BlackRock expected to offer crypto trading as Three Arrows exec says long Bitcoin, ETH in 2022


Concerns over stock market strength are far from universal as crypto correlation to U.S. equities fails to phase 3ac’s Zhu Su.

Bitcoin (BTC) and Ether (ETH) are sure long bets for 2022, prominent investor and commenter Zhu Su says.

In a tweet on Feb. 10, Zhu, co-founder of hedge fund Three Arrows Capital (3AC), argued that BTC and ETH were the best options for investment this year, along with oil, while the S&P 500 is a no-go.

Zhu: 2022 macro trades “pretty clear”

Despite concerns that deflationary pressures could take Bitcoin and altcoins down with equities, not everyone believes that 2022 will be a red year for hodlers.

The picture is complex — some are eyeing a “melt-up” for stocks and crypto as a result, thanks to positive correlation. Others feel a painful period is due across the board, but that at least Bitcoin will emerge stronger thereafter.

Ex-BitMEX CEO Arthur Hayes, meanwhile, has been solidly gloomy on the macro outlook since the start of the year.

For Zhu, however, there are now “pretty clear” places to hedge cash for the coming three quarters.

Think the year’s macro trades are pretty clear for me now:

1) long oil dec22, dec23 fwd
2) long btc, eth, and other high-liquidity crypto as hard money
3) short russell/spx
4) short Meta + Apple / long Google + Microsoft

— Zhu Su (@zhusu) February 10, 2022

An additional Twitter post agreed that adding Visa and MasterCard as fiat payment processors was also a “no brainer” for shorts.

“An insane 24 hours”

The forecast followed rumors that BlackRock, the world’s largest asset manager, is allegedly aiming to enter the cryptocurrency space.

Related: Price analysis 2/9: BTC, ETH, BNB, XRP, ADA, SOL, LUNA, AVAX, DOT, DOGE

According to several people with knowledge of the matter quoted by mainstream media, BlackRock clients could soon be able to trade crypto, while the giant will also facilitate credit in return for crypto collateral.

One source described BlackRock’s approach as “looking to get hands-on with outright crypto.”

The Canadian branch of Big Four accounting conglomerate KPMG announced it had added both Bitcoin and Ethereum to its balance sheet this week.

All in all, in the words of popular trader and analyst Pentoshi, adoption has fuelled an “insane 24 hours.”

$BTC

Insane 24 hours

Some random Canadian company bought way less $BTC than I own

Russia adopted crypto
Blackrock wants Bitcoin
El Salvador Bonds approved

So why price struggle here?

Reclaims = safety off invalidations
Does taking what the market gives pay again? https://t.co/OyTmlSdRlg pic.twitter.com/F3ibYnjjmX

— Pentoshi Forbes worst trader 40 years running (@Pentosh1) February 10, 2022

As Cointelegraph reported, however, near-term BTC price gains remain far from a dead certainty for the bulls.


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