GSG Market Plus (GSGM+) – February 2025

Overview

We present our update of the GSG Market Plus (GSGM+) model portfolio for February 2025. This portfolio strategy aggregates our Research views across the broader market of listed cryptocurrency tokens and attempts to quantify how much we would overweight or underweight different segments of the cryptocurrency market while staying fully invested on a long-only basis. We then further select specific tokens we would allocate capital to, based on relative fundamentals and/or individual upcoming catalysts.?

The GSGM+ strategy returned 7.1% in January, behind the 8.3% performance by the BGCI based on a similar rebalancing schedule. This compares with 12% BTC and -2% ETH in January.

For January, we expected a bullish sentiment to take over as we approached Trump’s inauguration and market participants began returning from the holiday season, resulting in the beginnings of a proper altseason where higher returns would be found in altcoins. However, the downturn that began taking place mid-December lingered into the earlier part of January. Furthermore, when markets did begin picking back up again close to inauguration day, it was mainly in Bitcoin and a few other tokens that will potentially benefit from regulatory clarity in the U.S. such as XRP and LTC. For the majority of other altcoins, January was a tough month as altcoins lost value in relation to the price of Bitcoin, in particular Ethereum.

Nevertheless, we’re continuing to maintain a slightly underweight position in Bitcoin to stay overweight in altcoins and we continue to look for the Pectra upgrade, scheduled for Q1, to revive some interest in Ethereum, so we’re increasing our weighting to ETH.

We’ve also adjusted a few protocol, Defi, and RWA picks to allocate to projects that are exhibiting signs of strength in recent times (LINK, ONDO) and are reducing/removing exposure to projects that have shown recent signs of underperformance (MKR, AVAX).

For all of our allocations and the reasoning behind our decisions, please refer to the following page:

February Changes

Increasing Ethereum, ONDO and Chainlink; Reducing Avalanche and MakerDAO

Sector Views (weighting in relation to BGCI)

Bitcoin

Underweight @ 34.0%

• We maintain an underweight in our Bitcoin position, expecting higher return potential in altcoins.

?Ethereum

Overweight @ 36.0%

• We are increasing our position in Ethereum from neutral to take advantage of potential renewed interest from the market due to the upcoming Pectra Upgrade (Q1).

Protocol

Underweight @ 19.1%

• We are reducing our weighting in Avalanche, as the gaming narrative that AVAX was positioning itself for has not yet amounted to substantial gains.
• We are maintaining our position in Near.

DeFi

Overweight @ 5.9%

• With Ethena’s rollout of a stablecoin backed by BlackRock’s BUIDL token and growing demand for high-yield driving USDe to the third-largest stablecoin, we are maintaining our position in ENA.
• We removed our position in MKR as it is underperforming in recent times. ?

Infrastructure

Overweight @ 3.5%

• We are increasing our?overweight position in Chainlink due to its collaborations with major financial institutions to enhance blockchain interoperability and real-world asset tokenization. It is also a prominent fixture of the World Liberty Financial portfolio.

RWA

Overweight @ 1.5%

• We have slightly increased our weight in the RWA sector following Ondo Finance’s expansion, as it has integrated with the XRP ledger, reflecting broader adoption and liquidity potential. It also completed a large token unlock without suffering from a major drop in token price.

Please find below the February 2025 revised target allocations for the GSGM+ model portfolio. Feel free to reach out to GSG investor relations and research departments with any questions or inquiries.

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