Fumbi Products Performance for 2023

The cryptocurrency market in 2023 was significantly different compared to 2022. After the sharp drop in asset prices in 2022 caused mainly by the crash of the cryptocurrency LUNA and the bankruptcy of the crypto exchange FTX, since the beginning of 2023, investors in the market have shown a great interest in Bitcoin and other alternative cryptocurrencies, which has been reflected in their significant price growth. This growth in the first half of the year was fueled by the banking crisis in the United States and Europe, during which Bitcoin became a safe haven for many investors.

However, the main catalyst for the price rise was the euphoria surrounding the possible approval of a spot bitcoin ETF in the US. Giants such as BlackRock, Fidelity and Ark Investments have shown interest and submitted applications to launch a spot ETF, which several companies have applied for in the past, but their applications have always been rejected. The interest from institutions, including the world’s largest asset manager BlackRock, has injected a new wave of optimism into the market. There is simply no denying that the adoption of cryptocurrencies continues to grow and that traditional institutions and banks are also interested.

At Fumbi, we’ve worked hard all year to bring you only the best of the cryptocurrency market. For this reason, we have optimized, improved and developed new products to ensure our clients the highest possible return with the lowest possible risk. Join us for a summary of our products’ performance.

Fumbi Index Portfolio

Our clients’ most popular product continues to be the Fumbi Index Portfolio managed by the Fumbi Algorithm, which offers a simple and effective way to invest in a suite of top proven cryptocurrencies in just a few clicks.

During 2023, we made a total of four updates to the Fumbi Index Portfolio to optimize our portfolio to comply with our investment philosophy and all formal criteria to which the Fumbi Index Portfolio is subject. Over the course of the four updates, we removed up to 5 cryptocurrencies from the portfolio that continued to fail to meet our formal criteria. At the same time, we added 6 new assets with high growth and technology potential to the portfolio. An overview of each update can be found on our blog in the “Fumbi News”.

Since cryptocurrencies are traded around the clock, as opposed to other assets such as stocks or commodities, the structure of the Index Portfolio’s daily returns was really interesting. The highest daily return achieved was recorded on March 15, 2023, when the value of the Fumbi Index Portfolio rose by as much as 8.63% in one day. The highest daily loss was recorded on August 17, 2023, when Bitcoin plummeted significantly over the course of one day, and the Fumbi Index Portfolio lost as much as 10.19% on that day.

In 2023, the Fumbi Index Portfolio achieved a total appreciation of 122.75% by 31.12.2023. The maximum possible appreciation of the portfolio in 2023 was recorded on December 8, 2023, when the year-to-date appreciation of the portfolio reached as high as 134.24%.

If anyone had decided to invest in the Fumbi Index Portfolio at the start of the calendar year 2023, they would not regret their decision. An investment of €1,000 made at the beginning of the year would have earned our investors a net return of €1,227.53 with an investment value of €2,227.53 by 31.12.2023. However, this model abstracts from any fees.

If an investor decided to invest their funds at the beginning of the calendar year and withdrew their funds at the local December peak on 8 December, they would achieve a net return of €1,342.41 with a cumulative investment value of €2,342.41 on the date of withdrawal.

The profitable days indicator shows the number of days in 2023 on which a €1,000 (model situation) investment in the Fumbi Index Portfolio was profitable compared to the closing price on 31.12.2023. The Fumbi Index Portfolio had a total of 338 profitable days – this means that if you invested in the Fumbi Index Portfolio on any of these days, the return on your investment was on the last calendar day positive. Conversely, a red line indicates that if you invested in the Fumbi Index Portfolio on any of those days, your investment was in the red at the end of calendar year 2023 (27 days in total).

Compared to more traditional investment vehicles, our dynamic portfolio has managed to outperform both the best-known equity indices and gold itself. The Fumbi Index Portfolio was able to outperform the S&P 500 Index many times over in 2023, which itself rose by a remarkable 24%. However, it should be noted here that the cryptocurrency market, like our Fumbi Index Portfolio, is significantly riskier than the S&P 500 or traditional gold. The reward for a higher risk tends to be a higher return.

Fumbi Custom

Through the Fumbi Custom product, our clients can invest in individual cryptocurrencies of their choice. These cryptocurrencies are then safely stored on our custody solutions.

Currently, a total of five of the most well-known and popular cryptocurrencies on the market  are available in this product – Bitcoin, Ethereum, Polkadot, Avalanche and Cardano.

Among the assets available in the Fumbi Custom, Avalanche (AVAX) cryptocurrency was the winner in terms of performance in 2023, rising by 250.58% by 31 December 2023.Earlier this year, you could still buy Avalanche (AVAX) in the Fumbi Custom for around €10, while by the end of 2023, one AVAX was trading for more than €35.

Bitcoin also did particularly well in 2023, as the strongest and most stable cryptocurrency on the market, rising by as much as 147.18% in the BTC/EUR pair over the course of one year. The year 2023 was largely marked by the euphoria surrounding Bitcoin and the approval of the Bitcoin spot ETF, which was reflected in the strengthening of Bitcoin’s dominance. Bitcoin’s dominance increased from 41.3% to 54.1% during 2023. Market peer Ethereum grew significantly less than Bitcoin over the past year, appreciating by 85%.

The chart above shows the maximum daily rise and fall of each asset that is on offer within the Fumbi Custom product. We can see that in terms of price fluctuations, Bitcoin is the safest choice among the selected assets. Avalanche (AVAX) has seen the highest fluctuations both up and down over the past year, but has generated the highest returns for investors.

Bitcoin and Gold

Bitcoin and Gold is a unique product that offers the opportunity to invest in cryptocurrencies in a significantly more conservative way. This product combines the technological and growth potential of Bitcoin with the stability of real and time-tested gold. The gold in this case is represented by the cryptocurrency PAX Gold, which is backed by physical gold stocks stored by Paxos. Anyone who owns a PAX Gold token has it backed by physical gold.

In 2023, an index consisting of Bitcoin and Gold has reached a total appreciation of 67.85% as of December 31, 2023. The index reached its maximum possible appreciation in calendar year 2023 on December 6 at 74.82%.

The Bitcoin & Gold product is one of the most conservative products that Fumbi offers. Taking lower risk is naturally related to accepting and expecting lower returns. Despite the more conservative approach, this product has been able to generate above-average returns, outperforming the S&P 500, the Dow Jones Real Estate Index and gold itself.

Staking Portfolio

Through the Staking Portfolio product, our clients invest in a portfolio made up of ten cryptocurrencies that operate on the Proof-of-Stake consensus algorithm and can be staked. As a result, our clients collect weekly rewards from staking, with a return on staking of around 5-7% per annum in cryptocurrencies. This means that investors in this product directly increase the amount of cryptocurrency they own each week. The Staking Portfolio achieved a performance of 74.28% in 2023.

Advanced Portfolios

With the arrival of 2023, we at Fumbi have launched a new product called Advanced Portfolios, which gives our clients the ability to create diversified crypto portfolios according to their own preferences and needs. There are currently over 60 cryptoassets available to choose from, and we are regularly adding new and innovative assets to this product.

Of the available assets in the Advanced Portfolios product, the best-performing asset for 2023 was the cryptocurrency Injective (INJ), which has grown by a whopping 2635% YTD 2023. The cryptocurrencies Render (RNDR) and Solana (SOL) have also seen significant growth, growing by 977% and 890% respectively. An overview of the top 10 best-performing cryptocurrencies in the Advanced Portfolios product can be found in the chart below:

Invest with Fumbi today

Capitalise on the potential of cryptocurrencies simply, safely and efficiently. Start investing with Fumbi with amounts starting from €50. The Fumbi Algorithm in the Fumbi Index Portfolio tracks the price movements in the cryptocurrency market for you. And if you want to get a weekly reward from investing, choose the Staking Portfolio with an expected annual reward of 5-7% and no entry or annual fees.

Note: Products as well as individual cryptoassets are tracked in currency pairs with EUR.