Invictus Capital: Weekly Wrap 22.10
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Bitcoin hit a new all-time high above $66,000 this past week, marking a full recovery from its months-long slump, with the cryptoasset now having appreciated ~130% year-to-date. Bullish price action was catalyzed by the ProShares ETF debut, the first US Bitcoin futures ETF. Interestingly, the Proshares ETF, after just a few days of trading, risks becoming too popular for its own good, with it on course to break the CME’s limit on the number of front-month futures contracts permitted to be held by an ETF, illustrating incredible demand for crypto exposure.
Bitcoin wasn’t the only major to break all-time highs this week with Ethereum briefly breaking above $4,366 before finding support at the familiar level of ~$4,100. Despite Bitcoin and Ethereum reaching new highs, the best performing asset of the week was once again Solana, with the high performance blockchain up more than 30% for the week in what may be a sign of renewed interest in layer-1 blockchains.
While markets are incredibly bullish at present, the lack of mainstream participation — with the rally seemingly driven by institutional accumulation — indicates that this cycle may have much further to run. At Invictus Capital, we are strong advocates of long term investing and err on the side of caution when it comes to trying to time the market. Having a well diversified portfolio across the various asset classes and funds that Invictus has to offer is a great way to lessen portfolio volatility and improve your overall risk-adjusted returns. For those opting to take a more active role in their portfolio management, the IML Fund returns surged to an incredible 30% annualized rate this week, offering risk-averse investors a fantastic destination for profits taken on the recent runup.
In industry news, FTX raised $420,690,000 from sixty-nine investors in a genius marketing ploy. The Series B funding round values the derivatives exchange at $25 billion and includes Sequoia Capital and BlackRock, the largest asset management firm in the world. This valuation is up 39% from July when it raised $900 million in the largest-ever venture capital funding round in the history of crypto. FTX’s recent series of high-profile marketing campaigns has thrust the exchange into the mainstream and has resulted in its user base growing by 48%, with trading volumes up a similarly impressive 75%.
FTX’s announcement comes just one week after Binance launched a $1 billion funding program to accelerate the adoption of the Binance Smart Chain (BSC) and the blockchain industry as a whole. With the enormous quantity of institutional capital flowing into the development of blockchain infrastructure, it is undoubtedly a bullish signal for the crypto market in the long-term.
Traditional markets also saw green this week, despite a backdrop that included the release of disappointing industrial production figures in China and the US, continued concerns over the slowing Chinese economy, surging European inflation, and as a kicker, accelerating COVID infections in the UK driven by a new variant. While the TINA (There is No Alternative) narrative for equities continues to hold up, with regional indices up across the board, growth fears are manifesting in US tech outperformance, with the S&P500 reaching all-time highs again, outpacing the performance in Europe and Asia. Gold also gained on inflation concerns.
Indicators (15 October — 22 October)
- Invictus Margin Lending (IML): $1.28, +30.47% (weekly compound annualized rate)
- Crypto10 Hedged (C10): $8.28, +9.36%
- Crypto20 (C20): $5.17, +8.42%
- Invictus Bitcoin Alpha (IBA): $3.07, +12.13%
- Invictus Hyperion Fund (IHF): $0.482 (Updated Q3–21)
- Invictus Capital Token (ICAP): $13.67, +23.42%
- BTC: $62,293.11, +15.80%
- ETH: $4,062.81, +13.24%
- GOLD: $1,785.70, +1.75%
- S&P500: 4,549.78, +3.41%
Invictus Joined AIM Summit 2021
Matthew Finlayson, Co-founder & Head of Product, joined a panel with Nouriel Roubini that discussed The Post-COVID Digital Currency War.
Watch the video here.
Invictus Q3 2021 Quarterly Report
After a rocky period for cryptoassets over the second quarter, it was a pleasure to see the crypto markets perk up over the third, with none of the Invictus Capital suite of funds registering a decline and Bitcoin tracking towards its all-time high.
The Invictus funds continued their record of strong performance. In a quarter marked by increasing regulatory pressure in the industry, this is an excellent outcome. With all the Invictus funds appreciating throughout the quarter, the simple average return across our suite of four open-ended funds was an incredible 18.99%, which is equivalent to an annualized return of 100.45%.
The third-quarter report is now available and will touch on various exciting developments over the period, including company and fund updates, as well as comprehensive market commentary, spanning cryptoassets and the global macroeconomy. Enjoy!
Please find the latest quarterly report here.
Invictus Yield Vault
Invictus Capital is thrilled to announce the public launch of the Invictus Yield Vault. The Yield Vault allows qualifying lenders the opportunity to lend a minimum amount of $25,000 BTC, ETH and/or Stablecoins for highly competitive interest rates to Invictus Alpha, Invictus Capital’s trading division.
The Vault is now seamlessly integrated into the investor portal on the Invictus Capital website! Prospective crypto lenders now have a single web location to effortlessly view Yield Vault information, crypto lending interest rates, FAQ information, and contact our Yield Vault Team.
To view our rates and contact our Vault team, please visit our landing page.
Borrow Against Your Crypto With Peace of Mind
Crypto users can now borrow against their crypto secure in the knowledge that their investment will not get liquidated.
Invictus Alpha (the trading company of Invictus Capital) has engineered a new product that is offering users the opportunity to borrow USD-based stablecoins (or BTC and ETH) against BTC and ETH with no risk of liquidation.
Schedule a call with the Invictus Sales Team
Schedule a call with Tom or Ivor from our Fund Sales team if you have any questions or need assistance with your Invictus investment(s).
Other News & Links
- Invictus in the Press/News
1. Why Crypto Index Funds Make Sense
2. INVICTUS CAPITAL LAUNCHES FIXED-RETURN YIELD VAULT FOR BITCOIN LENDERS
- Crypto exchange FTX raises $420 million from 69 investors, in meme funding round
- Syntropy News
1. Marketing Veteran Kevin Gavin Joins Syntropy as Chief Marketing Officer
- Delta ‘Plus’ Covid variant may be more transmissible
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