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DR4
ODR4 · Strategy

Digital Reserve 4

T1Under studyCycle-tested
Reference net asset value
6,850.00usd

Calibrated launch value from the rulebook. This basket carries no order panel today.

Family
Strategy
Risk profile
Conservative
Holdings
5
Weighting
Market cap, 40% cap
Rebalance
Drift banded at 25%
Sharpe grade
Track too short
The thesis

Why this basket exists

What the construction is trying to capture, who it is built for, and how it is meant to be sized inside a wider allocation.

Digital Reserve 4 is the closest thing crypto has to a central-bank-reserve basket. Four assets (BTC, ETH, SOL, BNB), concentrated by liquidity. It is the index a CFO would size when their board accepts crypto exposure but only at the very largest, most-tradable names.

  • Highest liquidity floor in the catalogue
  • Conservative risk tier · primary collateral on /borrow and /leverage

Written by the OLTA investment committee for this basket.

How it is meant to be used
Built forTreasuries, balance-sheet allocations, foundations. Mandates that pre-restrict to Tier 1 names by policy.
Typical sizingUp to 100% of a crypto reserve sleeve
Weighting ruleMarket cap, 40% cap
Risk tierConservative
Composition

5 holdings, drawn to scale

Each tile's area is its weight in the basket, so the picture and the table below it are the same data read two ways.

Weight by area
5 holdings
BTC · 32% of the basketBTC32%ETH · 24% of the basketETH24%USDS · 20% of the basketUSDS20%SOL · 14% of the basketSOL14%BNB · 10% of the basketBNB10%
Largest holding
BTC 32.0%
The single name that moves net asset value most.
Top three
76.0%
Share of the basket held by its three largest names.
Effective holdings
4.36
Equal weight equivalent of 5 named positions.
Published weights
largest first
Published weights for all 5 holdings, largest first.
HoldingShareWeight
01BTC32%
02ETH24%
03USDS20%
04SOL14%
05BNB10%
Total100%
Holdings

Why each name earned its seat

Research notes per constituent: the case for the asset, the regime that suits it, and the risk the seat carries.

  • BTC32%Core anchor

    Bitcoin is the only crypto asset that clears the institutional bar on every dimension: deepest order books, longest track record, lowest custody friction.

    Strongest in flight-to-quality and pro-risk macro phases when liquidity is abundant. Underperforms in altcoin rotations and AI-narrative cycles.

    concentration risk
  • ETH24%Core anchor

    Ethereum is the only smart-contract platform with the TVL, developer mindshare, and settlement depth to count as core infrastructure.

    Outperforms BTC in DeFi cycles and L2 adoption waves. Lags when narratives shift to alt-L1s or when L2 fragmentation eats into mainnet fee capture.

    fee-revenue regime risk
  • USDS20%Growth

    Research note pending for this holding. Its weight and its role in the mandate are published above.

  • SOL14%Growth

    Solana is the highest-throughput smart-contract platform in production and the credible challenger to Ethereum at the application layer.

    Highest beta of the L1 majors. Outperforms in retail-led risk-on phases. Drawdowns sharper than BTC in flight-to-quality regimes.

    historical outagesvalidator concentration
  • BNB10%Core anchor

    BNB captures the cash flow of the largest centralized crypto exchange. Quarterly burn-and-buy gives it the cleanest token-to-revenue link of any major.

    Tracks Binance volume more than crypto beta. Faces regulatory tail risk when Binance is under enforcement scrutiny.

    regulatory tail riskexchange concentration
The record

What the numbers say

Simulated on historical constituent prices. A Sharpe is only published once the measured window clears 90 days, and drawdowns keep their sign.

Backtested record
47 day window
Sharpe grade
Track too short
A grade is published once the window reaches 90 days. This one covers 47.
Total return
+3.0%
Across the full window, simulated.
Max drawdown
−7.8%
Deepest peak to trough. 12 days to recover.
Annualised volatility
22.9%
Standard deviation of daily returns, annualised.
Beta vs bitcoin
0.84
Correlation 0.97.
Effective holdings
4.36
Of 5 named. Equal weight equivalent, from the published weights.
Simulated rebalance
Quarterly
Backtest assumption, not a published cadence.
Jensen alpha
−18.0%
Excess over what beta to bitcoin alone explains.
R squared
0.93
Share of the basket's moves bitcoin explains.
Bitcoin reference · Sharpe 0.33 · max drawdown −76.6%
OCBE100 reference · Sharpe 0.34 · max drawdown −61.1%

Every figure above is simulated on historical constituent prices for a basket that has not traded. It describes how the rules would have behaved, not how they will behave. ODR4 is part of a public preview.

Loss tail
95% VaR · loss tailhistorical
1-week · 7d−5%
1-month · 30d0%

Max expected loss over the horizon · 95% confidence · historical distribution. There is a 5% chance the actual loss is larger.

Across timeframes
vs bitcoin
Simulated return for this basket over five windows, with a Sharpe and a comparison with bitcoin wherever the window is long enough to publish one.
WindowReturnSharpevs BTC
Full window+3.0%Not graded·
1 year+3.0%Not graded·
6 months+3.0%Not graded·
3 months+3.0%Not graded·
1 month−1.8%Not graded·

Returns are simulated over each window. A Sharpe is published only once that window clears 90 days, so the shorter rows read Not graded and carry no comparison with bitcoin. Short windows flatter and punish at random; read the full window first and treat the rest as texture.

Risk

What could go wrong

Priced off this basket's own weights rather than off a generic disclaimer, so every figure below can be checked against the table above.

Less diversified than OCI10 or OCI20. Drawdowns track BTC almost 1 to 1.

Structural flags
1 on this basket
  • Single-name concentrationMedium

    BTC carries 32% of the basket. A drawdown in this single name materially moves NAV.

If it goes wrong
effect on net asset value
3 downside scenarios for this basket, and the loss each one would put on net asset value.
ScenarioLoss on net asset value
BTC loses half its valueLargest holding, 32.0% of the basket−16.0%Mechanical
The three largest holdings fall 30%BTC, ETH, USDS · 76.0% of the basket together−22.8%Mechanical
The deepest simulated fall repeatsRecorded once in the window, 12 days to recover−7.8%Recorded

The mechanical rows hold every other holding still, which is the optimistic case. This basket measured 0.97 correlation to bitcoin over its window, so its holdings tend to fall together rather than one at a time. Read the figures as a floor on the damage, never a ceiling.

Further reading

The research behind the construction

Worth a second look later

ODR4 is under methodology review, so it carries no buy action today. The weights and the cadence are still being settled, and publishing an order panel over rules that are about to change would be the wrong kind of confidence. Everything above stays on the page while the work runs: the composition, the measured record and the risk flags all move with the research.