Hedge funds see the crypto market decline as an investment opportunity
From rebalancing cash positions to announcing new investment products, hedge funds seem undeterred by the current crypto market decline. Crypto market capitalization is down more than 40% since its $2.5-trillion high back in early May, but institutional investors continue to pile into the market. Despite Bitcoin (BTC) losing over half of its United States dollar value and altcoins tanking almost 70% on average, big-money players like hedge funds are still taking up digital currency investment positions.From direct exposure to crypto to backing firms developing products and services in the....
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Are hedge funds ready to go all-in on cryptocurrencies? Probably not, but some of them are definitely dipping their toes in. The thing is, those toes are enormous. In the article “Mainstream Hedge Funds Pour Billions of Dollars Into Crypto,” the Wall Street Journal does a deep dive into the phenomenon. And we get a closer look into who’s doing what and who isn’t there yet. According to Coinbase’s numbers, “institutional investors as a whole traded $1.14 trillion of cryptocurrencies in 2021, up from $120 billion the year before, and more than twice the $535 billion for individual....
Despite the current market downturn, the Cornell University computer scientist and professor says he is bullish about crypto. Emin Gün Sirer, creator of the Avalanche blockchain protocol, has said the current decline in crypto prices has not dampened his enthusiasm about the future of the market in general.Speaking to Cointelegraph China, Sirer drew from his “unique vantage point” to offer some of the behind-the-scenes goings-on concerning the growing level of interest in crypto exposure among entities from outside the industry.According to Sirer, everyone from politicians to central banks....
A global survey of Chief Financial Officers has revealed that hedge funds are planning to hold 7% of their wealth in crypto within the next 5 years. Reuters has described the survey results as a major vote of confidence for cryptocurrency assets within the current market environment. The Hedge Funds Crypto Survey Financial administrator Intertrust […]
3AC downfall has led to a multi-billion dollar cascade that has claimed the likes of Celsius, Voyager and many other crypto lending firms with exposure to the hedge fund. Three Arrow Capital (3AC), a Singapore-based crypto hedge fund that at one point managed over $10 billion worth of assets, became one of the many crypto firms that went bankrupt in this bear market. However, the fall of 3AC wasn’t purely a market-driven phenomenon. As more information surfaced, the collapse looked more like a self-inflicted crisis brought upon by an unchecked decision-making process.To put it concisely,....
When it comes to bitcoin and AI, it is impossible to tell what the future will hold. A new breed of hedge funds is coming to Wall Street and other financial areas all over the world. Two new technologies are becoming the next area of focus: artificial intelligence and bitcoin. One interesting example is called Numerai, a hedge fund trading through machine learning models built by scientists paid in bitcoin. It is evident there is a growing demand to access the bitcoin ecosystem without having to buy cryptocurrency directly. On paper, it is not easy to grasp the concept of a bitcoin or AI....