In the world of cryptocurrencies, the term “blue chip” refers to highly stable and dependable digital assets with a long track record of performance and a solid reputation in the market. Blue-chip cryptocurrencies are typically considered safe and secure investments due to their stability and reliability. PECULIUM has created a product allowing exposure to these blue-chip cryptocurrencies called the Blue-Chips Basket, which consists of 10 continuously developing and widely recognized assets within the ecosystem. This semi-actively managed basket aims to provide controlled risk and better performance than passive investing. Within this basket, one can count Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Avalanche (AVAX), Polkadot (DOT), Polygon (MATIC), Litecoin (LTC), and Ripple (XRP). These assets were precisely selected in order to develop the Blue-Chips basket.
Direct Investing Opportunity:
Direct investment in cryptocurrencies refers to buying and holding cryptocurrency assets directly, as opposed to investing in a fund that holds the assets on your behalf, such as an exchange-traded fund (ETF). Direct investment allows users to own and control the underlying assets of an investment vehicle instead of holding the vehicle itself. PECULIUM’s Top 10 Blue Chips Basket offers users the opportunity to directly invest in and manage a diversified portfolio of blue-chip cryptocurrencies.
Rebalancing:
Rebalancing is the process of adjusting the allocation of assets in a portfolio to maintain the proper balance of risk and return. This involves selling some components of the basket and purchasing others at a predetermined frequency to achieve the target allocation. For the Top 10 Blue Chips Basket, monthly rebalancing is carried out to maintain the expected level of risk return and adhere to the pre-established risk management and portfolio composition criteria.
Asset selection and allocation:
The selection and allocation of assets within the Blue Chips Basket is done through various filters, ensuring that they align with the established theme of blue-chip cryptocurrencies. The goal is to include a diverse and complementary mix of reliable, recognized assets with strong development potential.
The basket provides exposure to various major industries within the ecosystem, ranging from smart contract platforms to layer 1 and layer 2 blockchains with different consensus algorithms. This offers investors exposure to the most highly recognized, capitalized, and innovative projects within the ecosystem. Each asset in the Top 10 Blue Chips Basket is assigned a target allocation of 10%, ensuring an equally-weighted allocation between all assets in the portfolio. The basket is rebalanced every month to maintain this allocation.
This strategy has already offered since the beginning of 2023 a Year-to-Date P&L of 57,67%, and an Annualized P&L of 209,76% since its inception.
PECULIUM’s Blue Chips Basket presents a unique opportunity for investors to diversify and optimize their cryptocurrency investments. By providing direct exposure to a carefully curated selection of blue-chip cryptocurrencies and employing a semi-active management approach, the basket aims to deliver controlled risk and better performance than passive investing. With monthly rebalancing and a focus on asset selection and allocation, the Blue Chips Basket offers an innovative solution for investors looking to capitalize on the potential of blue-chip cryptocurrencies.
