Key points:

C10 up 24% since inception.

Margin lending returns exceeded fees for the quarter in line with the objective of the fund.

Bitcoin dominance index reached a local peak of 71% during Q3, closing out the quarter at 67.4%.

Bakkt launches physically-settled Bitcoin futures contracts.

The crypto market remained largely Bitcoin-focussed for the quarter, seeing an increase in the Bitcoin dominance to 71% and slow sell-offs in the altcoin markets. Towards the end of the quarter, we saw a significant retracement in the market, with Bitcoin dominance dropping to 67.4%. Bitcoin returns were down 23% for the period, showing a sharp drop in price towards the end of September. This quarter saw the launch of the long-awaited Bakkt futures exchange and the announcement of CME Bitcoin options to be launched in early 2020, further increasing institutional on-ramps and risk mitigation tools.

The fund has performed well, achieving a 24% return since inception in April 2019. The cash hedge has been effective in preserving capital, with an 18% difference in returns for a similar fund without the cash hedge since inception of the fund. The graph below shows the performance of the fund versus a similar index strategy without the cash hedge. In Q3, the Crypto10 Hedged fund outperformed 9 out of 10 of the assets in the index.

Download the full quarterly report here.

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Kind regards,

Ryan Stützner

Investment Analyst

Invictus Capital