The Q3 quarterly report on Crypto10 Hedged fund that incorporates a unique cash hedging algorithm that protects fund value in times of market stress has been released today.
The fund has performed well, achieving a 24% return since inception in April 2019. The cash hedge has been effective in preserving capital, with an 18% difference in returns for a similar fund without the cash hedge since the inception of the fund. The graph below shows the performance of the fund versus a similar index strategy without the cash hedge.
The report shows that the blockchain industry is clearly in a persistent state of growth as constant developments are being made globally on both the regulatory and infrastructure fronts. Major institutions such as Grayscale continue to expand their offering of crypto assets funds providing exposure to the altcoin market. They currently offer trusts for nine cryptocurrencies, including Ether, Bitcoin cash, stellar and Litecoin, in addition to Bitcoin itself, allowing both institutional and retail capital to invest in the wider digital asset.
Cryptocurrency use in financially distressed economies remains high, often used as an alternative currency in countries such as Venezuela where they are currently experiencing hyper-inflation in their local currency. Cryptobuyer, a Panama-based crypto start-up, has rolled out it’s crypto point-of-sale solution to over 200 stores in Latin America, including Samsung Experience stores in Panama and Venezuela, allowing customers to pay for products in Bitcoin, Litecoin, Dash and BNB.
Q3 saw the introduction of TUSD deposits for C10, allowing investors to deposit in up to 4 different currencies, including Bitcoin, Ether and Dash. Rebalances were conducted on a weekly basis, with active margin lending throughout the week to offset trading costs.
Token value decreased by 26.25% for the period, closing out Q3 at $1.236 per token, in line with the sharp drop in crypto markets for the quarter. However, token value is up 23.61% since fund inception in April 2019. The effect of the cash hedging strategy in preserving capital can be seen from mid-July to the end of September where fund value remained constant in the midst of precipitous declines in the altcoin markets.
For full Q3 quarterly report click here
About Invictus Capital:
Invictus Capital specialises in cryptocurrency investments and provides a complete range of fund choices for the investor wanting diversified exposure to the cryptocurrency market. CRYPTO20 was the first product released under the Invictus brand.
About CRYPTO10 Hedged
C10 offers an efficient way for investors to gain access to the top 10 crypto-assets with the benefit of drawdown protection during times of market stress, offering an efficient way for all investors to gain access to crypto-assets at lower levels of risk.