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 within the cryptocurrency markets. These funds aim to maximize returns through numerous strategies, together with long-term holdings, active trading, arbitrage, zaramea01 and initial coin choices (ICOs). Unlike traditional hedge funds, which may need a broad mandate, crypto hedge funds specialize within the complexities and dynamics of crypto markets.
Bitcoin: The Anchor Asset
Despite the proliferation of cryptocurrencies, Bitcoin remains the bedrock of most crypto hedge fund portfolios. Its market leadership, liquidity, and standing as a digital gold customary make it a comparatively safer and more stable investment within the crypto space. Most crypto hedge funds keep 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 remains the bedrock of most crypto hedge fund portfolios. Its market leadership, liquidity, and standing as a digital gold customary make it a comparatively safer and more stable investment within the crypto space. Most crypto hedge funds keep a significant portion of their assets in Bitcoin as a hedge against the volatility of smaller altcoins.
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