Funds Reports
Global Crypto Fund: September 2024 Report
September was marked for some recovery after the disastrous month of August. Digital assets made a comeback and 3CC Global Crypto rose 6%, still lagging our benchmark by 43bps (+6.45%). Ether has been our pain point, since we run an OW of 5%+ and his performance has been absolutely subpar in the last 3 months.
To back us up on our Ether optimism, we are enclosing well-structured research by Fidelity Digital where not only the nature of Ether and its differences to Bitcoin are developed but also the parametric rationale of including Ether into a portfolio is analyzed.
Returning to 3CC Global Crypto strategy, September is the month where we have decided to add our first "off benchmark" position: AAVE. For the ones that are not familiar with Web3 I invite you to click the link and follow to the AAVE app. AAVE is the largest peer to peer lending platform in the world and a "de facto" money market decentralized infrastructure, with a $11.9B of Total Value Locked, 56k different users per month and $53M of annualized revenue. If DeFi gets more traction, AAVE would certainly be one of the core applications of it. You can see more data here.
Also interesting to share the playbook of Blackrock for Bitcoin where the main rationale is to position the first cryptocurrency by market cap as a pure diversifier and as a risk off asset. Although debatable, we all agree that the risk contribution of a certain asset to a portfolio is not his isolated volatility but his contribution of risk in the covariance matrix of the entire portfolio. We say: we are not there yet, but we will reach there for sure.
Finally, I am glad to share that in the last survey done on Crypto Fund managers perspectives, run by Crypto Insights Group, we registered the highest conviction of the year for the price acceleration of the asset class in 1/3/12 months.
The election outcome is probably one of the reasons for optimism. In such a tight race, and after the price correction from the April highs, the likelihood of a Republican win is not still priced in, and we think it might happen as we get close to the election day. We don't like short term ideas but can't avoid it this time around.
Month Report GCF - September 2024
To back us up on our Ether optimism, we are enclosing well-structured research by Fidelity Digital where not only the nature of Ether and its differences to Bitcoin are developed but also the parametric rationale of including Ether into a portfolio is analyzed.
Returning to 3CC Global Crypto strategy, September is the month where we have decided to add our first "off benchmark" position: AAVE. For the ones that are not familiar with Web3 I invite you to click the link and follow to the AAVE app. AAVE is the largest peer to peer lending platform in the world and a "de facto" money market decentralized infrastructure, with a $11.9B of Total Value Locked, 56k different users per month and $53M of annualized revenue. If DeFi gets more traction, AAVE would certainly be one of the core applications of it. You can see more data here.
Also interesting to share the playbook of Blackrock for Bitcoin where the main rationale is to position the first cryptocurrency by market cap as a pure diversifier and as a risk off asset. Although debatable, we all agree that the risk contribution of a certain asset to a portfolio is not his isolated volatility but his contribution of risk in the covariance matrix of the entire portfolio. We say: we are not there yet, but we will reach there for sure.
Finally, I am glad to share that in the last survey done on Crypto Fund managers perspectives, run by Crypto Insights Group, we registered the highest conviction of the year for the price acceleration of the asset class in 1/3/12 months.
The election outcome is probably one of the reasons for optimism. In such a tight race, and after the price correction from the April highs, the likelihood of a Republican win is not still priced in, and we think it might happen as we get close to the election day. We don't like short term ideas but can't avoid it this time around.
Month Report GCF - September 2024
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Nuno Serafim
Managing Partner
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Nuno is an experienced financial executive with broad experience in the Asset Management industry, being board member of IMGA, where he served as Chief investment Officer, overseeing €3.4B of AuM before he founded 3 Comma Capital, together with Robert and Patrick Hable in 2022.
