Q4 2020 - Q1 2021
Capturing Macro Growth
The cryptocurrency markets are part of the new age of finance. They are part of a broader movement of innovation and technological breakthrough that represents a digitally disruptive future for all industries. With the Bitcoin halving occurring earlier this year in May and bringing on a new surge of institutional interest and regulatory recognition, as well as Ethereum 2.0 set to enable a more scalable and lucrative ecosystem, our fund has positioned itself uniquely for Q4 2020 and 2021, to capture value from these transformations. Our 5 investment baskets have direct positive exposure to growth across Bitcoin, Ethereum and selected DeFi protocols. B 01: Conservative basket (BTC, Stablecoins: 70%*AUM), IB 02: Semi-Conservative basket (BTC, ETH, XRP: 20%*AUD), IB 03: Moderate basket (ETH, LINK, BNB: 6%*AUM) IB 04: Risky new markets basket (New DeFi protocol and governance tokens: 4%*AUM), IB 05: Black swan downside protection basket (2%*AUM).
Find Winners. Early.
Investing in high growth potential entrepreneurs, crypto projects and protocols was one of the key successful business vertices of Blockchain Partners Holdings (GDA’s precursor company). GDA will be taking a similar approach in terms of actively investing and supporting high-growth potential early-stage technologies, protocols, pre-seed and seed-stage Ethereum projects across the Web 3.0 stack. GDA will be involved in direct acquisition of selected assets and rights when the protocols and projects are early. Our goal is simply to help the most technologically compelling and growth-driven companies in the space to flourish. GDA Fund’s sister company, GDAC, is uniquely positioned amongst governments and large scale corporations in emerging regions like the UAE, working with companies to scale, commercialize their technologies and act as an alternative investment vehicle channel to the fund.
Continual Improvement On Crypto Black Swan Insurance
GDA’s core broader vision is to position as a leading tail risk fund native to digital assets. Given the more extreme nature of volatility and manipulation apparent in the crypto markets, we believe that a tail risk approach is not only necessary but also enables a more robust risk taking approach. Our Black Swan Insurance strategy sets out to hedge against the volatility of Bitcoin through a daily rebalancing methodology that aims to continually maintain convexity against large systematic crashes.
The GDA High Volatility Protocol
Our index consists of a basket of long only crypto assets, crypto derivatives (short and long) and tail hedging strategies with a daily rebalancing methodology (as summarily described before). In the coming weeks we will work with a Paris based index benchmark administrator on a time series of the 3 buckets, the index governance, IT funnel preference (API, sftp) to push the data into a public ledger. This will allow us to offer greater transparency for the index performance and its composition. Working with Dubai Financial Services Authority (DFSA) to launch a hybrid crypto Asset Backed Security (ABS) allowing institutional investors to gain exposure under a unit trust structure.
Capital allocation .
A list of investment allocation segments of the fund for Q4 2020 and Q1, Q2 2021
IB 01: Conservative basket (70%*AUM)
IB 02: Semi-Conservative basket (20%*AUM)
IB 03: Moderate Bucket (Active trading) (6%*AUM)
IB 04: Risky new Markets (4%*AUM)
IB 05: Black swan downside protection (2%*AUM)