GSG Market Plus (GSGM+) – October 2024

Overview

We present our update of the GSG Market Plus (GSGM+) model portfolio for October 2024. 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 11.8% in September, in line with the 11.8% performance by the BGCI based on a similar rebalancing schedule. This compares with 12.4% BTC and 6.7% ETH in September.

For Sept, our outlook on BTC was positive, reflected by the overweight position we kept on Bitcoin for the past few months, even in the face of potential further macro weakness, as we felt BTC would exhibit more strength over other tokens during this stretch. Our estimation that Bitcoin dominance would pick up came to fruition, hitting a mid-term high of 58.7% on Sept 20th. However, it has now fallen considerably to 57.3%, as of time of writing, as we’ve seen a surge in altcoins across the board in the past week and a half.

While this could be a temporary period of relief for altcoins that have been battered in the past several months, we feel it could also be the beginning of a period known as altseason, where altcoins outperform BTC performance. However, we do want to note that not all altcoins will benefit from this market dynamic, as some have certain factors associated with them that will prevent price appreciation in the mid-term. ?

Nonetheless, in light of this shift in the market, we are adjusting our positions in both BTC and ETH back to neutral from overweight in order to allocate more of our portfolio to assets we feel have more growth potential in the near-term. Additionally, we are realizing some profit in AAVE, one of our best performing tokens to date.

In Protocols, we’ve added three new positions that have been showing strong signs of outperformance in recent times. Lastly, we’re increasing our allocation to LINK due to expectations of continued outperformance in its sector and the significant development the project continues to exhibit.

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

October Changes

Increasing Chainlink; Decreasing Bitcoin, Ethereum, and Aave; Adding Stacks, Near Protocol, and Avalanche ?

Please find below the August 2024 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.