A catastrophic collapse of FTX would move the bitcoin price down, so maybe shorting bitcoin would have been a good idea to safeguard some $ assets against the collapse of FTX. I’m not sure this is a good idea, and I don’t think this option was available to EA charities as all of the above issues with hedging apply even more so in this case.
Interestingly, just before this post got published BTC price moved back almost exactly to pre-FTX collapse levels.
I think it strengthens the overall thesis that hedging would have been impractical.
Interestingly, just before this post got published BTC price moved back almost exactly to pre-FTX collapse levels.
I think it strengthens the overall thesis that hedging would have been impractical.