Arthur Hayes' Strategic Crypto Fund Management: Leveraging Exchange Deposits and Buyback Momentum

Arthur Hayes, co-founder of BitMEX and current CIO of Maelstrom, has positioned himself as a visionary in crypto fund management by exploiting the intersection of perpetual futures, liquidity concentration, and macroeconomic tailwinds. His strategies, rooted in leveraging exchange deposits and buyback momentum, are reshaping how institutional and retail capital flows into crypto markets. This analysis unpacks Hayes' approach, its implications for market structure, and the broader financial ecosystem.

Perpetual Swaps: The Foundation of Liquidity Concentration

Hayes' career at BitMEX was defined by the introduction of perpetual swaps-derivative contracts with no expiration dates, anchored to spot prices via funding rates. These instruments have since become the backbone of crypto trading, enabling 24/7 liquidity and high leverage without the complexities of traditional futures. By 2025, Hayes argues that perpetuals have outcompeted traditional exchanges, with platforms like Hyperliquid generating over $100 million in daily volume for Nasdaq 100 equity perpetuals. This shift is not merely technological but structural: perpetuals concentrate liquidity into a single contract, reducing fragmentation and enabling traders to maintain exposure without rolling positions.

For fund managers, this means perpetual swaps act as a leveraged vehicle to amplify returns while minimizing slippage. Hayes' advocacy for perpetuals extends beyond crypto assets; he predicts equity perpetuals will dominate price discovery for major benchmarks like the S&P 500 by the late 2020s, forcing traditional exchanges to adapt or risk obsolescence.

Exchange Deposits: A Tool for Market Influence

Hayes' Maelstrom fund has taken a novel approach to capital deployment by targeting medium-sized crypto infrastructure firms, such as trading platforms and data analytics providers. By raising a $250 million equity fund, Maelstrom aims to acquire these firms through special-purpose vehicles, positioning itself as an anchor investor in off-chain businesses with sustainable cash flows. This strategy diverges from token-focused investments, prioritizing real-world utility and growth potential.

The key to Hayes' success lies in leveraging exchange deposits-capital held on crypto platforms-to amplify market influence. For instance, by controlling liquidity-rich infrastructure, Maelstrom can indirectly shape trading dynamics. Hayes' emphasis on perpetual swaps and high-leverage exposure allows the fund to capitalize on volatility while maintaining a low cost of capital. This approach mirrors traditional hedge fund strategies but is executed in a 24/7, decentralized environment.

Buyback Momentum: A Macro-Driven Catalyst

Hayes has consistently linked Bitcoin's price trajectory to macroeconomic liquidity trends. In 2025, he highlighted U.S. Treasury buybacks as a critical driver of market momentum. These buybacks, which involve repurchasing older bonds, inject liquidity into the financial system, creating a reflexive loop that benefits Bitcoin as a store of value. Hayes compares this to the Q3 2022 surge, where Bitcoin's price nearly sextupled amid liquidity expansion. He anticipates similar conditions in 2025, projecting Bitcoin could surpass $200,000 if deficit pressures and buyback operations escalate.

The Treasury General Account (TGA) also plays a pivotal role. Hayes predicts that once the TGA reaches its $850 billion replenishment target, liquidity will re-enter the private sector, including crypto markets. This dynamic creates a favorable environment for perpetual swaps and leveraged positions, as capital flows into high-growth assets according to analysis.

Regulatory Tailwinds and Institutional Adoption

Hayes' strategies are further bolstered by a shifting regulatory landscape. U.S. regulators, including the CFTC, have shown increased openness to crypto innovation, enabling exchanges to experiment with perpetual contracts and decentralized platforms. This regulatory clarity reduces friction for institutional investors, who are now more willing to allocate capital to crypto funds.

Moreover, Hayes has capitalized on Japan's negative real rates to justify aggressive altcoin acquisitions through Maelstrom. By aligning with macroeconomic trends, his fund positions itself to benefit from both Bitcoin's long-term trajectory and the short-term volatility of altcoins according to market analysis.

Conclusion: A New Paradigm in Crypto Fund Management

Arthur Hayes' approach to crypto fund management is a masterclass in leveraging liquidity concentration, perpetual swaps, and macroeconomic signals. By transforming exchange deposits into tools for market influence and buyback momentum, he has redefined how capital is deployed in the crypto ecosystem. As perpetuals become the dominant vehicle for equity and crypto price discovery, Hayes' strategies will likely serve as a blueprint for the next generation of fund managers.

The coming years will test whether traditional exchanges can adapt to this new paradigm or cede market share to decentralized platforms. For now, Hayes' vision is clear: the future of derivatives trading is 24/7, perpetual, and decentralized.