Formation of funds specializing in bankrupt crypto assets ──Will chaos be an opportunity | CoinDesk JAPAN | Coin Desk Japan

New York-based hedge fund Fir Tree Partners is launching a new fund focused on distressed crypto assets. It’s a bet on the turmoil the industry has experienced over the past year or so.

The Fir Tree Digital Asset Opportunities Fund will go on sale on August 1, according to an email confirmed by CoinDesk.

“What Fir Tree does best is spotting opportunities that are mispriced, chaotic, or complex. Rarely do we meet all three. But right now. , are aligned with digital assets,” writes Fir Tree.

We’ve reached out to Fir Tree for comment, but have yet to hear back.

Cryptoassets and the cryptoassets industry were in turmoil last year. Lending of Three Arrows Capital, Voyager Digital, BlockFi, Celsius, FTX and Genesis (owned by Digital Currency Group like CoinDesk) Business collapses and bankruptcies occurred one after another.

Fir Tree is no stranger to crypto, having tried to short the stablecoin Tether (USDT) and fought Grayscale (also owned by DCG) in court.

In an email, the firm said it “has no view on the direction of cryptocurrencies or the behavior of any particular cryptocurrency” and will seek to “hedge its exposure to cryptocurrencies.”

Fir Tree also said traditional crypto investors don’t have the necessary experience to navigate “bankruptcy proceedings and[effective]activist efforts,” which works in the firm’s favor. Yet another advantage over distressed investors is that distressed investors are struggling to “keep up with the dynamics of this very complex asset class” and “want to get involved with ‘crypto’ stuff.” said that.

｜Translation: CoinDesk JAPAN
｜Editing: Takayuki Masuda
| Image: Art Institute of Chicago/Unsplash
｜Original: Crypto Distress Prompts Fir Tree, a Hedge Fund, to Seek Profit From Turmoil