CryptoGrowth, which is open to global investors, was created by financial services professionals who collectively have more than 40 years worth of experience in the industry. After conducting significant market research, CryptoGrowth realized that while interest in the digital currency sector is “extremely high,” many professional investors have a very limited knowledge of the space. That is where we come in.
The careful design of the fund is meant to preserve the passive nature of the portfolio, allow outperforming cryptocurrencies to accumulate larger p
ositions in the fund, capture rising coins in the ecosystem, and exclude coins that do not meet institutional thresholds.
Although there are over 2,000 cryptocurrencies in existence, according to CoinRanking, the 17 coins in the CryptoGrowth portfolio today represent a coverage ratio of approximately 80% of the market cap of the entire crypto universe. By concentrating on the largest, most liquid segment of the universe, the portfolio has an inherent bias towards holding those coins the market believes have the highest probability of success.
Whether a coin’s protocol truly is the best in its specific category is of little importance in such a fragmented, irrational market. Capturing the beta of market sentiment instead of attempting to generate alpha by trying to pick the winning horse will prove to be the winning formula over time.