Tuesday, Jan 25th 2022

Trade Update: Moving weight in Titan Crypto

Investor Update

Adding Bitcoin and cash over a volatile weekend

Over the weekend, our team shifted positions in our Crypto strategy. Clients are now overweight Bitcoin, Ethereum, and Cash, while portfolios still maintain exposure to the altcoins we have the most conviction in long-term. While making these updates, we were also able to harvest losses for clients in some positions, which may help offset taxable gains elsewhere in client portfolios.

The table below recaps these moves:

Crypto trades

With these moves, we believe we’ve accomplished the following for clients:

  • Increase exposure to Bitcoin as a “safe haven” Crypto asset;
  • Build a strategic cash reserve to deploy in the future;
  • Remove exposure to lower-conviction holdings;
  • Trim exposure to higher-risk, yet high-conviction, holdings; and
  • Harvest losses in some holdings which could help offset taxes elsewhere.

Bitcoin with a side of Fiat

Two weeks ago, we wrote that we believed risks in the crypto market were skewed to the upside. In that note, however, we noted that we were monitoring Bitcoin’s price, flagging $40-$42K as a key support level. Over the weekend, that support level was broken, and in our view, it became time to act.

Almost as soon as Bitcoin fell below $40,000 we saw prices fall to $36,000. At the time, we elected not to sell given the number of massive liquidations we were seeing on-chain and how oversold Bitcoin appeared according to our momentum indicators.

Amid a brief, but smaller than hoped for, relief rally on Saturday, we began making changes in our Crypto strategy. In this rebalance, we elected to overweight Bitcoin, Ethereum and Cash in the strategy for two main reasons:

  • The Bitcoin dominance indicator — or Bitcoin’s market cap as a percentage of the total crypto market — remained above the historically significant level of 40%, indicating that investors are treating BTC as a safe haven; and
  • Recent volatility has led to many altcoins’ market structure becoming temporarily impaired.

These short term moves are very painful but not overly surprising with a nascent asset class. We remain bullish on crypto over the long-run, but there is a time and place to manage risk, and we believe time is now.

Taking our alts off main

Alongside these increased weights, we elected to exit Cardano (ADA) and significantly reduce our position in Solana (SOL).

In our view, Cardano investors and developers are realizing the structural challenges in creating a fully decentralized solution for batch processing transactions. We believe we are at least 9 months away from a substantial DApp ecosystem being built on Cardano to drive more interest.

With regard to Solana, although we’re seeing a thriving NFT ecosystem come alive, the network has been struggling with incoming traffic, which has led to multiple outages. We believe in the team, but would like to see them develop solutions to deal with network stability before increasing our SOL position.

We’ll continue to remain vigilant and keep you updated on our findings. We always appreciate your trust in our team, but particularly during challenging periods.

Best, Gritt

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

7 Alternative Cryptocurrencies (Besides Bitcoin & Ethereum)


Guide to Cryptocurrency Taxes


What Is the Proof of Work (PoW) Algorithm?


What Is Bitcoin and How Does It Work?

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. The introducing Broker Dealer is Titan Global Technologies LLC, a registered broker-dealer and member FINRA/SIPC. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.