Crypto20 (C20), the tokenized fund of Invictus Capital to calmly gain exposure to cryptocurrencies


This article is written in partnership with Invictus (find out more)

Invictus Capital, from 2017 to today

In 2017, investing in the cryptocurrency market was not as easy as it can be today. New projects were born every day and raised several million dollars; it was the fashion of Initial Coin Offering (ICO).

It was then difficult to differentiate fraudulent projects from real nuggets. Moreover, most of the cryptocurrencies having achieved the largest fundraising in 2017 no longer part of the current landscape Of the industry.

Faced with this observation, Invictus Capital had the ambition to “Make more affordable” investment in the financial markets, particularly that of digital assets. This is how was born Crypto20 (C20), the first index fund in history based on cryptocurrencies. By offering exposure to twenty of the most capitalized assets in the market, and with an adjustable allocation, investors no longer have to worry about managing their assets on a daily basis.

Since 2017, Invictus has launched many other funds, including Margin Lending on the dollar (IML), Bitcoin Alpha (IBA), Hyperion VC for blockchain startups (IHF) or Crypto10 (C10), an evolved version of its predecessor. Of course, the Crypto20 is still available and has not lost its interest. On the occasion of the anniversary of his four years, overview of this index fund and how it works.

👉 To learn more, find our presentation of the Invictus Capital (ICAP) platform

Crypto20 (C20), a token to invest globally in cryptocurrencies?

The cryptocurrency market evolves at a lightning speed. From Dash (DASH) and Monero (XMR) to Solana (SOL) and Terra (LUNA) today, the ranking of the most capitalized cryptocurrencies on the market not the same than 4 years ago. And the components of the C20 too. Thanks to it, investors benefit from evolving exposure to this flourishing asset class.

The C20 fund follows a passive strategy, more suited to “Medium and long term investors”. Each week, the twenty assets making up the portfolio are reallocated according to the evolution of their capitalizations. If a new asset enters the top 20 most capitalized cryptocurrencies (excluding stablecoin), it replaces the one that left in C20’s portfolio.

Breakdown of the C20 portfolio as of November 30, 2021 – Source: Crypto20 Information Sheet

Each cryptocurrency and their market capitalizations evolve at their own pace and can upset the allocation initially defined. If one of them exceeds a certain limit – 10% maximum of the total portfolio – the difference is redistributed equitably between other assets.

Over a rolling one-year period, from November 2020 to November 2021, the C20 product offered an annual income of 453%. A good performance, which greatly surpasses the statistics of a portfolio made up of equal parts of the top 20 cryptocurrencies, indicating a yield of 412%.

However, C20 showed much less resilient in the face of market volatility than Bitcoin (BTC) itself, as shown in the following graph:

evolution graph

Comparison of the performance of Bitcoin, C20 and the average of the top 20 – Source: Crypto20 Information Sheet

During the year 2020, Invictus Capital contributed significant improvements in the management of the C20 fund. Thanks to the use of fixed-term contracts, combined with the exploitation of blockchain technologies, Invictus Capital is able to offer investors the same underlying exposure at a lower overall cost, with reduced volatility and superior performance.

Indeed, the assets of the Crypto20 fund are now used to have recourse lending and staking options or other similar methods to generate returns additional. This would make it possible in particular to cover a good part of the transaction costs, even in a downward period or in lateralization.

👉 To go further, find our presentation of another Invictus fund, Crypto10

In conclusion

It is undeniable, the cryptocurrency market has offered and continues to deliver exceptional returns. That said, if you don’t want to be demoralized by volatility, it’s best to adopt a long-term vision. Who hasn’t bought an asset at a local summit, or sold on the cusp of an exponential rise? This is part of the risk of being an investor in cryptocurrencies.

In this context, the C20 offers investors the tranquility of a wallet managed directly by a team of industry experts. It allows “Diversification, minimal costs, transparency and the advantage of generating additional returns on the underlying assets, all managed by the experienced fund management team”.

Like its evolved version, the Crypto10, the C20 is a really interesting option to gain exposure to the market without personally worrying about volatility. To learn more, do not hesitate to read the whitepaper of the first index fund in the history of cryptocurrencies and connect to the various Invictus social networks.

👉 Join the French community of Invictus Capital on Telegram

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This is a sponsored and paid article. Cryptoast has made preliminary research on the products or services presented on this page but could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service put forward in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capacity. This article does not constitute investment advice.

About the Author : Lilian aliaga

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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies with as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.


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