BESO targets the three largest cryptocurrencies by market cap outside of Bitcoin, providing concentrated exposure to Ethereum, Solana, and whichever coin holds the #4 spot. This fund exists for investors who want crypto's upside but think Bitcoin has already run too far.
How It Works
The fund holds equal weights in the top three non-Bitcoin cryptocurrencies, rebalanced quarterly to capture market cap shifts. Unlike broader crypto indices that include dozens of tokens, BESO's three-asset approach concentrates on established protocols with actual usage. The equal weighting prevents any single coin from dominating returns, though Ethereum typically represents the largest underlying exposure given its market position.
Key Features
- Pure-play on Bitcoin alternatives with just three holdings versus 20+ in broader crypto ETFs
- Equal weighting captures mean reversion between major alts rather than market-cap chasing
- Quarterly rebalancing automatically rotates into rising protocols as rankings shift
Risks
- Ethereum correlation means 33-50% drawdowns are normal; 70%+ crashes have happened before
- Regulatory crackdown could freeze redemptions or force liquidation at terrible prices
- The #3 spot changes frequently — you might own yesterday's winner heading to zero
Who Should Own This
Built for crypto believers who missed Bitcoin's early gains and want to bet on 'Ethereum flipping Bitcoin' narratives. Works as a 1-3% portfolio position for aggressive investors comfortable losing most of their investment. Anyone who can't stomach seeing their position cut in half shouldn't touch this.