From Bitcoin to Altcoins: Asset Allocation Strategies in Crypto Hedge Funds
Crypto hedge funds are investment vehicles that pool capital from accredited investors to participate in the cryptocurrency markets. These funds aim to maximise returns through numerous strategies, including long-term holdings, active trading, arbitrage, and initial coin offerings (ICOs). Unlike traditional hedge funds, which may need a broad mandate, crypto hedge funds specialize in the complexities and dynamics of crypto markets.
Bitcoin: The Anchor Asset
Despite the proliferation of cryptocurrencies, Bitcoin stays the bedrock of most crypto hedge fund portfolios. Its market leadership, liquidity, and zaramea01 standing as a digital gold customary make it a relatively safer and more stable investment within the crypto space. Most crypto hedge funds maintain a significant portion of their assets in Bitcoin as a hedge against the volatility of smaller altcoins.
Bitcoin: The Anchor Asset
Despite the proliferation of cryptocurrencies, Bitcoin stays the bedrock of most crypto hedge fund portfolios. Its market leadership, liquidity, and zaramea01 standing as a digital gold customary make it a relatively safer and more stable investment within the crypto space. Most crypto hedge funds maintain a significant portion of their assets in Bitcoin as a hedge against the volatility of smaller altcoins.
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