In April, the crypto market stood firm, with a steady price appreciation throughout the month. During the first week, the Solidum Crypto Quant Strategy generated mixed signals. As a result, the Investment Committee deemed it most reasonable to invest conservatively, with a 50% exposure to the market. Nevertheless, the market recorded a 21.3% gain in the first nine days. This was followed by a two-week consolidation phase during which time the portfolio structure remained the same. However, by the end of the second week, the strategy generated a buy signal for nearly all assets in the portfolio, except Bitcoin Cash (BCH). Thus, the Investment Committee allocated 92% of the portfolio to active investments, with only BCH maintaining a 50% exposure. The market continued to recover from February/March losses and managed to record a robust positive performance of 39.8% by the end of April.

All of the top 25 assets by market cap reported a positive performance in April. By the end of April, the highest weighted assets in the portfolio were Bitcoin (25.9%), Ethereum (16.3%), Tezos (16%), Chainlink (15.5%) and Binance Coin (15.3%). Moreover, Tezos, Chainlink, and Ethereum were all among the top five performing assets in the previous month, with a superb performance of +70%, +64%, and +55%, respectively.

Chart 2 - Solidum Crypto Quant Top Performers (2020-04)

The Solidum Crypto Quant Strategy slightly underperformed the market with a positive monthly performance of +23.83% compared to the market’s performance of +39.8%. However, if we take a look at a longer timeframe, the Solidum Crypto Quant Strategy recorded a +33.28% gain in the past three months, whereas the market recorded a negative performance of -6.67% during the same time. In the past six months, the strategy also strongly outperformed the market with a +53.51% gain, whilst the market recorded a six-month return of +5.02%.

The average cryptocurrency fund, based on the Barclayhedge Cryptocurrency Traders Index*, recorded a gain of +17.10% in April. Therefore, the Solidum Crypto Quant Strategy recorded a substantially better performance in April compared to its peers.

*There are 19 crypto funds included in the index at the time of writing.

Chart 1 - Solidum Crypto Quant Performance (2020-04)
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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.