Arthur Hayes’ family office, Maelstrom, is navigating the uncertainty of the U.S. election with a hedged position, holding 5% of its portfolio in staked USDe, a stablecoin yielding around 13%, while maintaining significant bullish bets on Bitcoin (BTC) and Ethereum (ETH).
Hayes notes that post-election, Maelstrom plans to pivot this stake into crypto if the election outcome is peacefully accepted.
The election, marked by high market tension, has Maelstrom’s portfolio safeguarded by this delta-neutral position in USDe, a synthetic dollar from Ethena Labs designed to retain its $1 peg through hedged strategies.
Hayes expects market volatility, particularly in risk assets if social unrest ensues from an inconclusive or contested result. Yet, he believes the long-term prospects for crypto remain favourable regardless of who takes office, anticipating continued fiscal expansion that could fuel inflation—beneficial for assets like Bitcoin and gold.
Looking beyond the election, Hayes identifies geopolitical conflicts as potential risks to crypto. For now, Maelstrom is balancing its crypto positions cautiously, favouring minimal leverage to navigate this period of uncertainty.
