---
title: Systematic Hedging of the Cryptocurrency Portfolio
url: https://www.ml-quant.com/papers/ssrn/4762733/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4762733
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4762733
featured: 2024-03-20
citations: 0
topic: Crypto & DeFi
---


# Systematic Hedging of the Cryptocurrency Portfolio

QuantPedia's article suggests a strategy to hedge cryptocurrency portfolios in cold storage using a Top 5 cryptocurrency index and BTC derivatives to reduce market risk.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4762733
- Identifier: SSRN 4762733
- Released: 2024-03-17
- First featured: Quant Letter No. 41 (2024-03-20): https://www.ml-quant.com/issues/2024-03-20/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Crypto & DeFi

## Related

- [Factors Influencing Cryptocurrency Prices: Evidence from Bitcoin, Ethereum, Dash, Litcoin, and Monero](https://www.ml-quant.com/papers/arxiv/2511.22782/): The study examines the price factors influencing five major cryptocurrencies from 2010-2018, highlighting the roles of market conditions, long-term appeal, and the SP500 index.
- [Is bitcoin an inflation hedge?](https://www.ml-quant.com/papers/ssrn/4763347/): Research suggests that Bitcoin's returns significantly increase after a positive inflation shock, indicating its potential as an inflation hedge.
- [Hydrodynamics of Markets](https://www.ml-quant.com/papers/arxiv/2403.09761/): The study uses Kelvin waves and advanced math to link physics and financial engineering, aiming to solve complex problems like hedging losses in cryptocurrency trading.
- [Cointegrated Portfolios and Volatility modeling in the Cryptocurrency Market](https://www.ml-quant.com/papers/ssrn/4756389/): The study finds a correlation between cryptocurrency market volatility and trading spread, suggesting portfolios based on the Johansen procedure yield the highest returns.
- [Crypto inverse-power options and fractional stochastic volatility](https://www.ml-quant.com/papers/arxiv/2403.16006/): A new model using fractional stochastic volatility helps manage cryptocurrency exchange rate risk, highlighting the need for price and volatility jumps in the crypto market.
- [Tax Policy Handbook for Crypto Assets](https://www.ml-quant.com/papers/arxiv/2403.15074/): The growth of blockchain technology and crypto assets presents regulatory and tax challenges, prompting discussions on crypto principles, tax issues, and policy responses.