Hedge Funds are Betting Heavily on a Bearish Bitcoin Reversal, Report Shows
Bitcoin’s uptrend over the past few months has been historic, with bulls taking full control of its price action and sending it from sub-$10,000 lows in late summer to highs of $28,500 just a few days ago. After reaching these highs, the cryptocurrency’s uptrend stalled, with the past few days mainly consisting of consolidation as […]
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Hedge funds in Japan and the United States are reportedly buying and offering to buy claims from thousands of account holders of the now-defunct bitcoin exchange Mt Gox, the world’s biggest bitcoin exchange at a time, before its downfall. The Financial Times cites sources to reveal that at least four hedge funds have begun the process of buying or offering to buy claims from account holders at 15 percent of the yen value of the claim, in cash. The hedge funds are betting on bitcoin gaining value, which it has, considerably since the claims were lodged in the aftermath of Mt Gox’s failure.....
Although traditional fund managers remain hesitant about investing in Bitcoin and Ether, their exposure to digital assets appears to be growing. Traditional hedge funds are slowly embracing cryptocurrency investments but are keeping their exposure limited as the market continues to mature, according to new research from PricewaterhouseCoopers, or PwC.In its 4th Annual Global Crypto Hedge Fund Report 2022, PwC said roughly one-third of traditional hedge funds surveyed are already investing in digital assets such as Bitcoin (BTC). So-called “multi-strategy” hedge funds were most likely to....
CME data shows Institutions are long Bitcoin while hedge funds are aggressively shorting BTC. According to CME, the amount of Bitcoin (BTC) long contracts held by institutions are at an all-time high. Yet, CME’s most recent Commitment of Trader report shows hedge funds are at a record-high for BTC shorts.There seemingly is a major difference in the perception of Bitcoin’s short to medium-term trend between hedge funds and institutions.CME Bitcoin futures net open interest. Source: SkewWhy are hedge funds aggressively shorting Bitcoin but not institutions?Hedge funds typically implement....
Few hedge funds are looking forward to buying into Mt Gox claims as they expect Bitcoin price to appreciate further. The victims of Mt Gox are yet to receive the payouts. While they still wait for closure, hedge fund managers are busy digging for opportunities to make money. The reports indicate that few hedge funds in the United States and Japan are planning to buy the claims from Mt Gox victims with the hopes of capitalizing on the appreciating Bitcoin price in the future. According to a report on one of the leading financial news outlets, at least four different hedge funds have started....