Give an Example of an Entity in the Crypto Space That Would Use a Long Hedge ▴ Learn

Give an Example of an Entity in the Crypto Space That Would Use a Long Hedge.

A cryptocurrency exchange or a venture capital firm that has committed to purchase a large amount of Bitcoin at a future date would use a long hedge. They would buy Bitcoin futures contracts today to lock in a purchase price, protecting themselves from the risk that the spot price of Bitcoin will rise before they execute their planned purchase.

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