ChainCatcher news, YZi Labs announced that Jane He has become a general partner, leading biotechnology investments. Before joining YZi Labs, Jane was an investor and Chief Operating Officer at a hedge fund in Hong Kong, focusing on growth investments in biotechnology and innovation-driven industries.

ChainCatcher news, according to an analysis by SignalPlus head Augustine Fan, the recent sell-off of Bitcoin has been primarily triggered by multi-strategy hedge fund trading that dominates the macro market. These multi-strategy trades include arbitrage, long-short positions, and leveraged operations, aiming to maximize returns across asset classes.In the Bitcoin market, a common multi-strategy trading method is basis trading, which involves buying spot Bitcoin (usually through ETFs) and shorting Bitcoin futures to profit from the price difference. However, when the price difference narrows or the market changes, the profits from basis trading decline, leading to capital exiting positions and concentrated sell-offs of Bitcoin and ETF shares. Fan pointed out that this liquidation pressure has amplified the sell-off over the past week, especially against the backdrop of increased volatility related to tariffs.Nevertheless, the "buying the dip" sentiment still exists in the market. Fan stated that the valuations of stocks outside the major indices remain relatively stable compared to historical averages, and hard economic data may outperform the rapid deterioration of soft data. Therefore, the market generally believes that it is still a "buying the dip" market, expecting to gradually digest the impacts of tariff volatility.

ChainCatcher message, Matrixport analysis indicates that since the launch of the Bitcoin ETF in January 2024, the outflow of funds this month has reached a new high, which may be related to hedge funds closing basis trades (going long on ETFs and shorting futures). This trend is consistent with the reduction of $8 billion in open contracts for Bitcoin futures on the CME after the Federal Reserve's FOMC meeting in December 2024, which exceeds the total inflow of funds into ETFs by 20%.Additionally, the expiration of February futures contracts may also be a source of selling pressure, but this factor has currently been absorbed by the market. Matrixport believes that as the impact gradually weakens, hedge funds may reduce ETF sell-offs and reassess arbitrage opportunities in late March. At present, ETF selling pressure seems to have temporarily halted.

ChainCatcher news, according to a report from Matrixport, the recent market adjustment of Bitcoin is mainly influenced by hedge funds rather than Wall Street investors. The report indicates that at least 25% of Bitcoin ETF funds are related to arbitrage trading, with as much as 55% of ETF fund inflows coming from hedge funds focused on arbitrage rather than long-term investors.Since the Federal Reserve's Open Market Committee meeting in December, the significant decline in arbitrage profit opportunities has led to a drop in trading volume, prompting hedge funds to unwind their arbitrage positions, resulting in record outflows from Bitcoin ETFs.The report also notes that the strengthening dollar has led to a decline in global liquidity indicators, putting downward pressure on Bitcoin prices. Global liquidity peaked at the end of December 2024, and the current pullback is expected to last until March or April, after which Bitcoin may attempt to rise back to previous highs.

ChainCatcher news, Matrixport released a report stating that the recent market adjustment of Bitcoin is mainly influenced by hedge funds, rather than Wall Street investors.The report pointed out that at least 25% of Bitcoin ETF funds are related to arbitrage trading, and as much as 55% of ETF fund inflows come from hedge funds focused on arbitrage, rather than long-term investors. Since the Federal Reserve's Open Market Committee meeting in December, the significant decline in arbitrage profit opportunities has led to a decrease in trading volume, prompting hedge funds to unwind their arbitrage positions, resulting in record outflows from Bitcoin ETFs.The strengthening of the dollar has led to a decline in global liquidity indicators, putting downward pressure on Bitcoin prices.

Bitcoin ETFs have seen outflows of approximately $2.1 billion for six consecutive days, marking the longest period of fund outflows since June of last year. Matthew Sigel, head of digital asset research at VanEck, believes that the record outflows may stem from hedge funds unwinding a popular strategy known as "basis trading," which profits from the price differences between the spot and futures markets. Some funds use ETFs to profit from the volatility of cryptocurrencies or to hedge short positions in derivatives. He explained, "This strategy involves buying Bitcoin spot (usually through ETFs) while shorting Bitcoin futures to lock in low-risk returns. However, the profits from this trading have recently collapsed, significantly reducing its attractiveness. As a result, hedge funds using ETFs for this trading may have closed their positions, leading to large redemptions."

ChainCatcher news, according to Jinshi Data, hedge fund Elliott warns that the Trump administration's support for cryptocurrencies has fueled speculative frenzy, which could cause "serious damage" when prices plummet. An investor letter shows that the $70 billion asset firm has pointed its finger at the U.S. government's significant enthusiasm for assets that have skyrocketed in price but have "no substance," as well as politicians who support cryptocurrencies.Elliott wrote that the fund has "never seen a market like this," with the AI boom and high stock market valuations being signs that investors are "acting like a bunch of sports gamblers." Cryptocurrencies are the "starting point" of the entire market's speculative frenzy, not only because their scale has expanded but also because they are "close to the White House." The "inevitable collapse" of the cryptocurrency bubble "could cause serious damage in ways we cannot foresee."It is worth mentioning that Elliott founder Paul Singer is a long-time donor to the Republican Party, having donated $56 million to conservative candidates in the 2024 election cycle.

ChainCatcher news, according to Bloomberg, Galaxy's VisionTrack data shows that crypto hedge funds are generally achieving double-digit returns in 2024, with the 130 funds tracked by the VisionTrack Composite Index rising a total of 40%.Among them, Galaxy Digital's Alpha Liquid Fund increased by 76.6%, ProChain Master Fund grew by about 70%, and Tephra Digital Asset Fund LP achieved an annual return rate of 100%.In terms of categories, quantitative strategy funds performed the best, with the VisionTrack Quant Directional Index rising by 53.7%, and the fundamental strategy fund VisionTrack Fundamental Index increasing by 40.4%. Galaxy Research pointed out that most of the funds' gains came from the fourth quarter, driven by favorable factors such as Trump's support for cryptocurrencies and the approval of Bitcoin ETFs, but the overall performance still could not outperform Bitcoin's 120% increase.

ChainCatcher news, according to Cointelegraph, CryptoQuant data shows that as of January 13, the Bitcoin reserves across all cryptocurrency exchanges have fallen to 2.35 million, the lowest level in nearly seven years since June 2018 (when Bitcoin was trading above $7,000).Bitwise Research Director André Dragosch stated that the decline in exchange Bitcoin supply may be attributed to the ongoing discounted buying by institutional participants. Dragosch wrote in a post on X on January 13: "The beta coefficient of global hedge fund performance relative to Bitcoin has increased from a recent cycle low, indicating that market exposure to Bitcoin and other crypto assets is rising."The decline in exchange Bitcoin supply may signal an impending price rally triggered by a "supply shock," which occurs when strong buyer demand meets reduced Bitcoin supply, leading to price increases.

ChainCatcher news, according to Bloomberg, if confirmed by the Senate, Scott Bessent, the U.S. Treasury Secretary chosen by President-elect Donald Trump, will resign from his position at Key Square Group and sell his stake in the partnership to avoid conflicts of interest.Scott Bessent disclosed assets worth at least $521 million in his personal financial disclosure, listing nine top-tier assets, all linked to his hedge fund. These include two batches of U.S. Treasury bonds, two Invesco funds, and open positions in foreign currency exchange rates. He also listed a personal investment of no more than $500,000, which is linked to the price of Bitcoin through an iShares exchange-traded fund. Like the assets he holds through Key Square Capital, Bessent will divest from the cryptocurrency-based ETF. According to his disclosure, Key Square Group will close at the end of March.Some of Scott Bessent's potential conflicts of interest will take longer to resolve. He has invested at least $250,000 in three funds that allow him to withdraw no more than 25% of his holdings each quarter. He will not be able to fully withdraw his holdings until the end of September, which is much longer than the usual 90-day disclosure window. Scott Bessent stated that he will avoid specific decisions that could have a predictable impact on stock values. Scott Bessent also listed residential real estate in the Bahamas valued at at least $5 million, as well as a collection of art and antiques worth at least $1 million.

ChainCatcher news, citing The Wall Street Journal via Cryptoslate, a new survey shows that among 160 crypto hedge funds, about 120 funds reported issues with basic banking services over the past three years. These funds invest in digital currencies and blockchain technology companies.The other 20 alternative investors surveyed (in areas such as real estate and private credit) reported no similar issues. Banking problems include poor communication and direct termination of partnerships. Among the crypto hedge funds facing issues, more than half were explicitly informed by banks that they would terminate their partnerships.However, the reasons for these decisions are often vague or nonexistent. When banks provide explanations, they state a desire to limit their risk exposure to cryptocurrency clients or the industry.

ChainCatcher news, citing sources from The Wall Street Journal, reports that the American hedge fund Starboard Value has acquired a stake in Riot Platforms, with specific shareholding details unclear, and is pushing the company to improve its business model.According to reports, Starboard has been urging Riot to convert some of its Bitcoin mining sites into data centers to host machines for large tech companies, providing high-performance computing (HPC).Riot is currently a "pure" Bitcoin miner, with its revenue solely coming from Bitcoin mining, while some of its peers, such as Core Scientific (CORZ), utilize a significant portion of their facilities for HPC and artificial intelligence computing.

ChainCatcher news, multi-strategy hedge fund Citadel founder and CEO Kenneth Griffin stated in an interview that he regrets not investing in Bitcoin early. He believes that cryptocurrencies like Bitcoin are "an intangible asset whose value comes from intangible factors." Part of it is a sense of community belonging, and part of it is a symbol of "anti-establishment." People derive a certain satisfaction from it.During this election cycle, the American people are saying, "I want to have control in my life," and cryptocurrency is part of that.Additionally, regarding Trump's economic policies, Griffin stated that tariff policies are not a major issue because "the BRICS countries will not detach from the dollar in the next four years." At the same time, Griffin believes that the independence of the Federal Reserve is very important for the dollar's status. "I have always publicly supported the opposition between Powell and Trump, not just in recent months, but for many years."

ChainCatcher news, according to Bloomberg, the world's largest hedge funds have fully capitalized on the trading opportunities triggered by Trump's election last month, making the industry poised for its strongest returns in at least four years. Sources revealed that Balyasny Asset Management's hedge fund gained 3.9% for the month, helping to turn its lackluster performance for the year to October into a 11.6% gain.Sources also stated that Schonfeld Strategic Advisors' Fundamental Equity pool and Citadel's Tactical Trading fund also saw gains last month, raising their returns for 2024 to 18.6% and 20% respectively, making them the best-performing multi-strategy hedge funds so far this year.Additionally, a benchmark index tracking 70 multi-strategy hedge funds by PivotalPath is on track to achieve its best performance since 2020.

ChainCatcher News, Hong Kong plans to exempt private equity funds, hedge funds, and ultra-high-net-worth investment vehicles from taxes on cryptocurrency, private credit investments, and other asset returns.This week, the Hong Kong government stated in a 20-page proposal that taxation is "one of the main considerations" for asset management companies when deciding on the location of their business, and the Hong Kong government aims to create a "favorable environment" for them.According to the proposal, the Hong Kong government hopes to expand the scope of tax-exempt investments to include private credit, overseas real estate, and carbon emission allowances. The government is conducting a six-week consultation on the plan.

ChainCatcher news, according to Forbes, securities filing documents show that hedge funds Millennium Management, Capula Management, and Tudor Investment increased their investments in U.S. spot Bitcoin ETFs in the third quarter.Millennium's holdings in iShares Bitcoin Trust more than doubled from the previous quarter to 23.5 million shares, valued at $849 million. It also increased its positions in ARK 21Shares and Bitwise Bitcoin ETFs; London-based macro hedge fund Capula added to its positions in iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, totaling approximately $600 million; Paul Tudor Jones's hedge fund Tudor significantly increased its investment in iShares Bitcoin Trust, raising its share count fivefold to 4.4 million shares.

ChainCatcher news, the liquidators of Three Arrows Capital (3AC) are attempting to amend their claim against FTX, increasing the claim amount from $120 million to $1.53 billion.The liquidators of 3AC claim that FTX liquidated and seized their assets on the platform two weeks before the hedge fund's collapse to settle a $1.33 billion debt. The hedge fund argues that these transactions were "avoidable and unfair," causing harm to 3AC's creditors. 3AC believes the liquidation should be invalidated, accusing FTX of undervaluing the transactions and breaching trust and contract.The bankrupt hedge fund also claims that FTX delayed providing necessary information, forcing 3AC to parse original data to calculate losses. As a result, 3AC states that it could only confirm the liquidation amount in August. However, FTX responded that an unnamed individual associated with 3AC initiated the asset liquidation. FTX has not identified this person. A court hearing will be held on November 20 to discuss 3AC's motion to amend the claim.

ChainCatcher news, hedge fund manager Nelson Peltz, who supports Trump in this U.S. election, said that the stock market rally driven by the election cannot continue uninterrupted, and he revealed that he was the matchmaker between Trump and Musk. "I'm a matchmaker," Peltz recalled paving the way for Musk. One weekend in 2023, when Musk visited Peltz's home, Peltz also invited Trump to have breakfast together. Peltz said, "Without Musk's help, I don't know if Trump would have achieved such a comprehensive victory." Musk's political action committee spent about $200 million to support Trump.

ChainCatcher news, according to Bloomberg, Brazil's well-known hedge fund Verde Asset Management stated in a report to clients on Monday that the company established a small Bitcoin position before the U.S. presidential election voting on November 5, although the specific size of the position has not been disclosed.The fund is managed by industry veteran Luis Stuhlberger. Data shows that the company's main fund fell by 0.18% in October after fees. In contrast, the CDI interbank benchmark rate rose by 0.93% during the same period, and a basket of local hedge funds increased by 0.29%. So far this year, its performance has outperformed the Anbima hedge fund index by more than two percentage points.Verde currently manages assets of approximately 19 billion reais (3.3 billion USD), down from 20 billion reais a month ago.