tokenization momentum. The conversation covers staking trade-offs, infrastructure over consumer apps, and how market maturity and regulation are reshaping crypto access.
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Traders Locked Out Caused A 10% Crash Anecdote
- Krista Lynch recounts being with traders who couldn't access phones during a crisis and returned to find auto liquidations had pushed Bitcoin down 10%.
- The story illustrates how retail leverage and lack of access amplified volatility in earlier crypto cycles.
Prefer Staking Through An ETF Wrapper
- Use staking via ETF wrappers rather than staking spot holdings directly to avoid validator selection, third-party costs, and friction.
- Krista explains Grayscale's ETH product stakes and charges 15 bps, making staking accessible without retail complexity.
Liquidity Drives Staking Limits In ETFs
- Liquidity constraints shape how much of an ETF can be staked; Grayscale created a liquidity sleeve so some fund portion remains unstaked to meet redemptions.
- Unstaking queues (~40 days then) forced a model balancing yield vs. two-day ETF settlement mechanics.