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Arthur Hayes' Maelstrom Hedges U.S. Election Uncertainty With Staked USDe; Holds Large BTC, ETH Bullish Bets

  • Maelstrom has parked 5% of its funds in staked USDe, Hayes told CoinDesk in an email interview.
  • The fund will rotate that money into crypto after the election results are clear and the losing side accepts the defeat, Hayes added.
  • It doesn't matter who wins beyond the short-term, Hayes quipped.
UnmuteWhy Polymarket Fails to Raise Polygon POL Price02:32Microsoft Urges Shareholders to Vote Against Bitcoin Proposal12:56Bitcoin Option Volumes Soar, Institutions Eye $100K BTC Post-U.S. Election: Kaiko11:20Regulatory Game-Changer: OKX's Crypto Expansion in Dubai02:12Solana Outperforming Amid Memecoin FrenzyWith the U.S. election just a week away, markets are waiting with bated breath for the political event that has created "high uncertainty."

Arthur Hayes, chief investment officer at digital asset investment fund Maelstrom and co-founder of BitMEX, is hedging the election risk with Ethena Lab's USDe stablecoin while maintaining large bullish bets in bitcoin (BTC), ether (ETH) and other cryptocurrencies.

"Given the uncertainty, Maelstrom has 5% of the fund in staked USDe (Ethena USD), earning roughly 13%. We maintain our large long positions in Bitcoin, Ether, and other tokens," Hayes told CoinDesk in an email.Ethena's USDe is a synthetic dollar, which uses collateralized stablecoin and a hedged cash-and-carry arbitrage strategy to retail the $1 price peg. The funding fee collected from shorting perpetual futures tied to BTC and ETH as a part of the carry trade represents the yield. Staking USDe and acquiring staked USDe, or sUSDe, a reward-bearing token, automatically grants the user access to protocol rewards.

The fund's allocation in the delta-neutral product will guard against potential market price swings in the lead-up to the election on Nov. 5 and results, due three days later on Nov. 8.Maelstrom is an investment fund focused on digital assets and managed by the family office of Arthur Hayes (co-founder, BitMEX). The fund’s mandate is to build a portfolio of infrastructure companies that will serve as the foundation of the next wave of trustless decentralization. In addition to managing the fund, Hayes writes the industry-leading monthly newsletter Crypto Trader Digest.

Watch out for a sore loserHayes expects risk assets, including cryptocurrencies, to see increased price turbulence for a while if the losing side takes to the street, causing social unrest.According to traditional media, Republican Donald Trump and Democrat Kamala Harris are locked in a dead heat. Meanwhile, betting on decentralized prediction platforms has the supposedly pro-crypto Trump leading his rival Harris by a significant margin.

"If the election comes and goes with no social unrest, the markets will rip and roar. Post the election, once we know who wins, and the other side accepts the results, then we will deploy all sUSDe into crypto," Hayes said.As of Friday, bitcoin options listed on Deribit signaled volatility of nearly 3.8% for Nov. 8. BTC has historically seen more giant swings on random non-event days.It doesn't matter who winsThe outcome of the U.S. election is unlikely to significantly alter Bitcoin's broader bullish prospects, as budget deficits are likely to continue rising irrespective of who takes the presidency. Bitcoin and gold are perceived as safe haven assets, offering a hedge against budget deficits, which tend to be inflationary.

"Both Trump and Harris will print money in the trillions of dollars. In the medium term, it doesn't matter who wins. Crypto will do well. In the short term, the market understands the ways in which Trump will stimulate the economy because that is the traditional way it has been done in the past. Tax cuts combined with business-friendly deregulation but with no cuts in benefits is what he will do," Hayes explained.Legendary trader Paul Tudor Jones voiced a similar opinion last week, saying inflation will continue to rise regardless of whether Donald Trump or Kamala Harris wins the presidency. Several crypto traders are betting on a bitcoin rally to $80,000 and higher after the election.

Potential war is a short-term riskLooking past the election, a potential escalation of war in the Middle East or Ukraine could lead to short-term pain for risk asset holders."The biggest macro risk is if friends and foes of the U.S. engage in aggressive military action while there is confusion as to who is in charge after the election. War is un-investable in the short-term and this would lead to a global risk off," Hayes quipped, saying that the war's inflationary impact would eventually bode well for crypto.

"The way to play this risk is to size positions accordingly and use little to no leverage," Hayes said.Edited by Parikshit Mishra.

Source

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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