Portfolio analysis is an essential discipline in any asset class. In the case of crypto, the initial generation of portfolio analysis methods are based on the same metrics used for other asset classes. However, the crypto market has unique characteristics that can enable new forms of portfolio intelligence. Can we innovate beyond that? This session proposes a series of new ideas and methods for providing intelligence to crypto portfolios. Specifically, we will explore how the combination of portfolio information and blockchain datasets provides unique insights that expand beyond traditional portfolio theory. WE will be presenting a series of practical signals that can be applied to your crypto portfolio today.

1. Portfolio
Analytics for
Crypto Assets

2. Agenda
❖ Portfolio Theory & Key Differences
❖ ITB’s Data-Centric Approach
❖ Insights & What’s to Come
2

3. 1
Portfolio
Theory & Key
Differences
3

4. Modern Portfolio Theory
▸ MPT introduced by Harry Markowitz in 1952
▸ Expected return given a level of risk
▹ Risk = standard deviation or variance
▸ Diversification based on asset correlations
▸ Capital allocation based on risk-return
4

5. Portfolio Allocation
▸ Risk profile
▸ 60/40 portfolio
▹ 60% stocks
▹ 40% bonds
▹ Alternative assets?
▹ Limitations
▸ Kelly Criterion
5

6. Tools to Analyze Portfolios & Positions
▸ Profit & Loss
▸ Asset Correlations
▸ Sharpe Ratio
▸ Sortino Ratio
▸ Tracking Error
▸ Information Ratio
6

7. Traditional Finance vs Crypto
7
“Decentralized enough to not qualify as securities” - CFTC
Traditional Finance Crypto Finance
Trading
Hours
9am - 4pm (US) 24/7
Types of
Assets
Equities, bonds,
commodities, derivatives,
cash
Commodities (BTC, ETH), securities
(centralized tokens, STOs), cash
equivalents (USDT, DAI)
Sources of
Income
Trading, dividends, yields Trading, mining, staking
Volatility Low-Medium* High-Very High

8. Traditional Finance vs Crypto
8
Traditional Finance Crypto Finance
Market
Maturity
Mature, efficient* Nascent, inefficient
Blockchain’s nature enables new forms of portfolio analysis by
combining and comparing information from your portfolio with others

9. 2 ITB’s Approach

10. 10
Market Intelligence Personalized for
Investors’ Portfolios

11. 11
Delivering Actionable Intelligent Services
Based on ITB’s Analytics Infrastructure

12. 12
Combining Market Intelligence & User’s Portfolio
Existing & Upcoming ITB Analytics:
▸ Financial indicators
▸ Network activity
▸ Ownership patterns
▸ Exchange heuristics
▸ Social sentiment
▸ Derivatives trading
▸ Predictions

13. 3
ITB Crypto
Portfolio
Insights
13

14. Portfolio Asset Predictions
14
Real-time price predictions:
▸ Machine learning efforts
▸ Tailored to your holdings
▸ Not financial advice

15. Onchain Support & Resistance
15
▸ Based on blockchain positions
(IOMAP)
▸ Resistance from holders looking to
break-even
▸ Support from holders looking to
add to their positions

16. Personalized Token Indicators
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▸ Personalized version of IOM
▸ Track how your position compares
to others in the blockchain
▸ Real-time and historical
▸ Updated accordingly

17. Personalized Token Indicators
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▸ Personalized application of token
concentration stats (Whales,
Investors, Retail)
▸ Track your holdings relative to all
addresses or similar addresses
▸ Real-time and historical
▸ Updated accordingly

18. Personalized Token Indicators
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▸ Extension of ownership by time
held (Hodlers, Traders, Cruisers)
▸ Comparison vs trading activity
from other addresses
▸ Real-time and historical
▸ Updated accordingly

19. Other Portfolio Signals
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▸ Crypto-adjusted ratios to include alternative earnings
▸ “Addresses like mine” - clustering and activity tracking
▸ Trading patterns analysis
▸ Derivatives simplifier

20. Implementation
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▸ With top crypto exchanges and wallets
▸ IntoTheBlock account integration
▸ Fitting all the pieces
▸ Work in progress

21. ▸ Traditional portfolio analytics tools may be
outdated
▸ Cryptoassets have key differences that don’t
align with traditional portfolio analysis
▸ Blockchain’s public and immutable nature
enables innovative solutions
▸ Work in progress - make sure to send us your
feedback
▸ Follow us and keep an eye out for our releases!
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Conclusions

22. 2222

23. INTRODUCING
CONTACT INFORMATION
Lucas Outumuro
Senior Analyst
loutumuro@intotheblock.io
Thank you! Any questions?