We’re delighted to add three new holdings to our Titan Crypto portfolio: Algorand (ALGO), Chainlink (LINK), and Uniswap (UNI).
These cryptos will further diversify the portfolio, expanding Titan Crypto’s coverage in Oracles (via LINK), DeFi (via UNI), and smart contract layer-1 platforms (via ALGO). We believe these categories will outperform the benchmark as adoption continues to grow.
We’ll be sending out an update with deep-dives on each of these coins on Thursday.
For now, here’s the TL;DR on our new crypto holdings:
Further diversifying where our conviction is strong
ALGO is a high-performance, next-gen blockchain with a massive war chest. You may recall ALGO from recent headlines, as the project launched a $300M initiative to attract developers to its ecosystem. We believe ALGO’s momentum will continue, with upcoming short-term catalysts including community governance and Algorand 3.0.
LINK is the first and largest decentralized oracle network that provides real-world data to smart contracts on blockchains. This is a vital function: without oracles like Chainlink, blockchains are like computers without an internet connection. There is also a looming major catalyst, with Chainlink 2.0 coming in the quarters ahead, introducing staking and other key innovations.
UNI is consistently one of the top DEXs by all key metrics. We believe integrating with upcoming Layer-2 roll-up solutions (such as Optimism and Arbitrum) will offer drastically higher transaction throughput and lower gas fees, alleviating past issues. UNI is at the center of Ethereum DeFi, which we expect to make a comeback with improved fundamentals and a range of new use cases.
Trading to expand
To fund these moves, we have trimmed our positions in Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA); we've also exited our position in Stellar (XLM). With these trades, we've aimed to ensure that your investment continues to be put to what we consider strategic use, in what we believe is a basket of diversified winners that could potentially generate even better returns on a per-unit basis.
In each instance, these trades are motivated by our desire to diversify and expand coverage in areas where we have high conviction:
We've trimmed our ETH position to balance our overall exposure in the Layer 1 smart contract platform category, which now comprises ETH, ADA, and ALGO. Our long-term thesis remains intact and ETH remains our largest position.
We've trimmed our BTC position because we believe the bullish trends we've seen from on-chain data may favor market risk-on behavior, potentially yielding more upside potential on the altcoins in Titan Crypto, going into Q4 2021. We're shifting weighting to support this thesis, and BTC remains our second largest position.
We've trimmed our ADA position because our short-term thesis has played out, with a +37% return since Titan Crypto's inception on August 10th. Now ADA's mission truly begins: we will continue to monitor its progress as ADA builds a sophisticated ecosystem of consumer-ready dapps.
We have exited our position in Stellar (XLM) strategically, as ALGO covers the same thematic bet. We entered XLM as a way to gain exposure to the growing institutional and government adoption of crypto. We believe ALGO offers similar value, plus a whole lot more.
With all coins in Titan Crypto, our rigorous quantitative and fundamental research enables us to enter, exit, and adjust the weightings of our positions at what we believe is the right time, with strong conviction.
Why choose Titan Crypto? What’s the value of a diversified, expert-managed crypto portfolio?
Given the vast universe of use cases for crypto and blockchain technologies, investing only in Bitcoin (or only in index funds which are mainly Bitcoin-weighted, as most institutional offerings currently are) would be akin to holding the majority of your portfolio in a gold stock, and missing out on tech stocks and other high-upside bets on growth.
Titan Crypto’s composition reflects our commitment to ensuring Titan clients are diversely invested in the key sectors where we have the highest conviction.
In crypto as in equities, we select names that we believe have strong fundamentals, world-class teams, strong and differentiated use cases, thriving ecosystems, and attractive prices. We combine our fundamental research with on-chain analytics that we believe enable us to spot trends well-ahead of the market.
As news ebbs and flows and hype swells and crests, we continue to keep our focus on securing the long-term prize for our Titan Crypto clients.
Thank you for entrusting us with your capital. It is a privilege to manage your investments, and one we never take lightly.
If you’re not yet invested, we’d love to welcome you into Titan Crypto when you’re ready to further diversify. As ever, our team is here to talk through any questions or concerns you may have. Send us an email at email@example.com or drop us a line via the Titan app.