VC Investors Find Complicated Ways to Monetize Locked-Up Crypto
- Venture funds have accumulated large sums of locked tokens
- Firms including Wintermute help investors hedge their holdings
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Cryptocurrency investors are locking in returns from digital assets they’re ostensibly barred from selling by entering into complex arrangements with specialist trading firms.
Venture-capital companies and other investors sitting on tokens that cannot yet be traded on the open market are working with market making firms to hedge their positions, according to seven people familiar with the matter, some of whom declined to be named because the arrangements are confidential.