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 purpose to maximize returns through numerous strategies, together with 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 within the complicatedities 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, zaramea01 liquidity, and status as a digital gold normal make it a relatively safer and more stable investment within the crypto space. Most crypto hedge funds preserve a significant portion of their assets in Bitcoin as a hedge towards 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, zaramea01 liquidity, and status as a digital gold normal make it a relatively safer and more stable investment within the crypto space. Most crypto hedge funds preserve a significant portion of their assets in Bitcoin as a hedge towards the volatility of smaller altcoins.
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