Cryptocurrencies
Quant Fund Kbit Says Stay in Crypto Despite Quick Returns From ETFs
- Basis trade tied to crypto ETFs is popular among hedge funds
- Kbit was founded by former Citadel director Ed Tolson in 2017
Kbit uses a market neutral trading strategy that seeks to profit from both increasing and decreasing prices while seeking to minimize overall market risk.
Photographer: Christopher Pike/BloombergThis article is for subscribers only.
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.“