Strategy Emerges as Key Hedge Tool for Institutions Amid Crypto Market Volatility

Institutions turned to hedge instruments like Strategy as traditional crypto hedging tools struggled amid the recent market turmoil. After the Oct. 10 crash, which damaged liquidity across various crypto-linked assets, institutions sought deeper stock-based solutions to manage their bitcoin and Ethereum exposure. This shift led to increased short positions in MicroStrategy (MSTR) shares, driven by pressure on direct crypto hedging tools and a search for more stable avenues to manage risk.