Tag: c10

C10: An All-Weather Approach to Investing In Cryptocurrencies

The future of cryptocurrencies looks bright as an increasing number of investors are looking for alternative investment opportunities, but many remain hesitant because of the market’s extreme volatility. Crypto10 Hedged is an index fund that allows investors to own a portfolio of the top 10 cryptocurrencies with a single token (C10) while mitigating risk and volatility through its dynamic cash hedging algorithm.

C10 has performed exceptionally well since its inception in 2019, with the fund’s assets under management recently surpassing $8.5 million on the back of a red-hot rally for cryptoassets over 2021 to date, with the fund outperforming Bitcoin over the period. The dominant cryptoasset, Bitcoin, has seen tremendous growth over the recent bull run, surpassing its previous all-time high of $20k by over 150% to $52k. Alt coins such as ETH have yet to reach quite the same level of outperformance relative to their 2018 highs, however, they have been staging an impressive resurgence off the back of Bitcoins rally, contributing to the C10 fund’s performance.

The C10 fund follows a passive strategy with medium- to long-term investors in mind. It is the ideal option for those who are more risk-averse and looking for an all-weather approach to investing. The fund helps investors ride trends effectively – taking advantage of cryptocurrencies’ rapid price appreciation during bull markets, but reducing exposure during bear markets by increasing its cash position.

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. There is also a cap of 15% per asset, which ensures further risk mitigation by preventing single cryptocurrencies from dominating the portfolio. 

The weekly rebalancing process takes the dynamic cash allocation into consideration. By allocating cash weekly, the algorithm has the flexibility to be responsive to market movements. The fund is able to allocate up to 100% exposure to yield-bearing cash during periods of market drawdown, which effectively hedges the fund from this downside volatility. When the market stabilizes, the fund is reinvested into cryptocurrencies. This strategy is one of the main factors which makes the Crypto10 Hedged fund a safer investment – allowing investors peace of mind that is not typically associated with crypto investments. 

The Crypto10 Hedged investment fund is open-ended and accessible via the Invictus Capital Investor Platform, which has the advantages of convenience and complete transparency. Investors do not have to trade through an exchange, and liquidity is available at any time to enter or exit the fund.

To invest in the Crypto10 Hedged fund, investors will follow a similar subscription and redemption process to that of traditional mutual funds. To buy the C10 token, you can visit the newly-redesigned Invictus Capital Investor Platform. The NAV of the fund is displayed in USD and is updated in real-time. 

FREQUENTLY ASKED QUESTIONS

Which data science techniques are used to rebalance C10?

C10’s cash allocation is rebalanced weekly by using a proprietary machine-learning algorithm that underwent extensive backtesting. Apart from the main parameter, which is the total market cap, it considers many factors in portfolio construction such as mean-variance through correlations paired with risk parity analysis. The algorithm is also set up to consider specific inputs from the in-house Invictus Capital analyst team for qualitative traits. Lastly, it uses various market indicators to determine cycles, momentum and technical signals to determine optimal cash weightings. It is continuous in the learning process, continually comparing realized and forecasted performance. 

What are the fees?

Ongoing costs include a 1.7% fee per annum for management, administration and custody. These are always reflected in the C10 token price displayed. A 0.5% fee applies for each subscription and redemption, to protect against scalping and arbitrage.

Which currencies can you use to invest with?

Investments into C10 can be made with Bitcoin (BTC), Ethereum (ETH), DASH, TrueUSD (TUSD), Tether (USDT), Mastercard, VISA or bank transfer. No minimum investment applies.

How to redeem my C10 tokens?

C10 tokens can be redeemed for their total value in ETH through the Investor Portal. The C10 smart contract holds liquidity for redemptions which are processed hourly. A forward-pricing model is used.

What are the smart contract details?

C10 is an ERC-20 token issued on the Ethereum blockchain. The smart contract address is 0x000C100050E98C91f9114fa5Dd75CE6869Bf4F53, and there are 18 decimals.

For further questions or more information, investors can talk directly to the Invictus Capital team on Discord or Telegram 

Image source: Invictus Capital Media

Why You Should Use Invictus Capital’s C10 Fund to Buy the Dip

Recently, the cryptosphere has garnered plenty of media attention with bulls, bears, advocates, and cynics all indiscreetly butting heads. Many are quick to callously point fingers at crypto’s adolescence and lack of historical track record, quoting rigid institutions’ partisan observations as truth. But, some are cognizant of the inevitability and necessity for the industry’s development, citing crypto’s recent slump as a buying opportunity worthy of being capitalized upon.

It is of little surprise to see more multinational financial institutions and prominent investors showing an intrigue in, and an acceptance of cryptocurrencies and the distributed ledger technology that power them. For decades, the traditional financial sector has been characterized by its opaqueness. Invictus Capital’s utilization and dependence on blockchain technology to execute and complete irreversible, decentralized transactions, overcomes many of traditional finance’s shortcomings by improving efficiency and enabling the democratization of access to a financial ecosystem formerly dominated by the ultra-rich. This is just one example of astute usage of this emergent technology potentiating a sector-wide revolution that is currently unfolding. As these revolutions start to take hold, savvy investors will be able to continue to capitalise on potentially formidable cryptoasset investment returns.

By looking at Bitcoin (BTC) as a bellwether for the entire crypto market, we’ve already seen the cycle of boom and bust repeat many times — with the experience of the December 2017 and March 2020 crashes likely ingrained in the minds of any seasoned crypto investor. Time and time again, however, Bitcoin has rebounded to keep its long-term upwards trajectory intact. As such, it is pretty clear that crypto, to many traditionalist’s horror, is going to be kicking around for a lot longer than they’ve anticipated — even if volatility is here to stay for some time yet. And if anything, crypto’s boom is just getting started!

If we cast our memories back to mid-December 2017, BTC had its arguably most memorable crash, losing close to half of its value in the week following the peak of the multi-year bull cycle that saw Bitcoin approach $20,000 (with ±2,400% annual returns registered at the peak). Many were quick to point fingers and reiterate the immortal words of ‘I told you so’, believing once again that the traditional financial sector’s unerring forecasts were correct. The most recent bull-run has put those forecasts to bed.

Not many of us were far-sighted enough to be early investors in BTC, but if you did purchase 1 BTC in December 2016, a year before the December 2017 crash, you’d still have run a cool ±870% profit in June 2018 (around the time BTC began to restabilize). Traditional finance often chooses to ignore these profits and incessantly nitpicks at crypto’s price shocks, fueling the narrative that crypto is a pseudo asset class, or bubble. Not only do we see this as incorrect, but we believe that their assessment is not only clouded by bias and oversight, but does little to address and understand the inevitability of crypto market volatility during its early development (we’re still in these early stages!).

In our article about the Invictus Margin Lending Fund (IML), we highlighted crypto’s inherent volatility in detail. Crypto’s volatility is far more prominent than in traditional financial markets (equities, bonds, real estate, etc.). Part of this is driven by the highly speculative nature of crypto investments — in which the investment thesis is typically that an individual crypto will become a key player in some facet of the ecosystem in which it serves; for Bitcoin this typically revolves around its use as a store of value (cannibalising gold demand) or as a means of payment (threatening the dominance of payment providers like Visa or PayPal). However there are a myriad of cryptos, many of which aim to revolutionise niche industries.

The ebb and flow of market participants’ expectations for the highly uncertain future drive major volatility on the demand side. A similar dynamic was observable during the Dot-com bubble, but despite the 2001 crash, some of the hot stocks of the era have come to dominate their respective sectors. However, compounding this effect on the demand side are most crypto’s inelastic supply schedules — meaning supply does not adjust to changes in demand, as you would typically see in commodity markets. But despite the volatility inherent in crypto markets, the long-term trend is very clearly up, and investors would do well to zoom out on the charts during brief market downturns. Many investors have, however, been burnt by market corrections in the past, panic selling and locking in losses at the worst possible time. If you have conviction over the future path for the industry’s long term, but cannot stomach the volatility, a set-and-forget index fund investment that leverages the power of diversification may be the answer. Even better, a smart index fund — like Invictus Capital’s C10 — can help rein in volatility on the way to the proverbial moon! 

C10 is an open-ended smart index fund that provides investors with exposure to and diversification across the top 10 cryptocurrencies (based on market capitalization), whilst limiting a loss of capital through a dynamic cash hedging mechanism. To limit any human oversight, an algorithm provides a ruleset to dynamically allocate or deallocate a portion of the fund’s capital to cash as a market risk hedge. For example, during BTC’s March 2020 crash, where it lost nearly 60% of its value, the algorithm adopted a position holding close to 95% cash. This cash hedge enabled investors to experience superior downside protection, whilst also preserving upside participation.

Whilst retaining an objective stance on your investment, and keeping faith in crypto and blockchain technology’s exponential rise, Invictus Capital’s C10 fund can provide you a trusted medium to capitalise upon crypto’s dip.

With the C10 token currently valued around $6.28, after rising to $8.50 before crypto’s most recent dip, shouldn’t you consider buying the dip with Invictus Capital’s C10 fund? To invest in C10 today, please visit Invictus Capital’s website. 

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