If you’re wondering whether crypto index ETFs would be a good idea (during a bear market), take a look at this simulation. The results are not what you expect.
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At the beginning of January I've decided to conduct an experiment. I simulated purchase of coins from the range: 1) Top 100 2) Top 101-200 3) Top 900-1000 Except of stables, I put 100 USD into every coin from a given range. I wanted to simulate how index ETFs would perform. The results are…..interesting. One word about methodology – I simulated only purchase of coins that were listed on at least 1 exchange to avoid liquidity issues. TOP 100 As you can see my TOP 100 ETF is -71% at the moment of this post. But heeeeey – I have best performer with profit. Wait for it…. I have only 1 coin with profit. Let's check the worst performers from my TOP 100: No surprise, Luna – 100%, but other projects that were shining are f*****d as well. TOP 101-200This portfolio is – 76% without any coin in profit since JAN. Amongst worst performers are coins that were mentioned as those with potential (e.g. Raydium). Probably this one is result of Solana outages (joke). Now, most interesting part. TOP 901 – 1000Heeey – this portfolio is – 66%. So it outperformed previous ones (who said sth about blue chips?) I have even coin that is + 51%. Now it is in top 500! TLDR – Index created from the coins on the bottom (for now) outperforms indexes based on top 200 coins. Will update at the end of the year. submitted by /u/Plane-Tour-5699 |
