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25%-40% of Crypto hedge funds have exposure to FTX or FTT

65 points by thm 4y ago

LatteLazy 4y ago
The worlds second largest exchange? In a very fragmented market? I'd be surprised if the number wasn't closer to 90%. But then there is exposure (a few 100k USD) and Exposure (>30% of assets)...
mrep 4y ago
https://web.archive.org/web/20221122110632/https://www.ft.com/content/125630d9-a967-439f-bc23-efec0b4cdeca https://web.archive.org/web/20221122110632/https://www.ft.co...
unsupp0rted 4y ago
What % have exposure to someone that has exposure to FTX?
balderdash 4y ago
If I’m reading this correctly there is ~$9b of customer exposure (globally across individuals and institutions) and only 10 have exposure >$100m. It’s those 10 I’m curious about, while the losses for the others are potentially individually ruinous, it’s hard to see how they’d create systemic issues
sph 4y ago
Title should read: "Hedge funds left with billions stranded on FTX"
- mattbrewsbytes 4y ago
  If they're unable to claim anything on FTX as an asset on their balance sheet and if they are upside down on some other position(s) really bad (which is highly likely this year) and new capital is hard to get they might have to close positions to get their balance sheet under control. Depends how much margin these hedge funds have been using in comparison to "assets" that are crypto that was basically fraud/stolen from them.
Tyndale 4y ago
somedangedname 4y ago
My favourite unsubstantiated theory about FTX is that its fraud was a solution for Tether's liquidity and banking woes. Twitter user Bitfinexed has speculated that Alameda Research's losing trades have counterparties that are associated with Tether and that the trades acted as a means of funnelling money into the struggling stablecoin. He further alleges that Tether have been heavily minting coins to wash trade and inflate crypto asset prices. The liquidity from FTX would have been used to cover withdrawals by Tether customers since the start of the bear market. I'm not qualified to assess the veracity of these claims but Bitfinexed has called a number of scams and collapses in cryptology before they have come to pass.
- sshine 4y ago
  Wouldn't Occam's razor suggest that a less coordinated alignment of interests is more probable? I.e., people who own a lot of heavily minted scam-coins want to diversify as their exit strategy, and the most liquid alternatives are other scam assets (coins, companies, NFTs). > Bitfinexed has called a number of scams and collapses in cryptology Ahem. Let's keep cryptology as meaning the academic study of cryptography and cryptanalysis. ;-)

65 points by thm 4y ago

The worlds second largest exchange? In a very fragmented market? I'd be surprised if the number wasn't closer to 90%. But then there is exposure (a few 100k USD) and Exposure (>30% of assets)...

mrep 4y ago

https://web.archive.org/web/20221122110632/https://www.ft.com/content/125630d9-a967-439f-bc23-efec0b4cdeca https://web.archive.org/web/20221122110632/https://www.ft.co...

unsupp0rted 4y ago

What % have exposure to someone that has exposure to FTX?

balderdash 4y ago

If I’m reading this correctly there is ~$9b of customer exposure (globally across individuals and institutions) and only 10 have exposure >$100m. It’s those 10 I’m curious about, while the losses for the others are potentially individually ruinous, it’s hard to see how they’d create systemic issues

sph 4y ago

Title should read: "Hedge funds left with billions stranded on FTX"

mattbrewsbytes 4y ago
If they're unable to claim anything on FTX as an asset on their balance sheet and if they are upside down on some other position(s) really bad (which is highly likely this year) and new capital is hard to get they might have to close positions to get their balance sheet under control. Depends how much margin these hedge funds have been using in comparison to "assets" that are crypto that was basically fraud/stolen from them.

Tyndale 4y ago

somedangedname 4y ago

My favourite unsubstantiated theory about FTX is that its fraud was a solution for Tether's liquidity and banking woes. Twitter user Bitfinexed has speculated that Alameda Research's losing trades have counterparties that are associated with Tether and that the trades acted as a means of funnelling money into the struggling stablecoin. He further alleges that Tether have been heavily minting coins to wash trade and inflate crypto asset prices. The liquidity from FTX would have been used to cover withdrawals by Tether customers since the start of the bear market. I'm not qualified to assess the veracity of these claims but Bitfinexed has called a number of scams and collapses in cryptology before they have come to pass.

sshine 4y ago
Wouldn't Occam's razor suggest that a less coordinated alignment of interests is more probable? I.e., people who own a lot of heavily minted scam-coins want to diversify as their exit strategy, and the most liquid alternatives are other scam assets (coins, companies, NFTs). > Bitfinexed has called a number of scams and collapses in cryptology Ahem. Let's keep cryptology as meaning the academic study of cryptography and cryptanalysis. ;-)