New York-based hedge fund firm Fir Tree Partners is looking to capitalise on the turmoil seen in the digital assets market over the past year or so by launching a hedge fund that will make investments in distressed crypto assets, according to a report by CoinDesk.
The report cites an email seen by CoinDesk as confirming that The Fir Tree Digital Asset Opportunities Fund will launch on 1 August.
Fir Tree, which has previously dabbled in crypto through an attempt to short Tether’s USDT stable coin, believes it can leverage its experience in credit, capital structure arbitrage, distressed, special situation and SPAC investment strategies to gain an advantage over other investors.
In the email, the company wrote: “Fir Tree is at its best when we identify opportunities that are mispriced, dislocated or complex. Rarely do we encounter situations that are all three, but that is precisely what we are seeing in digital assets right now.”
Fir Tree also said that it will also benefit from the fact that conventional crypto investors don’t have the experience needed to navigate “bankruptcy proceedings or [conduct] effective activist efforts”.
