While hedge funds are deploying tried-and-true strategies such as the basis trade to profit from the recent influx of US Bitcoin and Ethereum ETFs, the quantitative fund Kbit says sticking within the digital asset world will prove to be more lucrative.
“The larger opportunities, higher return opportunities are in the crypto native markets,” Ed Tolson, founder and chief executive officer of Kbit, said in an interview. “So you have to be exposed to the centralized crypto exchanges, exposed to the trading the tokens, the perpetual swaps, the derivatives themselves.“