A Unique Way To Profit Off Bitcoin? Hedonova Reports Investing In Crypto-Structured Notes

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A $1,000 investment in Bitcoin BTC/USD just five years ago would be worth almost $40,000 today. Even hot stocks like Tesla Inc. TSLA and NVIDIA Corp. NVDA can’t compete.

Many investors have reported making life-changing money in the crypto market. This promise brings more investors into the market each day hoping to do the same. But the truth is that many other investors have lost life-changing amounts of money. 

The crypto market is wildly volatile. In fact, BTC’s volatility index is about twice that of traditional equities. In this sort of environment, significant downside can exist if an investor mistimes the market. 

Structured notes are derivative financial instruments that have been used for years in traditional markets to help protect against downsides. These notes are hybrid securities, meaning they combine debt and other investments into one product. This is meant to provide the safety and stability of an instrument like bonds as well as the upside potential of equities. This can allow investors to gain exposure to equities while eliminating some of the risk associated with them.

Now structured notes are being used in crypto, and this may represent an innovative step in the continued maturation of the market. The purpose of investing in structured notes is to ensure that investors don't lose money when BTC falls, but they profit when BTC rises, which is only possible with structured notes. The investment firm Hedonova has invested in crypto-structured notes designed by Morgan Stanley MS. The fund expects these to give it some exposure to the explosive growth potential of Bitcoin while protecting against a portion of the volatility inherent in the market. 

Another move has come with the firm’s investment in OpenSea, the largest NFT platform around. Hedonova invested nearly $130 million at a 40% discount from the market valuation of $10 billion. The investment might be a boon for the firm’s bottom line as OpenSea continues to dominate and grow at a rapid pace. The platform saw a 1,400% increase in transaction volume since January 2021 and reached an all-time high of $10 billion in revenue last August.

If you’d like to know more about the firm, check out https://www.hedonova.io/.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Posted In: HedonovaPartner ContentCryptocurrencyMarkets

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