Finexia Crypto Collective Newsletter - December

Since our last performance update, the crypto space has been shaken to its foundations by the collapse of what once was one of the largest crypto exchanges, FTX. Over a period of 11 days in November, the company went from business as usual on 1 November, 2022 to filing bankruptcy on the 11th. After a CoinDesk report was released expressing leverage and solvency concerns, the exchange faced an overnight liquidity crisis that resulted in negotiations with Binance, the worlds largest crypto exchange, to acquire FTX.  This acquisition eventually fell through. All large cap cryptocurrencies are now dealing with the aftermath of FTX and whilst this is reflected in this months decline in the Collective, the basket still managed to maintain its outperformance of Bitcoin.

The contagion from FTX’s collapse has been felt throughout the wider economy, impacting not only crypto-related businesses but also traditional pension funds, hedge funds and investment banks globally. FTX’s collapse is currently unfolding. There is speculation that the collapse of the firm was the result of the mismanagement of client funds and negligence from the companies founder, Sam Bankman-Fried, aka SBF, and the numerous related party transactions between FTX and its sister firm Alameda Research.

Each month the Collective basket of coins is rebalanced back to its original pre-determined proprietary weightings, coinciding with the 3-day ‘Trade Window’. The ‘Trade Window’ commences today (01/12/2022) and closes at 5pm AEDT 05/11/2022. Now is the time to invest in the Finexia Crypto Collective. For more information visit  https://www.finexia.com.au/crypto_collective/

Why the Finexia Crypto Collective?

• Diversified exposure with 6 coins in one single investment, designed to outperform any single one coin trade.
• Transparent with Low Fees
• Professionally Managed
• Easy to buy and sell
• Security with an industry leading custodian

December 2022 Basket

Below are the weights that will define the basket for December 2022.