"The House Always Wins": These Funds Made A Killing As Bitcoin Plunged

Volatility, neutral exposure and market making can still pay - at least for crypto hedge funds.

Despite the fact that cryptos have collapsed across the board so far in 2018, one investing axiom still holds true to this day: the house always wins. Those who have been making a market, keeping neutral net exposure and benefiting from exotic methods of trading cryptocurrencies have continued to have a positive year this year despite the fact that a lot of the underlying cryptocurrency assets have had a terrible year.

Bloomberg reported on Thursday:

Funds specializing in virtual currency market making and arbitrage strategies delivered first-quarter gains even as their mostly bullish peers lost 40 percent on average. That’s a big reversal from last year, when digital assets soared and market-making funds lagged far behind their long-biased counterparts.

Pivot Digital Trading-2, managed by Hong Kong-based Amber AI Group, generated some of the biggest gains among cryptocurrency funds that avoid directional bets. It rose 4.3 percent in March to bring its first-quarter return to 30 percent, according to the firm. Market Neutral Liquidity SP-Institutional, domiciled in the Cayman Islands, earned 5.6 percent in the first quarter, said Cedric Jeanson of BitSpread Group, investment adviser to the portfolio.

The man behind the curtain continues to get his take. The increased volume that comes with crypto's plunge may not be great for traditional “buy-and-hold“ crypto funds or retail investors who only have the means to hold long, but that did not stop market makers, net neutral funds and volatility bettors from cashing in. The article continued: 

The results suggest some managers are finding ways to profit from wild swings in cryptocurrencies without having to predict whether they will rise or fall. Such tactics may appeal to investors who want exposure to cryptocurrencies without their extreme volatility.

Here's a full list of funds that weathered the storm and the methods they used, courtesy of Bloomberg:

Bloomberg profiled two of the listed funds:

PDT2, as the Amber AI fund is otherwise known, trades the 25 largest digital currencies on exchanges including Huobi, OKEX, Bitfinex, Binance, Kraken and BitStamp, said Tiantian Kullander, one of the four former Morgan Stanley traders who started the firm with a one-time programmer at Bloomberg LP, the parent of Bloomberg News.

The fund began trading early this year and oversees about $25 million, said Kullander. Its quantitative trading strategies include market-making, short-term trend following and exploiting pricing discrepancies between different currency pairs and exchanges.

Market Neutral Liquidity SP-Institutional, with more than $100 million of assets under management, makes markets for currencies such as Bitcoin, Ethereum and Ripple, BitSpread’s Jeanson said.

Back in February, we monitored the situation when bitcoin and other cryptos began to crash - only to then rebound just days later. 

Despite bitcoin and other cryptos catching a bid off of the crash, it still remains an ugly year. According to Bloomberg, bitcoin is now trading for about $8,355 - which while well above the YTD lows, is still several thousand dollars below the $12,500 level where it started the year, and the near $17,000 level it peaked early this year. 

Comments

Twncpcone Seasmoke Sat, 04/21/2018 - 19:47 Permalink

 

Each supposed 727 and 767 plane of 9-11 had over 60+ miles of time stamped wiring. Every linear foot has a digital marking to ID the exact plane.  Guess what?  NOT ONE single piece of wiring was found from ANY of the 4 supposed planes from ANY of the 4 supposed locations.  NOT ONE SINGLE PIECE.  Twncpcone.  The war on terror is a staged fraud.  

Every day we hear another story about fake news, crisis actors, false flags, staged events, staged shootings yet for some reason we can't fathom that 9-11 was staged by the same exact authority figures for world control.  Twncpcone.  There were no commercial plane crashes on 9-11.  Twncpcone.

 

The reason that NOT ONE single piece of metal, time stamped part out of a possible 13 million have EVER been found at ANY of the 4 locations from ANY of the planes of 9-11 is because there were no commercial plane crashes on 9-11.

The reason that government agents will use tactics of conspiracy theory, ad hominem put downs, childlike ridicules and threats, CONSTANT misdirection and subject changing, disinformation and misinformation, and many types of exclusionary tactics (eg. you not from NY so you are excluded from speaking about it, or you don’t have an advanced degree in demolitions and cannot speak about it etc)all of these are use to keep you away from understanding there were no commercial plane crashes on 9-11.

The reason Bush stated to the UN within 45 days after the attack that ...."we cannot allow for wild conspiracy theories about 911" which he was referring to the theory that there were no commercial plane crashes on 9-11 is because there were no commercial plane crashes on 9-11.

The reason the FBI claimed to have recovered 95% of the plane in Shanksville after only 2 weeks even though not ONE single piece had a serial number or was physically verified by ANYONE at the site the day of 9-11 is because there were no commercial plane crashes on 9-11. (Authorities have said that 99% of the plane was physically BURIED in the earth and thats why the debris could never be seenthat would be a first in aviation history if true.)

The reason that the UNBURNT passports, IDs, bandanas, and other artifacts seem only to prove the hijackers were aboard the planes (an EXPIRED drivers license was found for someone other than a hijacker) is because there were no commercial plane crashes on 9-11.

The reason CDI, Controlled Demolition Inc, was seen inside the WTCs on Saturday Sept 8th and Sunday Sept 9th 2001 doing cabling work during the first ever power downs of the WTCs to plant explosives was because there were no commercial plane crashes on 9-11.

The reason the NIST report was eventually published (headed by a Former Bush oil explorer worker from 20 years earlier) claimed a NEW never before seen or experienced phenomena known as thermal expansion of steel was used to explain the collapse of the WTC 7 building at free fall speed on 9-11....was because there were no commercial plane crashes on 9-11.

 Only debris can verify a plane crash and not ONE single piece has ever been verified because there were no commercial plane crashes on 9-11.

The reason you are shown a photo of debris vs. being allowed to verify the serial number on the debris is because there were no commercial plane crashes on 9-11.

The reason agents say there will never be any verifiable debris is because the speed of the planes were so fast on impact had never stopped any other plane from ever being verified before and they were traveling even faster is because there were no commercial plane crashes on 9-11.

The reason agents will show you an engine which is 10 times too small and then never allow physical verification is because there were no commercial planes crashes on 9-11.

The supposed engines were 6ft by 9ft and the size and weight of a small bus.  Not one was found and not one has ever been physically verified by anyone of earth.  Twncpcone.

 

 

In reply to by Seasmoke

Bitchface-KILLAH ThinkerNotEmoter Sat, 04/21/2018 - 20:55 Permalink

In a post on the other Bitcoin thread, someone said that Bitcoin and other cryptos "have an infinite supply".  I can't begin to explain how stupid this is... whatever some of you have been doing the past few years it is safe to say it was not reading.  This is as dumb as saying that silver has an infinite supply because you can melt all the Morgan Dollars down and make silver dimes, and you can melt those down to make even more silver earings.  NOT UNLIMITED.  In fact, artificial, algorithmic scarcity is better than natural physical scarcity.  We don't know exactly how many grams of gold are on Earth.  We know with absolute certainty there are only 21 million Bitcoins ever.

In reply to by ThinkerNotEmoter

centipede Bitchface-KILLAH Sat, 04/21/2018 - 21:39 Permalink

Nonsense, There is no algorithmic scarcity at all. The algorithm is public domain and anybody can use it to create new cryptocurrencies using the same algorithm or even better one. Anybody can even create new cryptocurrency with only one coin and trade just fractions. Is that currency going to be worth the whole market cap of bitcoin just because of "scarcity" 1/20mil in comparison to bitcoin? You do not realize that what is potentially unlimited with cryptos is the whole number of them. There can be unlimited number of cryptos (the same or even better than bitcoin) with limited number of coins. This cannot solve problem of scarcity. How is it scarce, if you have different names bitcoin1, bitcoin2, bitcoin3, ... bitcoinN with basically the same algorthm, the same number of coins and N can go to infinity? Don't you get it? There is already almost 1600 cryptos and growing. Why is bitcoin so special? Because of the fancy name? It is pure gamble.

And do not start with the blockchain technology. I have heard it all and it doesn't change anything I have said. With bitcoin you are not buying any patent or right to profit from the technology. You are buying only a number. That's all.

In reply to by Bitchface-KILLAH

Bitchface-KILLAH centipede Sat, 04/21/2018 - 22:12 Permalink

My god... the years have not cured the density here!  There is no reason that your computer has to be using TCP/IP either!  It is because of network consensus that it does.  You are free to re-create Bitcoin as many times as you like, many people have.  Nobody uses them, nobody cares about them, they have no value and they never will.  For all intenets and purposes, there are about 10 different crypto-currencies in existence.

In reply to by centipede

centipede Bitchface-KILLAH Sun, 04/22/2018 - 00:21 Permalink

But what you obviously do not understand, that there is absolutely no rational reason why bitcoin is the ONE. There is no rationality in the whole concept of scarcity of cryptocurrencies and the choice of the particular one. It is based only on the fact, that bitcoin was the first and on a whim.

And no, there is very good reason, why my computer is using TCP/IP. Because it is useful, cheap and there are not too many equally good or better alternatives unlike with cryptos.

In reply to by Bitchface-KILLAH

TheEndIsNear LSD - Lower Sl… Sat, 04/21/2018 - 20:58 Permalink

Actually Twncpcone is right. Only the Mossad (ie; the "Dancing Israeli's) have video footage of the impact of the first aircraft into the first of the two WTC towers that were demolished with explosives, but if you look at close up footage of the second aircraft to strike the second building it is clearly a military aircraft (undoubtedly remotely controlled) instead of a commercial airliner because it was black in color, had no windows, and there were two bulges on the underside of the aircraft that only certain military aircraft have.

The Pentagram could not have been hit by a commercial airliner because it is impossible for an aircraft with a wide wingspan to fly at high speed close to the ground; ie, it would violate the aerodynamic principle called "ground effect". In order for commercial aircraft to land they have to slow down to almost stall speed just before touchdown. As Twncpcone says, there was no debris of any kind suggesting a commercial airliner loaded with passengers, luggage, seats, massive engines and landing gear found at either the Pentagram or at Shanksville. There was however what appeared to be the turboprop of a Global Hawk cruise missile at the Pentagon, and there is eyewitness testimony of a cruise missile exploding and creating the gash in the earth at Shanksville where there were also no signs of the debris left from a commercial airliner crash; ie, no dead bodies, no nothing except a smoking hole in the ground. Airliners have rammed into mountains at full speed, most recently in Venezuala and it creates a debris field hundreds of yards around the impact site containing bodies, seats, luggage, aircraft parts, etc., but none of that existed at the site of the supposed Shanksville crash site.

Dick Cheney and all the dual Israeli/Americans in high government positions of power as well as most of all the known people involved in 9/11 including the Mossad and the US deep state made a great many mistakes in carrying out the events of 9/11, but the general public is blissfully unaware of them. Did I mention there was thermate residue in every sample of the powered concrete found in the aftermath of the demolition of the World Trade Center towers?  Like Twncpcone, I could go on and on and on and on with facts that contradict the official story that only mindless TeeVee addicted zombies believe. 

 

In reply to by LSD - Lower Sl…

Twncpcone TheEndIsNear Sat, 04/21/2018 - 21:06 Permalink

And yet you still say  "first aircraft and second aircraft".  Twncpcone.  There were no aircraft.  They lied.  It means there is no war on terror.  Its over.

 

Twncpcone means there were no people, with particular religions, that maintain the never ending global war on terror.  They lied.  Twncpcone.  You no longer have to say 1st and 2nd aircraft.  They lied.  Twncpcone.

In reply to by TheEndIsNear

Twncpcone Oxbo Rene Sat, 04/21/2018 - 20:28 Permalink

Notice how many people cannot stand the end to the war on terror.  They will fight to the death for the right to kill millions in a never ending global war.  Welcome to the military.  Thats what they do.  Twncpcone.  Good luck.

 

Just before the staged events of 9-11 the leaders talked about a 'new pearl harbor' to help move along the new war on terror.  Then came 9-11.  What that does is it forces you to completely reexamine pearl harbor with a fine tooth comb.  If 9-11 was staged and they needed a NPH to do it, it means that Pearl Harbor was also staged.  Do your own research and try and physically verify that the Japanese had anything to do with Pearl Harbor.  Just like Bin Laden it will not exist.

In reply to by Oxbo Rene

ItsAllBollocks Twncpcone Sat, 04/21/2018 - 21:19 Permalink

Wow. I can't believe the amount of anger and venom attacking this post. I agree it's off topic but it's also factual. As the perpetrates of this anger and venom are so adamant the poster is wrong I can't help but wonder who really are the trolls? I've never seen such aggression posted here before and I'm afraid I cannot see another possibility.

In reply to by Twncpcone

Twncpcone ItsAllBollocks Sat, 04/21/2018 - 21:31 Permalink

As listed in the examples.....trolls will do everything they can to maintain commercial plane crashes on 9-11.  The war on terror is a multi-trillion dollar industry and allows government and military control on a global basis.  There are trolls everywhere and they are very easy to spot.  Profanity usually gives it away though they are learning.

 

Understanding twncpcone allows everyone on earth to end the war on terror and many will dislike that.  Especially those in control.

In reply to by ItsAllBollocks