This blog post is the seventh report in 2024 about the Kaleido Digital Asset Core Strategy. Read more about our crypto portfolio framework here. Don't forget to sign up to our newsletter to get the next reporting straight in your mailbox!
The month of June was characterized by the ongoing sideways consolidation in the crypto market. Typically, such phases are characterized by relatively large price movements, with Bitcoin alone moving in a range of over 20% between just under USD 72k and USD 58k.
Accordingly, the KDAC strategy ended the month at -15.6%, with Share Class I of the KDAC Fund losing only -14.1% due to the cautious portfolio construction. In the second quarter, Ether (ETH) was the best performer in the portfolio with a performance of 12%, ahead of Bitcoin (BTC) with 6%.
Another reversal in June after the positive May
The ETH/BTC pair, which is slowly but surely approaching the upper end (at 0.056) of the intensified downtrend that has formed since the beginning of 2024, is therefore exciting to watch. A breakout from the latter could then trigger further gains up to 0.08 and also suggest further price gains for other altcoins.
KDAC keeps its promise as a diversified core strategy
The equally weighted KDAC strategy in particular would then also benefit from this development. In this respect, it will be interesting to see how the often relatively strong summer months of July, August and September before the US elections will affect the strategy. Staking rewards, again, play to continue an important role during this sideways movements in the market as new coins are being added to our portfolio every day.
Ongoing coin accumulation through Staking
The Fear & Greed Index, which often stands for psychological momentum, is interesting to observe. It has also cooled down considerably in line with the price trend and is currently in neutral territory, but at the same time has reached its lowest value since last fall.
Fear & Greed Index cooling down
As mentioned in our blog last month, we are also seeing continued outflows of both Bitcoin and Ether from crypto exchanges. Even the Ethereum Spot ETF expected for mid-July was unable to halt this trend. Most recently, the filing by Van Eck also provided the first indications of an upcoming Solana Spot ETF in the medium term.
Continued outflows of Bitcoins from crypto exchanges
Similar picture for Ether (ETH)
The coming weeks will certainly be exciting. On the one hand, the summer months are often quiet and correspondingly low in volume due to the vacation season. On the other hand, risk assets such as cryptos tended to perform strongly in July, August and September before the US elections, before uncertainties put the market under further short-term pressure in October. In principle, however, we believe that the bull market will probably continue for the next months, but will also be characterized by several setbacks. In the medium term, it is therefore worth being positioned in the market and being able to benefit from the various developments. Patient investors will benefit the most in the end.
Disclaimer: This piece of information is for marketing and entertainment purposes only and should not be taken as an investment recommendation. Remember that all investments involve risk. Please read our full Marketing Disclaimer here.
Markus Abbassi: August 08, 2024
Management Summary KDAC Strategy lost 2.3% in July but with increased volatility Market dynamics are dominated by both economic and political drivers
Markus Abbassi: July 08, 2024
Management Summary KDAC Strategy lost 14.1% in June continuing the sideways consolidation Staking rewards grow steadily, and interest in digital...
Markus Abbassi: June 04, 2024
Management Summary KDAC gained 14.4% in May, with large-caps hinting at an altcoin rally Staking rewards grow steadily, and interest in digital...
Markus Abbassi