GSR shifted money into Bitcoin on August 5th while the broader crypto market went quiet. Trading volumes dropped, volatility eased across major assets, and the firm's Core3 model responded by lifting Bitcoin's weight from 9.2% to 19.3% in just three weeks.
The move came as Solana bled harder than its peers. Year to date, SOL had fallen 40.21%, the worst performer among the three tracked assets. Bitcoin sat down 24.82%, Ether at 35.49%. Over a full year, the damage spread wider: Solana lost 54.89%, Bitcoin 47.08%, Ether 44.73%. This wasn't one coin imploding. All three were underwater.
Yet the model's latest allocation told a different story about what came next. Ether held the biggest slice at 44.1%, Solana got 36.5%, and Bitcoin climbed to 19.3%. GSR cut Ether by nine percentage points from its July 15 position of 53.1% despite Ether posting the strongest recent returns. In the last month, Ether gained 5.16%. Bitcoin rose just 1.26%. Solana dropped 9.64%.
The firm attributed the shift to proprietary signals rather than chasing recent winners. Market conditions had turned subdued, GSR noted, with price moves staying modest and no clear directional trend. In that environment, the model saw relatively stronger forward-looking opportunities in Bitcoin over Ether. The Core3 portfolio itself had lost 57.78% year to date, trailing an equally weighted basket by 7.94 percentage points before costs.
This article covers quantitative model adjustments and historical performance data. It is informational only and not investment advice. Past returns do not predict future results.
