Crypto10 Hedged is an open-ended passive fund which utilizes the C10 ERC20 token, providing investors with exposure to the top 10 cryptoassets by market capitalization. A dynamic cash hedge has been implemented as a unique feature which preserves capital during periods of significant drawdown.
Exposure to an index of the top 10 cryptoassets provides investors with a level of diversification among the sub-sectors of the nascent cryptoassets market. Weekly rebalancing allows for potential periodic derisking and index tracking. A dynamic asset allocation framework allocates between a passive cryptoasset index base strategy and a cash position based on a variety of fixed parameters which enables enhanced downside protection while preserving upside participation.
An algorithm was developed utilizing data science techniques, which provides a ruleset to dynamically allocate or deallocate a portion of the fund’s capital to cash.