In-Depth Look at Trend Research's Crypto Market Strategy
According to recent monitoring data, Trend Research has once again borrowed 30 million USDT from the decentralized lending platform Aave and transferred the funds to the well-known exchange Binance. This move indicates that the institution is still actively adjusting its cryptocurrency asset allocation.
Bullish ETH Accumulation Strategy
Since last November, Trend Research has been using lending tools to enhance capital efficiency, continuously accumulating Ethereum (ETH). As of now, the institution has accumulated a total of 626,000 ETH, which is worth approximately $1.94 billion at current market prices.
- Average purchase cost around $3,186/ETH
- Current unrealized loss of about $50 million
- Overall leverage ratio maintained at around 2x
Significance of Lending and Leverage
Notably, Trend Research's outstanding loan amount on Aave has reached up to $1 billion, showing its relatively optimistic view on the market's future direction. Although there's some unrealized loss in the short term, this strategy of expanding positions through lending reflects the long-term perspective that institutional investors have towards the digital asset space.
These moves also reignite discussions about the role of leverage in crypto investments. In the current market environment, leveraged positions can amplify returns but also come with increased risks.