Crypto market maker GSR's Crypto Core3 model portfolio has recorded a one-year return of -57.8% as of August 5, reflecting the steep declines in its holdings: Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The portfolio was allocated 44.1% to ETH, 36.5% to SOL, and 19.3% to BTC, a strategic shift that increased Bitcoin's weight by 10.1 percentage points from just 9.2% on July 15, while reducing Ether's exposure by nine percentage points.
The sharp downturn aligns with a broader crypto market slump. Year-to-date, Bitcoin has fallen 24.82%, Ethereum 35.49%, and Solana 40.21%. Over one year, BTC lost 47.08%, ETH 44.73%, and SOL 54.89%. Solana's decline was the steepest among the three, though it also recorded the best weekly gain of 1.86% in the latest period, while Ether led 30-day returns at 5.16%.
GSR explained that the allocation adjustments were driven by a quieter market with slowing trading volumes and reduced volatility, prompting a defensive positioning toward Bitcoin's relative stability. The firm's proprietary signals, not just price performance, guided the move. The model portfolio, which excludes fees and staking rewards, underperformed a simple equally weighted basket of the three assets by 7.94 percentage points over one year, showing the impact of higher altcoin exposure.
The performance serves as a cautionary note for investors, highlighting the pronounced volatility of ether and solana compared to bitcoin. GSR's shift may indicate a broader institutional preference for capital preservation in uncertain times.
