Low Volatility 8
Calibrated launch value from the rulebook. This basket carries no order panel today.
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.
Eight assets ranked by inverse volatility. Tilts toward names with historically contained drawdowns. Reduces but does not eliminate crypto beta; the goal is a smoother equity curve, not market-neutral. Useful for allocations with explicit drawdown caps.
- Strategy family · Conservative risk tier
- Rule-based, divisor-method NAV
No committee note is published for this basket yet, so the catalogue description above stands in until one is written.
8 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.
| Holding | Share | Weight | |
|---|---|---|---|
| 01BTC | 22% | ||
| 02ETH | 16% | ||
| 03BNB | 14% | ||
| 04LTC | 12% | ||
| 05TRX | 11% | ||
| 06GRAM | 10% | ||
| 07LINK | 8% | ||
| 08XRP | 7% | ||
| Total | 100% |
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.
- BTC22%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 - ETH16%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 - BNB14%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 - LTC12%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
- TRX11%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
Show the remaining 3 holdings
- GRAM10%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
- LINK8%Infrastructure
Chainlink is the dominant oracle network and the only institutional-grade middleware token in the catalogue. CCIP makes it the de facto oracle layer for tokenized assets.
Performs in oracle-narrative phases and RWA cycles. Underperforms in pure-crypto retail rotations where infrastructure is unfashionable.
middleware competition - XRP7%Core anchor
XRP is the payments-rail asset that retained its market position through the SEC litigation period and the 2024 settlement.
Outperforms when payments-narrative or banking-partnership news drives flow. Underperforms in DeFi or smart-contract-led cycles.
narrative dependencecentralized issuance
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.
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. OLV8 is part of a public preview.
Max expected loss over the horizon · 95% confidence · historical distribution. There is a 5% chance the actual loss is larger.
| Window | Return | Sharpe | vs BTC |
|---|---|---|---|
| Full window | +27.2% | 0.30 | −0.13 |
| 1 year | −36.0% | −0.92 | −0.12 |
| 6 months | +20.4% | 1.42 | −0.05 |
| 3 months | +5.4% | 0.70 | −0.39 |
| 1 month | +20.8% | 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.
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.
Drawdowns are bounded relative to the broader crypto market. Constituent caps and liquidity filters contain concentration risk. Full risk parameters live in the methodology rulebook.
- Top-name weightLow
BTC is the largest position at 22%. Capped by methodology but still drives index direction.
- Deep historical drawdownHigh
Max drawdown reached −74% in the backtest window. Size accordingly.
- Pre-live statusLow
Second Wave index. NAV is computed but the basket isn't yet open for live allocation.
| Scenario | Loss on net asset value |
|---|---|
| BTC loses half its valueLargest holding, 22.0% of the basket | −11.0%Mechanical |
| The three largest holdings fall 30%BTC, ETH, BNB · 52.0% of the basket together | −15.6%Mechanical |
| The deepest simulated fall repeatsRecorded once in the window, 405 days to recover | −74.3%Recorded |
| A bad month, one in twenty95% historical value at risk over 30 days | −21.2%Measured |
The mechanical rows hold every other holding still, which is the optimistic case. This basket measured 0.88 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.
The research behind the construction
Worth a second look later
OLV8 is under methodology review, so it carries no buy action today. The weights and the cadence are still being settled, and an order panel over rules that are about to move would put a commitment on the page the research has not earned. Everything above stays visible and updates with the study, so you can follow the work as it lands.