While Bitcoin gets stalling, clever investors rely on stock exchange tokens
While Bitcoin gets stalling, clever investors rely on stock exchange tokens
- Bitcoin did not have the best start in one year and has dropped by 45 percent compared to its all -time high, which causes investors to explore other sources of income.
- Some institutional investors have revealed that their secret for continuous income is to invest in native Exchange tokens such as FTT by FTX and Unus Sed Leo from Bitfinex.
The cryptocurrency market has still recovered since it fell from its all -time highs in November last year. Bitcoin and Ethereum have dropped by 45 percent, while Solana and Polkadot are 65 percent below their records. In this declining market, investors have to become creative in their investment in order to further increase the income. As some institutional investors unveiled, their unique strategy consisted of investing in local stock exchange brands that were somewhat immune to burglary.
As CNF reported, Bitcoin's status has recently been exposed as a safe port, with the turbulence in Eastern Europe unveiling how much BTC is connected to the overall market. The 60-day correlation from BTC to the S&P 500 was also on a record high with 0.6 Read more
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Jeff Dorman, Chief Investment Officer at Arca, a fund manager for digital assets based in Los Angeles, commented:
For some reason, people still think that Bitcoin is a defensive asset, although he has absolutely no properties of defensive assets. Things that should be defensive are exchange stamps because there are real income, cash flows and amortizations.
For Arca, the strategy has invested in exchange tokens, and one of the largest bets was on Unus Sed Leo, the native token from Bitfinex. Arca invested $ 3 million in the token for $ 1 per token in 2019, shortly after Bitfinex introduced him to support his liquidity crisis. Jeff describes this investment as "one of the best risk and earnings investments" that the company has ever made. Later the company sold its investments for $ 5.50 per token.
At a time of extreme volatility, stock markets were the biggest winners, says Dormans. He tells Bloomberg:
Who basically benefits from volatility? The stock exchanges. Exchange [tokens] should cut off above average because their volume and their income increase.
Another stock exchange token that has proven to be rather resistant is FTT, the native token of the FTX exchange led by Sam Bankman-Fried. The trading platform for derivatives has moved into the spotlight with a number of sports partnerships in recent years, not least due to the name law of $ 135 million with the Miami Heat NBA franchise.
Clara Medalie, research director at Kaiko, a company for cryptodata, commented:
The token of FTX correlates strongly with any positive reporting. FTX had a better year than most other exchanges that have their own stock market tokens, so it is not surprising that FTT is positive.
"clever investors invest in stock exchange tokens," summarized Dorman from Arca. "Certainly everyone who carries out a real fundamental analysis and takes care of the growth of real business."
Source: Crypto-news-flash.com
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