Arthur Hayes' Maelstrom Hedges U.S. Election Uncertainty With Staked USDe, Holds Large BTC, ETH Bullish Bets

As the U.S. presidential election approaches, Arthur Hayes, the chief investment officer of the digital asset fund Maelstrom, is strategically positioning his investments to navigate the uncertainty. With a focus on maintaining bullish bets in Bitcoin (BTC) and Ether (ETH), Hayes has allocated 5% of the fund's assets into staked USDe, a stablecoin from Ethena Lab, to hedge against potential market volatility.

Key Takeaways

• Maelstrom has parked 5% of its funds in staked USDe, earning approximately 13%.

• The fund plans to reinvest in cryptocurrencies after the election results are confirmed.

• Hayes believes the election outcome will not significantly impact Bitcoin's long-term prospects.

Strategic Positioning Amid Election Uncertainty

With the U.S. election just a week away, markets are bracing for potential volatility. Hayes has opted for a cautious approach by utilizing Ethena's USDe stablecoin, which is designed to maintain a $1 peg through a collateralized strategy. This allocation aims to protect against price swings leading up to the election on November 5 and the results expected on November 8.

"Given the uncertainty, Maelstrom has 5% of the fund in staked USDe, earning roughly 13%. We maintain our large long positions in Bitcoin, Ether, and other tokens," Hayes stated.

Market Reactions and Predictions

Hayes anticipates that risk assets, including cryptocurrencies, may experience increased turbulence if the losing side of the election protests. Current polling indicates a tight race between Republican Donald Trump and Democrat Kamala Harris, with decentralized prediction markets showing Trump as the frontrunner.

• Potential Market Scenarios:No Social Unrest: If the election proceeds without protests, markets are expected to rally.Social Unrest: Increased volatility and potential declines in asset prices if protests occur.

Long-Term Outlook for Bitcoin

Despite the immediate uncertainties surrounding the election, Hayes believes that the broader bullish outlook for Bitcoin remains intact. He argues that regardless of who wins, budget deficits are likely to continue rising, which historically benefits Bitcoin as a safe-haven asset.

"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," Hayes explained.

Risks Beyond the Election

Looking beyond the election, Hayes warns of potential geopolitical risks, particularly regarding military actions in the Middle East or Ukraine. Such developments could lead to short-term pain for risk asset holders.

• Key Risks:Military Escalation: Increased tensions could lead to market instability.Inflationary Pressures: Any military conflict may have inflationary effects, ultimately benefiting cryptocurrencies.

Conclusion

As the election date approaches, Arthur Hayes' Maelstrom is taking a calculated approach to hedge against uncertainty while maintaining a bullish stance on key cryptocurrencies. The outcome of the election may shape market dynamics, but Hayes remains optimistic about the long-term prospects for Bitcoin and other digital assets.

Sources

• Arthur Hayes' Maelstrom Parks 5% of its Funds With Ethena USD Amid Election Uncertainty, Holds Large BTC, ETH Bullish Bets, CoinDesk.

• Arthur Hayes, director de inversiones de Maelstrom, mantiene grandes apuestas alcistas en bitcoin (BTC), ether (ETH) y otras criptomonedas, CoinDesk.

• Maelstrom Arthur Hayes зберігає 5% своїх коштів за допомогою Ethena USD на тлі невизначеності виборів, зберігає великі BTC, ставки на зростання ETH, CoinDesk.

• Maelstrom d'Arthur Hayes place 5 % de ses fonds chez Ethena USD en raison de l'incertitude électorale et détient d'importants paris haussiers sur le BTC et ETH, CoinDesk.

• Maelstrom de Arthur Hayes estaciona 5% de seus fundos com Ethena USD em meio à incerteza eleitoral, mantém grandes apostas otimistas em BTC e ETH, CoinDesk.