Bitcoin holders borrowing to finance leveraged trading retain their original investment and take on another source of exposure. Their coins continue to fluctuate, the financed position produces its own gains or losses, and the dollar loan remains payable regardless of either result.
The attraction is access to trading funds without selling cryptocurrency upfront. There’s risk involved, too, tied to a volatile asset supporting debt while using the proceeds for a position that already involves leverage.
A new financing arrangement lets eligible Kalshi Prime brokerage customers borrow dollars from affiliate Kalshi Katalyst against bitcoin, ether or eligible stablecoins held with BitGo Bank & Trust, PYMNTS reported Wednesday (Oct. 21),…
