Decentralized hedge funds rise, Bitcoin breaks down.
Anyone can invest in decentralized hedge funds with more transparency and control.
In this episode Bitcoin breaks down, The ETH 2.0 Merge hype may be over though it’s still 1 month away, our weekly crypto news update, and how investors are looking for other ways to follow professional trading strategies without paying fees to licensed managers.
Hedge Funds are dying. No longer will investors send their funds to a hedge fund, paying 2% management fees and up to 20-30% of profits for others to manage their money behind closed doors. The days of quarterly reports in the snail mail and 10 phone calls with weeks to return funds that are rightfully yours are dead and gone...
Enter decentralized hedge funds. In this new era of trading you can seamlessly switch between publicly proven trading strategies at any time, keep more profits for yourself, and pull out your funds in less than a minute. DeFi is the future!
In this letter I look into two platforms taking hedge funds to the next era, Kryll.io and SolStreet Finance.
I speak to the Head of Strategy at Kryll.io on their vision for the future of trading, how traders implement hundreds of trading strategies without having to move funds off the centralized exchanges and DEX's they already use, and how just how antiquated the old hedge fund model is now.
Kryll has already traded $4B+ on the platform, with over 200 trading strategies available. 100,000 traders have started the shift to this kind of fund management.
For traditional hedge fund managers or just smart traders, they can publicize their trading strategies into these crypto hedge fund platforms and receive a portion of the profits from traders that copy them.
This opens the door for good traders to become hedge fund “managers” without having to worry about holding users funds or providing reports, as everything is self custodial with real-time tracking thanks to the blockchain.
I spoke with a second decentralized hedge fund platform called SolStreet.Finance, built on the Solana blockchain, to see their take on decentralized hedge funds. Their recent fundraising was backed by Coinbase Ventures and have a promising future.
On SolStreet.Finance, traders can invest in funds from different fund managers, or become a fund manager for others to invest in their strategies.
Investors on SolStreet can invest as little as $1 into different funds, only pay fees if their investments go up, and maintain complete control of their funds (non-custodial) for the entirety of their investments. No longer can only millionaires use hedge funds.
SolStreet is more focused on using Solana’s technology and exchanges including Serum DEX, Mango Markets, and Orca DEX, a quickly growing ecosystem.
Decentralized hedge funds are a great way to see public strategies that are doing well (especially in bear markets) and to make extra income if you create have winning trading strategies that others can benefit from.
They’ve also announced the upcoming Wolfie's NFT drop. These NFT holders have increased rewards and functionality on their platform. Learn more about that here.
In other crypto news:
**Ontario crypto exchanges impose $30K CAD annual limit on altcoin buys
Michael Burry (The Big Short) sells 98% of his stock portfolio.
Brazil's largest investment bank BTG Pactual launches its own #crypto exchange, Mynt.
KILT is moving from $KSM to $DOT as the first KSM project to do so - and the only one having a real reason to do so
New York's Deputy Mayor Phil Banks owns #Bitcoin
A16z invests $350M in WeWork co-founder and former CEO Adam Neumann's new housing venture
20 year old student makes $130M on BBBY 0.00%↑ , Bed Bath and Beyond, as it short squeezes from $5 to over $25.
USDT Tether Reveals 58% Decrease in Commercial Paper Holdings in Latest Attestation
Ripple launches crypto-enabled enterprise payments in Brazil with Travelex Bank
Turkey’s central bank cuts interest rates despite inflation at 79,6% (24 year high) and the lira trading near a record low.
Technical Analysis:
As expected, Bitcoin broke downwards out of the bull flag pattern, and with it followed ETH and all of the altcoins. The hype around the Ethereum Merge to 2.0 faded away as ETH reached $2000 for a minute and now has dropped back to below $1700.
I expect BTC to consolidate between the light green lines into September and hopefully continue to rally upwards after then, barring more FUD or regulatory news.
P.S. The buy/sell indicators on the chart can be found using my favourite TA tool Birbicator Pro. Learn more about it here.
I was also closely following the ETH and SOL charts. ETH was breaking higher and out gained Bitcoin this past month because of the news to ETH 2.0, and Solana I followed closely because it had a bear signal on the charts while others still had a bull signal. I mentioned in my last newsletter that profit taking would occur as ETH reached $2000, and that happened exactly as planned. Because of the BTC and ETH price move down, the entire market moves downwards with the drop of these coins, but we are not down and out as I expect more boring sideways movement and slow moves back up over the coming weeks. That said, the BTC Dominance chart is still trending down, a positive sign for Ethereum and the altcoins.
Ashton Addison
-CEO, Crypto Coin Show