GSR Adjusts Core3 Portfolio as Crypto Markets Decline Sharply, Bitcoin Allocation Increased

Crypto market maker GSR adjusted its Core3 model portfolio on August 5, 2026, increasing its Bitcoin allocation to 19.3% and cutting Ether to 44.1% amid slowing trading volumes and easing volatility. The defensive rebalancing follows a steep market downturn where Solana and Ether fell 40.21% and 35.49% year to date, respectively. These sharp declines caused the Core3 portfolio to lose 57.78% over the past year, trailing an equally weighted basket of its constituent assets by 7.94 percentage points.

GSR Core3 portfolio performance

• ▪The GSR Core3 model portfolio recorded a one-year return of -57.78% as of August 5, 2026, trailing an equally weighted basket of its constituent assets by 7.94 percentage points.

Crypto market decline

• ▪Tether's market capitalization contracted by $4 billion over a 60-day period leading up to August 5, 2026, signaling capital outflows from the cryptocurrency market.
• ▪Over a one-year period ending August 5, 2026, Bitcoin fell 47.08%, Ether fell 44.73%, and Solana fell 54.89%.
• ▪As of August 5, 2026, Bitcoin declined 24.82% year to date, Ether fell 35.49%, and Solana dropped 40.21%.

Portfolio rebalancing strategy

• ▪GSR increased the Core3 model portfolio's Bitcoin allocation by 10.1 percentage points and reduced its Ether allocation by 9.0 percentage points compared to its July 15, 2026 allocation.
• ▪GSR attributed its portfolio rebalancing to proprietary quantitative signals amid slowing trading activity and easing volatility across Bitcoin, Ether, and Solana.
• ▪On August 5, 2026, GSR adjusted its Core3 model portfolio allocation to 44.1% Ether, 36.5% Solana, and 19.3% Bitcoin.

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