Cash / SRS / Crypto Portfolio
Performance Indicators / Dividends (TradFi Portfolio only)
- YTD Time weighted return: 3.87%
- XIRR since portfolio inception in 2013: 17.01%
- Dividends collected YTD: SGD 1,966.11
Note: I don’t provide details or returns metrics on my crypto portfolio publicly.
Soooo… that happened
April was craaaaaaazy man. Volatility is back in the house with various events sending price volatility shocks into the crypto markets before DeFi blue chips starting to move again towards the end of April.
Consequently, my overall portfolio value increased by over $1m to $3,199,086. This represents the single biggest month to month gain I’ve had in my investing journey. Sheeesh.
And no, its not due to DOGE. Certain core holdings I have started moving again in April driving most of the gains.
There were several events that occurred in April that were noteworthy.
The Coinbase IPO was a colossal event that was viewed by many as “crypto’s coming out party”. The first pure play crypto company to be listed with a massive valuation brought tradfi attention to crypto front and centre. While I fundamentally disagree with the ridiculous valuation assigned to Coinbase, I felt it was bullish for DeFi protocols as they can perform similar functions while being valued at a discount to Coinbase.
I found it interesting that crypto pumped into the IPO before setting all time highs in the initial days post IPO, supporting the narrative that Coinbase employees would be looking to cash out stock and buy crypto.
The unfortunate thing was that people were excessively leveraged long going into the Coinbase IPO, which precipitated a huge 20% selloff after setting new ATHs.
Biden’s capital gains tax proposal
If you’re in crypto for a while now, you would realise that there will be random FUD that will emerge regularly that will spook the markets. This month’s version is Biden’s capital gains tax proposal on the wealthy. The crazy fear was the crypto wealthy will sell their crypto before the taxes come into effect. This resulted in another dump on crypto markets.
Of course if you study this event more closely, you’ll realise that it has limited to no fundamental effect to crypto. So the selloff presents another buying opportunity.
Fallout and Consequences
There were some noteworthy price-action during all this volatility.
Decoupling of ETH and BTC
Crypto majors like BTC and ETH has generally traded in a highly correlated fashion, so it’s fascinating to see the start of decoupling of ETH and BTC price action. ETH / BTC has surged from 0.03 to 0.05 in April. Personally as a ETH bull, it makes sense just based on the much greater utility provided by ETH than BTC. With many fundamental catalysts on the horizon, I expect this decoupling to continue.
“ETH Killers” and shitcoins stronk
The concerning thing that emerged over the course of the month was the shitcoin pump on dumb stuff like DOGE and XRP. Some ETH Killers did well too. While I dont have any issues with people making money off of these coins and I do deploy a small amount of capital into ETH Killers, do note the security tradeoffs and additional risks you are taking for using these ETH Killers.
As for shitcoins, garbage will always be garbage. Just be aware that you’ll be playing the Greater Fools’ game if you trade those coins.
Current views on the market
Overall, I’m still macro bullish on crypto but with concerns about signs of froth appearing in the markets. Shitcoins pumping and ridiculous amounts of funds raised by new projects with paper-thin documentation is particularly concerning.
As a result, I’ve positioned myself more defensively by selling non-core positions back into my core positions. There is definitely still money to be made if you work hard on your research, but more likely than not you have to go further out the risk curve if you are looking for > 10X returns.
That being said, I still think that crypto has the best effort-to-reward ratio of all investments. It is still a very nascent space with “big brains” from Wall Street being stopped out / too biased to join the space. As a result, the crypto space is dominated by get-rich-quick dumb money for now. As such, just by being willing to do the in-depth research, you are already better than 90% of the investors in the space.
That is changing though, so make hay while the sun still shines.
As usual, this is not a call to buy or sell securities and its just sharing my own thought process for your information. Also, crypto is dangerous AF. Please do your own due diligence prior to investing.
Endowus CPF OA Portfolio
As you may know, I’ve started investing my CPF OA funds with Endowus. I’ve been sharing my portfolio performance for readers’ reference to evaluate product performance for themselves. Nothing much special this month, just the recurring monthly top up.
If you want to learn more about Endowus, do check out my review (Cash/SRS/Fund Smart portfolio details to be updated). Also, if you’re interested in opening an account, do feel free to sign up through my referral link. We will both receive $20 off access fees per referral.
As usual, to the 3 and 2 people who liked my Facebook page and subscribed to my blog respectively since my last portfolio update, welcome. Feel free to reach out via email or Facebook. I’m usually quite responsive as readers can attest to. Hope that you have found my blog content useful 🙂
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