Hyperion Quarterly Report

Q3 –2018

Please find a link to download the Hyperion Quarterly report for Q3 2018 here.

“The quarter has seen the continuation of the bear market and the general decline in the value of cryptocurrencies. The flight to the relative safety of Bitcoin has been evident with its proportion of the crypto market capitalization rising from 43% to the re-establishment of dominance at 51%. Alternative cryptocurrencies have declined more so than Bitcoin, as have ICOs whose successes have been almost entirely dependent on overall market sentiment. ICO fundraising has been on a down-trend since January with market pressure being exerted on investors. This reality-check afforded to ICOs by the sobering market has made clear the delineations between speculation and substance and is ultimately positive for the space moving forward.

A fundamental premise of the Hyperion fund is its focus on fundamentals, meaning investments have been made in projects that possess the qualities necessary to survive different market regimes. Though market sentiment will always affect valuations, the long-term case for Hyperion’s investments remains strong. Their focus on delivering tangible value means the investment case is not reliant on a buoyant market necessarily returning at any point in the future.

The crypto-economy has received a steady drumbeat of positive news over the quarter, with the announcement of Bakkt being the most prominent. Bakkt aims to build a platform that allows individuals and institutions greater access to digital assets. It is backed by the Intercontinental Exchange (ICE, owner of the NYSE) and will, in 2018, use futures market infrastructure to introduce physically delivered Bitcoin to Global Markets. This firmly cements digital assets as part of the global economic infrastructure and supports the efficacy of the ICO model. This model will undoubtedly continue to develop, and likely change substantially, but the debate of whether or not the space will continue can be considered put to rest.

The IHF token began trading on 17 September with prices in the region of the accounting NAV. This represents a substantial gain in terms of ETH, which accounted for the majority of the Hyperion raise. Volume, however, remains low, indicating that holders of the token either have a long-term view on the fund, or a higher expected value.”

Best Regards,

Andrew Knight and the Invictus Capital Team