London-based financial services platform Marex has launched a volatility-adjusted strategy that includes bitcoin, ether, and the dollar index futures to cater to investors who are concerned about the high price turbulence in the crypto market.
The strategy is already being marketed to clients and consists of a basket that is consistently rebalanced between BTC, ETH, and DXY futures to target annualized volatility of 8%.
The DXY futures act as a hedge, taking advantage of its safe-haven appeal, while bitcoin and ether behave like risk assets. The long-only basket tied to BTC, ETH, and DXY would have generated significantly higher returns since early 2021 than traditional buy-and-hold strategies.
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