This composition has been specified to optimise the risk profile, volatility, and cost of carry of the underlying basket. We firmly believe this basket to be one which outperforms over the medium term, as the implementation of new technologies such as robotics, drones, and wearable technology become more prevalent.
Investors in cryptocurrencies are by their very nature forward looking, and we see the technology metals growth story as being a key driver. In terms of the Electric Vehicle/EV play, we have already seen a great appreciation of key battery metals (notably cobalt) and much of the future growth projections for other base metals (notably nickel and aluminium) incorporate a view which sees much more demand stemming from Electric Vehicle proliferation.
Stability metals have been chosen to lower the cost of carry and decrease volatility. The usage of gold also provides enhanced liquidity and protection against currency risk.