Make-It Capital Edition #7
December 2020 | Make-it Capital Fund
THE WORLD AS WE SAW IT IN DECEMBER 2020
The world of cryptocurrencies
The month of December 2020 saw phenomenal gains for Bitcoin and the general cryptocurrency market. The market capitalization of the entire cryptocurrency market (M/C) gained 31,58% or roughly US$ 180 billion. Bitcoin dominance (BTC Dom.) grew a massive 14% to about 70% of the total market. The leading stablecoin Tether (USDT) tagged on another 10%.
Despite the incredible runup of Bitcoin this year, it has even been outperformed by Ethereum by about 50%. Obviously, Ethereum was riding the decentralized finance (DeFi) wave, added by the anticipation of ETH 2.0 which will increase speed and reduce cost.
Even after this great advance, we believe we are still only in the early innings. As Dan Schulman, President and CEO of PayPal put it, “The shift to digital forms of currency is inevitable.” Or as Rick Rieder, CIO of BlackRock Inc. opined, Bitcoin could replace gold. Why is that important? Well, BlackRock is the largest asset manager on the planet with $7.4 trillion under management. Were they to invest just 1% of that into cryptocurrencies, it would equal $74 billion!
We could go on and on, however, we aim to keep this short and concise. You get the picture. We are in for the long-term
The world of commodities
We have decided to include commodities in our concise tour of the world as their development provides valuable insights into world markets. It is always interesting to examine Gold and Silver especially in comparison to Bitcoin. And here, we observe a clear outperformance of Bitcoin which is interesting and could indicate the ushering into a new era (see Rick Rieder’s commentary above).
Especially, Dr. Copper presents us with an indication of where the world’s economy is heading. And copper prices have been steadily moving higher signaling a healthy economy despite all COVID scares.
Oil prices serve as a canary in the coalmine, signaling a potential tipping point of this 10-year stock bull market. Once WTI and Brent rise significantly, caution in stock markets is recommended.
All major stock markets were in positive territory during December with tech investments again outperforming the rest. In fact, the NASDAQ outperformed the S&P500 by a whopping 27.38% in 2020. We anticipate this trend to continue for the time being.
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. The fund always trades at exactly NAV which is in stark contrast to many other offerings.
The main objective of the fund is capital preservation by reducing risk and volatility.
This is achieved by employing our proprietary 5-pillar strategy. Furthermore by utilizing trading strategies. For instance, during the recent runup we have repeatedly taken profits and in consequence hold a cash ratio of 30% to be employed during an inevitable market retraction. Buy low, sell high.
That we produced a 2.38x for our early investors in some 10 months is a nice icing on the cake.
We have added one pillar and reduced another in our core strategy. As such we have introduced DeFi / Yield Farming to the fund while Masternodes were removed. Masternodes have lost in importance in the blockchain ecosystem while DeFi rose to prominence. And we deemed it important to participate in this new market trend. We are keeping a close eye on NFTs (Non-Fungible Tokens) also.
Thank you for your time and attention.
Should you want to delve deeper into the world of blockchain, here is a link to the 2020 Deloitte Global Blockchain Survey: https://www2.deloitte.com/content/dam/insights/us/articles/6608_2020-global-blockchain-survey/DI_CIR%202020%20global%20blockchain%20survey.pdf
For more details on the Make-It Capital Fund, please contact: