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Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

bloomberg.com

21–27 of 27 posts

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#21
post #8
post #3

Cant determine whether this is a PR piece or actually sound “investment advice”

Just because it's PR doesn't make it wrong. Yes, he profits if you do what he says. But... so do you!

I am always cautious when people share "their secrets" with the rest of the market.

I am not saying it's wrong but I have been in cryptocurrencies long enough to know it's not as simple as it might look.

I would be skeptical of the ability to short this market substantially since those who came in very early and at very low prices hold quite a lot and can afford it to go way down yet and thus will be long on this if need to.

That's also just another theory we have no way of knowing whether is true or not.

So only time will tell.

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#22
post #3

Cant determine whether this is a PR piece or actually sound “investment advice”

PR but it's no more PR than any other pro-bitcoin article that's been on the front page.

Well, so far the pro's have been fairly correct.

That doesn't mean there won't be a major correction but again it just sounded disingenuous to me.

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#23

Earlier quoted context omitted.

He's not "on the short side". If you read the article, he's talking about an arbitrage opportunity, which if executed properly, should not be net long nor net short.

Citron is on the short side. Their entire investment strategy of the company is to short assets, in this scenario the future is used as an arbitrage hedge, but overall yes citron is short biased on bitcoin.

It’s bitcoin-neutral, that’s the whole point of the hedge.

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#24
post #23

Earlier quoted context omitted.

Citron is on the short side. Their entire investment strategy of the company is to short assets, in this scenario the future is used as an arbitrage hedge, but overall yes citron is short biased on bitcoin.

It’s bitcoin-neutral, that’s the whole point of the hedge.

Citron is not bitcoin neutral. They are short biased bitcoin as their website and twitter account reiterate. And a hedge doesn't mean "neutral." It simply protects you in the event that an investment doesn't go as expected.

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#25
post #20
post #18

Earlier quoted context omitted.

Using futures is not 100% stupid when it makes issue (4) a non-issue.

Futures comes at a cost, however: premium and rollover costs. Premium costs is not fix if you need to rollover. You’ll need to pay both premium and interest on gbtc. Also futures on CME are not easily tradable. The contract value is $100k and liquidity is not impressive so far.

CFE futures are for 1 bitcoin and seemed reasonably liquid for small trades.

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#26
post #24
post #23

Earlier quoted context omitted.

It’s bitcoin-neutral, that’s the whole point of the hedge.

Citron is not bitcoin neutral. They are short biased bitcoin as their website and twitter account reiterate. And a hedge doesn't mean "neutral." It simply protects you in the event that an investment doesn't go as expected.

The bloomberg piece says: “Left recommends shorting the trust, buying bitcoin futures”. He says in the video: “I don’t even care what happens to bitcoin”. Where is the short bias?

Re: Short Seller Says Naive Bitcoin Traders Open a Pathway to Profit

#27
> The futures are already showing signs of efficiency. When they debuted a week ago, Cboe’s traded for a price as much as 13 percent higher than the price of bitcoin -- a wide gap indicating an immature market

Can someone explain this to me? If the market expects the price to go up a lot, why wouldn't the futures trade at a large premium?

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