By looking at the market, measured by the MVIS CryptoCompare Digital Assets 25 Index (MVDA25), one could conclude that October was an uneventful month. The market mostly moved sideways, recording a slightly positive monthly performance of 4.3%. However, after taking a look at the performance of the top 25 crypto assets by market capitalization, one can see that it varied greatly. Ten assets ended the month in green, with the top three being Filecoin (+40%), Bitcoin (+28%), and Litecoin (+20%).
Bitcoin had a great month, and the capital continues to flow from altcoins into Bitcoin. By the end of the month, Bitcoin dominance stood at 63.7%, substantially higher than a month ago (58.0%).
Due to the increasing dominance and consistent positive performance, the Investment Committee decided to redistribute the portfolio and allocate 43.4% of the portfolio to Bitcoin. The only other asset actively invested in the Solidum Crypto Quant portfolio by the end of October was Binance Coin, with a 12.9% allocation. This tactical decision greatly contributed to the overall performance in the past month.
The portfolio outperformed the market in October, with a monthly gain of 5.34%, compared to the market’s return of 4.34%.