SINGAPORE, June 10, 2024 — Amanda He, Head of ChainUp Investment, a leading crypto asset management firm, presented a compelling case for the transformative potential of crypto investments at the recent Asia Investment Summit. She highlighted the dynamic landscape of digital assets, outlining strategic approaches and market trends that underscore the growing importance of crypto in modern investment portfolios.
Beyond Bitcoin: 2024 Bitcoin Post-halving Insights
Innovative Crypto Strategies
Amanda revealed ChainUp’s one of the successful investment strategies, capturing funding rate arbitrage return from a unique derivative instrument in crypto, perpetual swap. The firm achieved an impressive 25.42% cumulative return with a Sharpe Ratio of 6.25 from Q3 2023 to Q1 2024 with a delta-neutral position.
Bitcoin’s Bright Future
She underscored Bitcoin’s historical price surge of 630% in 2021, 3,070% in 2017 and 9,780% in 2013 post-halving cycles, predicting further growth in the upcoming cycle (2024-2028), driven by innovations like modular blockchains (fees generated from Celestia increased by 13.7% in the past 3 months), Bitcoin Layer 2 solutions (9-figure in US dollar was raised for this sector in 2024), decentralized AI (the sector is currently valued at approximately $40 billion), and GameFi (leading protocol, IMX had approximately 35% increase in weekly active users in the past 30 days).
Diversification Powerhouse
She highlighted Bitcoin’s negative correlation with major assets, making it a valuable tool for portfolio diversification and enhancing portfolio risk-adjusted returns. Based on our research, the ideal allocation could be around 5% to 10% of the portfolio, sophisticated investors could increase their allocation to more than 20% and skeptical investors should allocate at least 1% to diversify the overall portfolio.
Web3 and AGI Revolution
She highlighted Web3’s potential to accelerate AGI development, citing Render Network (leading protocol in decentralized GPU network) and Fetch.ai (permissionless AI agent marketplace) as cost-effective solutions.
Strategic Investment Opinion
Amanda emphasized the importance of strategic positioning for the latter stages of crypto bull cycles, where altcoins have historically outperformed BTC with 811%, while BTC price increased by only 334% from October 2020 to December 2021.