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Crypto market is shedding blood in recent developments following multiple reasons. According to some latest indications it is observed that digital asset fund managers are now acquiring crypto exchange native tokens. As per the fund managers, the tokens will help support their market positions. Bloomberg, one of the mainstream news-outlet has reported that traders are more likely to acquire volatile assets like Bitcoin surging such a massive crash of prices. The scenario shows that the investors in the highly volatile market have cracked a strategy to make significant gains.
Investors knows how to tackle volatility of crypto
Investors in the cryptosphere are investing with the most famous strategy of buying the dip. Most of the traders and investors in the ecosystem are acquiring more coins during a massive crash. The scenario witnesses that the investors and traders in the cryptosphere now adopt a strategy common to traditional financial investors to deal with the intrinsic, volatile nature of the virtual assets.
Why are fund managers opting for crypto native tokens?
According to Jeff Dorman, the CIO of Arca, crypto fund manager exchange native cryptocurrencies are defensive assets. Additionally, he explained that while many individuals tend to think of BTC as a defensive asset, it is exchange tokens that have real cash flows, revenues, and amortization that possess such quality.
Here we should note that the claims related to exchanging native crypto tokens have appeared true this far. According to the reports from Arca, its massive returns on the sale of its Leo holdings. In 2019, the funds manager acquired $3 million utility tokens of Bitfinexm Unus Sed Leo for $1 per coin. Arca later sold all the tokens while making a huge profit of about $5.5 on each token.
Following the gains, the firm believes that the investment in exchange native tokens was one of their best risk and reward investments.
Are exchange tokens worthy?
Being in the cryptosphere many experts and analysts have noted that exchange native cryptocurrencies have shown resilience in a bearish market. Such metrics come as exchanges are the ones who actually benefit from volatility.
With the increasing volatility in the cryptocurrency market, especially amidst global tensions and government policies, digital assets’ investors are comprehending the hard way not to bet on BTC alone. As a result, exchange tokens have become a sort of haven as a defensive asset.
