GSR, a crypto market maker, cut Bitcoin’s (BTC) weighting in its Core3 model portfolio to 16.9%, the lowest of the three assets it tracks. The firm raised Solana’s (SOL) weighting to 43.6%, making it the model’s largest position.
Core3 is GSR’s weekly rebalanced signal portfolio. It shows where the firm’s trading desk sees relative strength across Bitcoin, Ether (ETH) and Solana. The model does not hold client funds. Instead, it turns GSR’s short-term market view into a weighting readers can track.
Solana Overtakes Ether as the Top Weighting
Ether’s weighting fell to 39.5%, and Solana took the largest position, a spot Ether held in GSR’s prior rebalance on Aug. 5. The shift tracks short-term price action rather than longer-term returns. Solana gained 2.98% over the past week. Bitcoin fell 1.02% and Ether slipped 0.20% over the same stretch, based on the performance data behind the rebalance.
Solana remains the weakest performer of the three over a longer horizon. It is down roughly 36.69% year to date and 60.80% over the past year. That gap between short-term momentum and long-term losses reflects Core3’s design.
The model favors recent relative strength over trailing performance. That approach lets it raise exposure to the asset down the most for the year.
Bitcoin trades near $63,513, based on current pricing. Its 30-day volatility reading of 26.82% is the lowest of the three assets, a factor that usually favors a heavier Bitcoin weighting under a risk-adjusted model. GSR moved the opposite direction this week. The firm favored the asset with fresher upside momentum over the one with the calmer chart.
Solana trades near $76 on the Solana Markets page. Its 60-day volatility of 48.84% is the highest of the group, nearly nineteen points above Bitcoin’s 29.49%. That combination, the largest allocation paired with the highest volatility reading, makes Solana the swing factor in Core3’s near-term returns.
A Model That Trails Its Own Benchmark
The reweighting comes as Core3 trails a simple equal-weight approach to the same three assets. Core3 lost 70.28% over the past year, compared with a 63.44% loss for the equal-weight basket.
It is down 35.58% year to date versus 32.22% for the benchmark. GSR’s active tilts have added risk without adding return over that stretch. Whether the new Solana-heavy weighting closes that gap or widens it depends on whether this week’s momentum in SOL carries into the next rebalance.
Source: BeInCrypto
