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Make-It Capital Edition #6

September 2020 | Make-it Capital Fund

THE WORLD AS WE SAW IT IN SEPTEMBER 2020

The world of cryptocurrencies

The month of September 2020 saw heavy losses across all asset classes with cryptocurrencies not being spared. The market capitalization of the entire cryptocurrency market (M/C) fell by 8.5% or roughly US$ 32 billion. At the same time trading volume (24h Vol) receded also by about 15.5%. This is quite good news. A decreasing market with increasing volume would give us cause for concern.

Bitcoin (BTC) lost about 7.6% with its smaller cousin Ethereum (ETH) shedding 10% more. It is not a big surprise that Ethereum shows more volatility than bitcoin. All par for the course.

Tether (USDT) keeps on growing relentlessly, adding another US$ 2.2 billion in market capitalization with a daily trading volume of up to US$ 50 billion representing an absolute record high.

So, what does this entail? In this context, it might be interesting to draw attention to the Stablecoin Supply Ratio (SSR). The SSR is the ratio between Bitcoin supply and the supply of stablecoins, denominated in BTC, i.e. total market capitalization of Bitcoin divided by the total market capitalization of all know and tracked stablecoins. When the SSR is low, the current stablecoin supply has more “buying power” to purchase BTC. It serves as a proxy for the supply/demand mechanics between BTC and USD[1]. Now, let’s have a look where we stand:

[1] https://academy.glassnode.com/indicators/stablecoin/ssr-stablecoin-supply-ratio

The SSR is at its lowest level ever. This demonstrates that investors got into Tether et al, however, did not apply it yet to acquire any other crypto assets. The discrepancy is growing by the day coiling the spring and getting ready for an explosive move. We are looking forward to that.

The rest

All major stock markets were in negative territory during September, with those markets that performed best before falling the most. Again, this seems to be a normal and rather healthy correction which was needed after a prolonged surge.
Silver had outperformed Gold to date and consequently experienced the biggest decline in the markets we cover here. The Gold-to-Silver ratio is back over 80.

Make-It Capital Fund

The Fund is operated by Make-It Singapore and managed by Make-It New Zealand. It is open to institutional and accredited investors. The Fund is a totally unique one-stop shop for a comprehensive blockchain / cryptocurrency portfolio, empowering investors to participate in the complete ecosphere of the blockchain universe with just one investment. To achieve this and reduce volatility at the same time, we apply our proprietary five-pillar approach.
During September, the Fund has acquired its first masternodes activating yet another of the five pillars. Details of which can only and shall only be shared with our investors.
Also, trading activities increased to cover and profit from increased volatility. As such, the outperformance to Bitcoin could be expanded. Overall, the Fund still dominantly outperforms all other major asset classes since its inception.

Although the fund could not utterly isolate itself from world markets and also lost some value, in relative terms however, much less than its benchmarks. Knowing one can always improve, we are still pleased with our performance to date and are positive for the immediate, mid-term and especially long-term future of the fund

For more details on the Make-It Capital Fund, please contact: 

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Best regards, PHIL VON GOTTBERG CFO 	philipp@make-it.capital

Best regards, PHIL VON GOTTBERG CFO philipp@make-it.capital

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