Overview: HMI12
- Target :
the investors who want to bet on the profitability of long-term cryptocurrency market cap increase just as the market cap ratio
- Portfolio :
investing about 80% in the top 2 cryptocurrencies, Bitcoin and Ethereum, and about 20% in the top 10 altcoins by market cap.
- Characteristic :
a balanced investment that maintains the stability of the entire portfolio while leveraging the dynamism of the market to explore additional upside opportunities!
- Benefit :
Start now and get a permanent waiver of management fees!
What is Beta?
Beta investing refers to investments that follow the overall market rather than specific assets, sometimes referred to as index or passive investing.
Beta is a term used to represent the returns earned by following the volatility (return/risk) of a market, rather than specific assets. It is associated with index or passive investing because it simply follows the market or an indexed representation of it. A good example is the S&P 500 index.
*On the other hand, active investing aims to outperform market returns through active management, and the profits obtained through this are referred to as active return or 'alpha'. This often involves investing in specific assets rather than the entire market, requiring extensive research and efforts, and thus typically has higher fees compared to passive investing. However, it typically shows stable returns with lower risk.
In the case of beta, while there may be high volatility, thus risk, this also means there could potentially be high returns, especially in scenarios where overall market growth is anticipated. Since it does not focus on a limited number of specific assets, it is advantageous in capturing opportunities broadly in a strong bull market.
Why Heybit's Beta Strategy!?
Signs of an Imminent Bull Market?
According to key figures and institutions in the industry, a series of recent phenomena are being viewed as positive signs that the cryptocurrency market is nearing the entry into a bull market.
According to Binance's end-of-2023 report,
Increase in Market Cap: The report indicates that the market capitalization of cryptocurrencies has increased by 110% compared to last year, reaching about $870 billion. Particularly in the fourth quarter, there was a rise of about 55%, amounting to $596 billion. This strong growth is a typical signal of a bull market, indicating increased investor confidence and capital inflow into the cryptocurrency market.
Recovery in the Supply of Stablecoins: For the first time since the first quarter of 2022, the supply of the top five stablecoins has turned positive. This reversal in the supply trend of stablecoins signifies market stability and the restoration of trust, considered as a signal of a sustained growth period in the broader cryptocurrency market.
Recovery in the NFT and DeFi Sectors: The NFT and DeFi sectors have also shown signs of recovery recently. The NFT market has made a remarkable rebound after months of decline, with trading volumes almost increasing by 200% in November. This recovery was led by the Bitcoin network, particularly through ordinals, with NFT transactions exceeding those on Ethereum.
Meanwhile, according to Cathie Wood, CEO of ARK Invest,
The Effect of Bitcoin Halving: Bitcoin halving occurs approximately every four years, reducing the mining rewards by half. This slows down the supply of new bitcoins, creating a supply reduction effect. Historically, Bitcoin prices have shown significant increases following halvings. For example, after the halvings in 2012 and 2016, Bitcoin prices surged within a few months. This pattern can create expectations that the market price will rise when limited supply exceeds demand.
Impact of Spot ETF Approval: The approval of spot-based Bitcoin ETFs increases accessibility to cryptocurrencies for a broader base of investors. ETFs are traded in the conventional stock market, making them more familiar to traditional investors, thereby lowering the investment barriers into cryptocurrencies like Bitcoin. The approval of spot ETFs can facilitate the entry of more institutional and individual investors into the Bitcoin market, potentially driving up demand and price.
The volatility and regulatory uncertainty of the cryptocurrency market can act as significant obstacles affecting market stability and investor confidence, thus requiring continued caution and observation. However, recent developments like the ones mentioned above are attracting retail and institutional investors back to the cryptocurrency market, increasing expectations of a bull market. This creates a favorable backdrop for beta investments, which invest across the market.
Advantages of Beta Strategy
Advantage #1> Expectation for High Long-term Return
You can expect a return rate higher than that of Bitcoin.
Assuming that the overall cryptocurrency market will rise in the long term
Backtest results (2021 ~ 2023)
| RETURN | MDD | CAGR |
HMI12 | 69.77% | -77.29% | 19.29% |
HMAI12 | 121.09% | -78.44% | 30.27% |
HAI10 | 120.81% | -83.05% | 30.22% |
BTC | 45.67% | -76.67% | 13.36% |
MDD (Maximum Drawdown): MDD is an indicator that shows how much the value of an investment portfolio or a specific asset has dropped from its peak to its lowest point. It is used to measure the riskiness of an investment, and a higher number indicates greater risk.
CAGR (Compound Annual Growth Rate): CAGR is a metric that indicates how much the value of an investment has grown on average each year over a certain period.
Advantage #2> Convenient Portfolio Management
The portfolio rebalancing is done automatically once a day, and you can respond to market changes without continuous market monitoring.
Join now and we'll permanently waive the management fee!
Comparison by Product
| HMI 12 | HMAI 12 | HAI 10 |
Name | Heybit Market Index 12 | Heybit Market + Alt Index 12 | Heybit Alt Index 10 |
For who? | [Stable Cryptocurrency Investor] | [High Return/Risk Seeking Cryptocurrency Investor] | [Ultra High Return/Risk Seeking Cryptocurrency Investor] |
Universe | According to Binance futures listing criteria, the top 12 coins by market cap. | According to Binance futures listing criteria, the top 12 coins by market cap. | In the case of the top 12 coins by market cap based on Binance futures listing criteria, the allocation changes if Ethereum ranks third in market cap, focusing on the 10 coins excluding Bitcoin and Ethereum. |
Asset Allocation | Market Cap-Based Allocation | 50% of the portfolio is allocated to Bitcoin and Ethereum based on their market caps, and the remaining 50% is allocated to the other 10 coins based on their market caps. | Allocation is based on market cap, excluding Bitcoin and Ethereum. |
Volatility (Return & Risk) | High | Very high | Very very high |
Details of Product Use
Target Exchange: Binance Futures Market
Rebalancing period: Daily
Recommended Investment Amount: More than 4,000 USDT
Minimum Investment Amount: 1,000 USDT
When operated with smaller amounts, appropriate proportions may not be achieved due to minimum trade units.
Contract Duration: 180 days
Management Fee: 1% of the deposit amount upfront (Permanent waiver for users joining during the event period)
Performance Fee: 10% of the profits, charged at the end of a 6-month contract
Imposed at the end of the contract period or upon early termination.
Early Termination Fee: 0%
Closing Remarks
☝️
With the current Bitcoin halving and the approval of Bitcoin spot ETFs
underway, many experts interpret these events as significant signals leading to a real bull market in the cryptocurrency sector.
Indeed, no one can guarantee whether a bull market will arrive or how long it will last. However, if these interpretations are correct, it could be an excellent opportunity to bet on the overall growth of the cryptocurrency market. In such a promising time, why not start investing more easily and efficiently with Heybit’s Beta strategy?
Start investing now and enjoy the benefits of a permanent waiver on management fees!