Arthur Hayes Maelstrom Fund Balances Bitcoin Bullishness with USDe Hedging Strategy
Markets are eagerly awaiting the highly uncertain political event that is the U.S. election, which is only a week away. Arthur Hayes, co-founder of BitMEX and chief investment officer of digital asset investment fund Maelstrom, is keeping sizable bullish bets on bitcoin, ether, and other cryptocurrencies while using Ethena Lab’s USDe stablecoin to hedge against election risk.
Given the uncertainty, Maelstrom has 5% of the fund in staked USDe (Ethena USD), earning roughly 13%. We maintain our large long positions in Bitcoin, Ether, and other tokens,
Hayes Predicts Bullish Crypto Outlook Beyond U.S. Election and Geopolitical Risks
If the losing side takes to the streets, generating societal turmoil, Hayes anticipates that risk assets, including cryptocurrencies, would experience significant market fluctuation for some time.
If the election comes and goes with no social unrest, the markets will rip and roar. Post the election, once we know who wins, and the other side accepts the results, then we will deploy all sUSDe into crypto,
Hayes
Budget deficits are expected to keep growing regardless of the president; thus, the outcome of the U.S. election is unlikely to have a major impact on Bitcoin’s more general bullish outlook. Gold and bitcoin are seen as safe-haven investments that provide protection from budget deficits, which tend to cause inflation. Beyond the election, risk asset holders may experience immediate suffering if the conflict in the Middle East or Ukraine escalates.
Both Trump and Harris will print money in the trillions of dollars. In the medium term, it doesn’t matter who wins. Crypto will do well. In the short term, the market understands the ways in which Trump will stimulate the economy because that is the traditional way it has been done in the past. Tax cuts combined with business-friendly deregulation but with no cuts in benefits is what he will do,
Hayes
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