Cryptocurrency hedge funds raise liquidity to the highest level in nearly a year
Some funds are now holding very high cash reserves, with some reaching zero exposure to both BTC and ETH for the first time in history
Main reasons: • Decline in risk-adjusted returns • Weak profitability of Basis trades • Shift towards investing in crypto company stocks instead of the assets themselves • Uncertainty in the macroeconomic outlook
When smart money chooses to sit on the sidelines… it reflects a highly cautious environment
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Cryptocurrency hedge funds raise liquidity to the highest level in nearly a year
Some funds are now holding very high cash reserves, with some reaching zero exposure to both BTC and ETH for the first time in history
Main reasons:
• Decline in risk-adjusted returns
• Weak profitability of Basis trades
• Shift towards investing in crypto company stocks instead of the assets themselves
• Uncertainty in the macroeconomic outlook
When smart money chooses to sit on the sidelines… it reflects a highly cautious environment
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