SwissRex AG

SwissRex Crypto Fund October 2019 Performance +8.60%

SwissRex Crypto Fund October 2019 Performance +8.60%

The crypto market first continued its downturn, before spiking in the last days of the month. SwissRex Crypto Fund finished October with a strong performance of +8.6%.
Performance in CHF                   October             since inception
SwissRex Crypto Fund                         + 8.60%                          - 7.6%
CCI30 Index                                          + 10.3%                          - 49.7%
Asset Allocation:
Based on our fundamental analysis, we increased the exposure from 70% to 110% into the downturn of September/October. Therefore, the fund could fully benefit from the spike. There are only six months left until the halvening event in April/May 2020. Hence, we keep the small leveraged position in the fund (maximum exposure is 120%). A selected group of Altcoins started to outperform Bitcoin, as predicted by our cycle analysis. Accordingly, we increased the Altcoin exposure to 25%.
Selection (new positions communicated with a one month lag): 
In September we bought Ether, Tezos and Chainlink. 
Ethereum is changing the software to proof-of-stake. This means that soon a stake in Ether is needed to get the block reward. Other than that, more and more Ether is locked in decentralized finance (DeFi) applications. Proof-of-stake and decentralized finance could trigger a boom in Ether, similar as ICOs did in the last cycle. 
Tezos is a rising competitor of Ethereum and addresses key barriers facing blockchain adoption to date: smart contract safety, long-term upgradability, and open participation. The Tezos foundation announced to tokenize 640 million USD in planned real estate development by Alliance Investments.
Chainlink is the number one data provider to the blockchain. As data can trigger automatic payments by smart contracts, it is essential to collect reliable data in a decentralized manner and Chainlink is ideally positioned to take advantage of this. They just signed a cooperation with Google.

General Notes:
China`s central bank will soon launch the Renminbi stable coin. Fast and cheap Renminbi transactions could threaten the USD hegemony. Although, this could be an argument for Facebook`s Libra token, we think that it is more likely that the US central bank will come up with its own USD backed crypto currency. Anyway, blockchain is coming at full steam and is arriving at the largest institutions.

  • SwissRex introduces the 'Capped Stock to Flow Model' to value Bitcoin
  • @SwissRexAG is on Twitter! 
  • Tracker Certificate on SwissRex Crypto Fund will be launched in January 2020. Due to a Swiss ISIN number, subscriptions will be possible through every bank! 
  • New distribution partner in Switzerland: Crypto Consulting AG
  • Upcoming Fund Presentation Event in Jan/Feb 2020 in Zurich. We'll keep you posted!