This is a promoted article provided by Invictus Capital.
As the bitcoin price finds its footing among all-time high levels, following a meteoric bull run that’s been ongoing for nearly a year, investors are increasingly looking for ways to get exposure to the asset. But many of these potential Bitcoiners are also interested in the broader cryptocurrency market, as well as mitigating the volatility that is so common in the space.
Many within this group have found Crypto10 Hedged (C10), a unique index fund provided by Invictus Capital that allows investors to maintain a portfolio of the top-10 performing cryptocurrencies through a single ERC-20 token (the C10 token), while mitigating the volatility that traditionally comes with investing so widely in the cryptocurrency market.
The fund’s assets under management have eclipsed $8.5 million in recent days, with significant gains from BTC’s rally. But it may surprise you to learn that C10 has outperformed even bitcoin’s stellar returns across 2021.
“The dominant crypto asset, bitcoin, has seen tremendous growth over the recent bull run, surpassing its previous all-time high of $20,000 by over 150 percent to more than $52,000,” said Andrew Knight, Invictus Capital’s vice president of analytics. “Altcoins such as ETH have yet to reach quite the same level of outperformance relative to their 2018 highs, however, they have been staging impressive resurgence off of the back of bitcoin’s rally, contributing to the C10 fund’s performance.”
C10 is structured in a unique way to capitalize on a bull run like this — in which bitcoin is surging and lifting most of the cryptocurrency market along with it. But it’s also structured to mitigate the volatility that almost certainly comes with these crypto rallies as well.
“The index fund comprises the top-10 cryptocurrencies by market capitalization, which rebalances weekly — a frequency optimized by our quant team to enhance returns by locking in profits from surging assets, and similarly reducing exposure to assets in free fall,” a release from Invictus Capital explained. “There is also a cap of 15 percent per asset, which ensures further risk mitigation by preventing single cryptocurrencies from dominating the portfolio.”
Furthermore, C10’s rebalancing process allocates cash every week in response to market movements. This allows the fund to hedge against downside volatility by allocating up to 100 percent exposure to yield-bearing cash when the market is trending down. It’s a unique aspect that helps protect investors from the volatility that traditionally comes with bitcoin and cryptocurrency investment.
Ultimately, this structure is designed for medium- to long-term investors, those who are embracing this class of financial asset as a future that will only grow brighter. In this way, it is a much-needed product in the space and one that can help investors who might be adverse to other, more risky avenues of bitcoin investment to get exposure to BTC.
“C10 is a tokenized index fund that serves as an excellent diversification tool for those interested in adding cryptocurrency to their portfolios,” concluded Daniel Schwartzkoppf, CEO of Invictus Capital.