Earnio Results of February 2024

February is the second month in within which the bitcoin market is being affected by bitcoin spot ETFs (short for exchange-traded funds). These are investment vehicles, funds traded on regulated stock exchanges that have spot bitcoin as an underlying asset. These ETFs buy bitcoin and market participants can buy shares in these funds instead of having to buy bitcoin directly.

The possibility of investing in these funds is particularly interesting for large banks, large financial institutions, hedge funds and the like. That is, for entities that want to be exposed to bitcoin but are looking for a regulated environment and don't want to deal with its security, wallets and the like.

And the demand for bitcoin from institutions was what drove the price of bitcoin up.

Immediately after the approval, there were indeed sell-offs by the Grayscale Bitcoin Trust, which transitioned from the legal form of a closed-end trust to an open-end ETF fund, and some of its participants decided to realize a profit, but purchases by the other 9 ETF funds eventually far outpaced these sell-offs.

As a result, the market formed a significant uptrend in February, with periods of growth interspersed with only brief accumulations. It's almost as if bitcoin was just taking a moment to breathe for a new run to the upside. These accumulations go mostly sideways and any correction is immediately bought out.

You can see the growth and accumulation levels highlighted by the blue line. In pale blue is a short correction that was quickly "absorbed". Source: tradingview.com
You can see the growth and accumulation levels highlighted by the blue line. In pale blue is a short correction that was quickly "absorbed". Source: tradingview.com

How has the market situation affected our portfolio?

Because the market experienced a short-term slump after the bitcoin ETF was approved, our growth algorithmic strategies were still off in January and we were working with general strategies designed more for the crab market, waiting for a possible correction.

By February, however, it was clear that, at least for now, the bulls were dominating the market. Capital inflows into ETFs did not subside, on the contrary, they increased.

Waiting for a correction that may not come may not always pay off. That's why we also switched on growth algorithmic strategies during February. These strategies work with about 10% of our capital in Earnie and use trading leverage, which makes us more capital efficient as we don't need such a large amount of funds to open a trading position. However, strict risk management is even more important because you are trading with "borrowed" money and just as it can multiply profits, it can multiply losses.

Here's a sample of two trades that nicely traded up in price during February

Trade on UNIUSDT pair Source: stock exchange Bybit, Earnio account
Trade on the LINKUSDT pair, Source: stock exchange Bybit, Earnio account

In February, trading with our semi-automated bot on Telegram was also launched. The way it works is that our analyst instructs Telegram to add a symbol to the trade. From there, the order goes to the "intermediate layer" where it checks if the symbol is liquid, if it can be traded on the exchange, and also determines the position size.

A trade order is then automatically created on the exchange, where the move is traded according to a preset formula if the specified market conditions are met.

The advantage of this tool is that it speeds up the work of analysts, who do not have to "worry" about managing the trade itself. The algorithm itself does that for them.

Here, for example, you can see how the analyst entered an order to trade the symbol COTIUSD and then the trade, after meeting the preset conditions, was executed on the exchange.

Source: Telegram

Source: Tradingview

Thanks to a well-blended mix of strategies, we can claim a nice profit of 4.05%, which is a total of 234,001 USDC. Within the Probinex Network, we are paying out USDC102,884 in Earnio proceeds.