Royal Group, an investment firm led by a prominent member of the Abu Dhabi royal family, has shorted billions of dollars in US stocks, Bloomberg reported.
People familiar with the matter told Bloomberg that he did not want to be named, and that Royal Group has moved its portfolio to short-term US Treasury bonds.
The company opened a short position in case of a recession in the USA.
Bloomberg wrote that Royal Group, which shifted its portfolio to short-term US Treasury bonds in case of a recession, invested more in commodities and cryptocurrencies other than bonds.
People familiar with the matter did not disclose which stocks or sectors Royal Group is shorting.
The report also stated that Royal Group, which manages one of the world's largest family fortunes, will increase its exposure to the US when the situation in the US improves and the FED signals to cut interest rates.
Royal Group is an investment firm led by Sheikh Tahnoon bin Zayed Al Nahyan, a royal member of Abu Dhabi.
How is Bitcoin Price Affected?
Bitcoin price is generally correlated with US stock markets. However, recently, the BTC price reacted positively to the crisis in the banking sector in the USA and rose after the news of the collapse of the banks.
When everything is evaluated as a whole, it is not clear at the moment whether a wider recession in the US stock market will have an effect on the Bitcoin price, as such a situation has not been encountered before.
Bitcoin, which has a market value of $ 545 billion, continues to be traded at $ 28,194 at the time of writing.
*Not investment advice.