Strategies · Core
Rebalancing Premium in Cryptocurrencies
Run a frequent rebalance across a crypto basket to harvest volatility and dispersion — a diversity/rebalance premium, not a coin pick.
Definition
Equal-weight (or inverse-vol) a set of large coins, rebalance daily or weekly. High vol + imperfect correlation creates a rebalance bonus versus buy-and-hold weights that drift into the winner. Fees and spreads can erase it.
Why it matters
Crypto vol is high enough that rebalance math is first-order. So are costs and exchange gaps.
Case
A daily equal-weight of thin alts. The paper bonus was the bid-ask. BTC+ETH weekly is the only honest test for most books.
How to read it
Universe, fee, and transfer/withdrawal friction. If you cannot rebalance at the assumed cost, you do not have the premium.
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