Crypto-focused hedge funds are increasingly shorting U.S. dollar-pegged stablecoin Tether (USDT) amid a bleak market outlook nearly a month after the implosion of terraUSD (UST), WSJ said in a report on Monday.
“There has been a real spike in the interest from traditional hedge funds who are taking a look at tether and looking to short it,” Leon Marshall, head of institutional sales at Genesis, said in a statement. Marshall added the positions were worth at least “hundreds of millions” of dollars.
Genesis said short positions increased after the multi-billion dollar implosion of UST. Prices of the algorithmically-controlled stablecoin plunged to a few pennies in late May, causing contagion risks damaged within the crypto space that affected prominent crypto lenders and trading funds.
Some funds are shorting USDT as a bet on the broader economy as the U.S. Federal Reserve raises interest rates to curb 40-year-high inflation. Others are concerned about the quality of the assets...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...