GSR Bets Big on Solana as Bitcoin Allocation Falls to 17%

GSR, a crypto market maker, made significant changes to its Core3 model portfolio. The firm reduced Bitcoin's (BTC) weighting to 17%, its lowest allocation among the three assets tracked. Solana (SOL), on the other hand, saw its weighting rise to 43.6%, making it the model's largest position.

This shift reflects short-term price action rather than long-term returns. Over the past week, Solana gained 2.98% while Bitcoin fell 1.02% and Ether slipped 0.20%. However, Solana remains the weakest performer over a longer horizon, down roughly 36.69% year-to-date and 60.80% over the past year.

The Core3 model favors recent relative strength over trailing performance, which allows it to raise exposure to assets with fresher upside momentum. This approach may add risk without adding return, as evidenced by the model's 70.28% loss over the past year compared to a 63.44% loss for an equal-weight basket.

Solana's high volatility reading of 48.84%, nearly nineteen points above Bitcoin's 29.49%, makes it the swing factor in Core3's near-term returns. The model now trails its own benchmark, and whether this week's momentum in SOL carries into the next rebalance remains to be seen.