ETC Group says crypto hedge funds’ bitcoin exposure has recently dropped
Quick Take
- Crypto hedge funds’ bitcoin market exposure has dropped to levels not seen since October 2020, according to an analyst report from ETC Group.
Crypto hedge funds' bitcoin market exposure has dropped to levels not seen since October 2020, according to ETC Group data.
"Crypto hedge funds have really thrown in the towel on bitcoin lately. They have reduced their bitcoin market exposure to only 0.37 over the past 20 trading days, the lowest level since October 2020," ETC Group Head of Research André Dragosch said.
Dragosch said that it is difficult to ascertain the major factors behind this drop in exposure, as the crypto hedge fund industry consists of many different strategies that could be both directional and market-neutral.
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"But, what we can say is that the aggregate net long exposure by these crypto hedge funds relative to bitcoin as a benchmark has significantly declined," he told The Block.
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