Fumbi Quarterly Portfolio Products Update – March 2023

Another three months have passed, and our team of Fumbi experts have once again conducted a regular quarterly update of our Fumbi Index portfolio. However, in addition to updating our flagship product, for the first time ever, we performed an update on our new product called Fumbi Advanced Portfolios.

The quarterly update is a vital process during which our experts actively review current trends and reassess the overall market situation to optimise our products’ return and risk profile. During this event, individual cryptoassets are analysed, and then assets that no longer meet our selection criteria are removed while new ones are added.

In mid-February, Fumbi’s investment committee met to discuss the current market situation and decide which assets would be removed and which, in turn, would be added to our products during the March update. After a long discussion and a review of all the factors influencing the current market conditions, the committee reached a consensus regarding the regular update.

Fumbi typically updates its portfolios quarterly to reflect the current market situation as accurately as possible. The March update of our products will bring several new assets and enhancements to help investors achieve their investment goals.

Fumbi Index Portfolio – Product Update

The basis for our regular quarterly update is an adjustment to our Fumbi Index Portfolio. During the March update, we added the following assets to the portfolio:

• Aptos (APT) – Aptos is a tier-one blockchain that uses a new programming language, Move, created by programmers at Meta. Aptos can theoretically process up to 150,000 transactions per second by executing transactions in parallel.
  

• The Graph (GRT) – The Graph (GRT) is an indexing protocol for decentralised applications that enables efficient access to blockchain data. Anyone can create public APIs called Subgraphs that provide easy access to data.
  

• Lido Dao (LDO) – A project aimed at providing so-called liquid bets for Ethereum as well as for other assets. Lido allows users to stack their coins with no minimum deposit and without having to block their assets for a certain period of time.

As part of the update to the Fumbi Index Portfolio, we are also removing cryptoassets that no longer meet our strict selection criteria. During the March update, we decided to remove two assets from the portfolio that no longer meet our criteria for being in the top 50 in market capitalisation. The removed assets are:

• Trust Wallet Token (TWT),

• Tezos (XTZ).

Fumbi Advanced Portfolios – Product Update

For the first time, we have also updated our new product called Fumbi Advanced Portfolios. With this product, our clients can build their own portfolios or choose one of our predefined templates focused on different ecosystems from the world of cryptocurrencies. To add to the wide range of cryptoassets that clients can choose from, we added three new assets during the March update:

• Frax Share (FXS) – The Frax protocol is the first stablecoin blockchain system with a fractional algorithm. The ultimate goal of the Frax protocol is to provide highly scalable, decentralised, and fractionally algorithmically managed stablecoins. Frax operates its own stablecoin called FRAX, which is partially collateralised and partially algorithm-managed.
  

• GMX (GMX) – GMX is a platform aimed at trading perpetual contracts in a decentralised manner. The idea is that users do not actually buy or sell any token on this platform. Instead, they open trading positions by inserting collateral and choosing the direction of their position – they can take a long or short strategy.
  

• Rocket Pool (RPL) – The Rocket Pool is an Ethereum 2.0 staking pool. The protocol’s main goal is to reduce hardware and capital requirements in Ethereum 2.0 staking, thus contributing to greater decentralisation and security in the network. Rocket Pool allows users to stake Ethereum starting from 16 ETH instead of the 32 ETH required to run a custom validation node.

Fumbi Advanced Portfolios – Product Templates Update

For clients who can’t decide what to invest in, our experts at Fumbi have created five diversified portfolios focused on different areas of the cryptocurrency ecosystem within the new product. The March update brought changes to three templates:

• DeFi Portfolio – As part of the “DeFi Portfolio” template update, we removed the Loopring (LRC) cryptoasset from the template and replaced it with the Lido Dao (LDO) token.
  

• NFT & Metaverse Portfolio – As part of the “NFT & Metaverse Portfolio” template update, we have removed the Theta Network (THETA) cryptoasset from the template and replaced it with the Immutable X (IMX) token.
  

• Adventurous Portfolio – As part of the “Adventurous Portfolio” template update, we have removed the Flow Blockchain (FLOW) crypto-asset from the template and replaced it with an Ethereum network Layer 2 scaling solution token called Optimism (OP).

What Are Our Criteria for Selecting Cryptocurrencies?

At Fumbi, we follow strict rules for selecting the cryptocurrencies that make it into our portfolio. In addition to formal criteria related to liquidity, market capitalisation or custodial capability, assets must have strong fundamentals within three categories that we identify as the key ones in the market: payment systems, decentralised finance and Web3.

You can read more about our portfolio selection in this article.