Privacy Coin Cycle
−18.6%
since Sep 30
The idea
I believe crypto is entering a multi-year cycle led by privacy coins, with Zcash out front rather than fading. To express it, I own a mix of price proxies (a Zcash trust, bitcoin, ether and solana funds), coin treasury companies, and the businesses that benefit either way: exchanges, miners, and stablecoin rails. Zcash exposure gets the largest slice, but the mix is broad enough to still work if a different coin ends up leading. I keep some cash on the side and plan to hold for years rather than trade the swings.
What it owns
- Trading venues earn fees on every transaction across all cryptocurrencies, profiting regardless of which coins outperform. · Coinbase GlobalIt earns trading fees across every cryptocurrency market, profiting from cycle activity regardless of which coins lead., Robinhood MarketsIt reaches everyday retail buyers entering cryptocurrency markets, capturing growth as trading volumes rise., Galaxy DigitalIt profits from trading, lending, and dealmaking across cryptocurrency markets, benefiting from broader industry activity., Gemini Space StationIt is a smaller exchange with room to grow as cryptocurrency trading volumes surge., BullishIt serves institutional traders, capturing growth as large money flows into cryptocurrency markets.23%
- Spot cryptocurrency ETFs provide direct exposure to major coins if digital assets lead markets over the coming years. · iShares Bitcoin Trust ETFIt offers spot bitcoin exposure, the foundation of any broad cryptocurrency leadership cycle., iShares Ethereum Trust ETFIt provides direct exposure to ether, the second major pillar of a broad cryptocurrency cycle., Bitwise Solana Staking ETFIt provides exposure to Solana, which historically outperforms bitcoin during cryptocurrency leadership cycles.19%
- Mining operations earn directly in cryptocurrency and their stocks historically amplify coin price rallies. · IREN LimitedIt mines bitcoin and converts capacity into datacenters, winning from both rising coin prices and compute demand., MARA HoldingsIt is the largest bitcoin miner with earnings that scale directly with bitcoin price, amplifying returns in a rising cycle., Riot PlatformsIt is a large bitcoin miner whose profits swing with coin prices, providing diversification across multiple major producers., Hut 8It pairs bitcoin mining with owned power assets, cushioning downside and amplifying upside while keeping costs low., CleanSparkIt mines bitcoin at industry-leading low costs, allowing it to remain profitable where other miners struggle during the cycle.18%
- The take centers on Zcash itself, so US-listed vehicles holding it carry the largest single exposure to this core position. · Grayscale Zcash TrustIt provides direct exposure to Zcash holdings through a US-listed vehicle, carrying the core bet that privacy coins lead the next cryptocurrency cycle., Cypherpunk TechnologiesIt holds Zcash on its balance sheet, moving with the coin and amplifying gains as privacy coins lead the cycle.13%
- Infrastructure that moves dollars in and out of cryptocurrency markets grows alongside increasing adoption and trading volumes. · Circle Internet GroupIt operates USDC stablecoin, which grows in circulation and revenue as cryptocurrency activity expands., Block IncIt builds bitcoin payments infrastructure and holds bitcoin, winning if the cycle drives cryptocurrency into everyday spending.9%
- Companies holding cryptocurrencies on their balance sheets amplify price movements of those assets in both directions. · MicroStrategyIt holds a large bitcoin treasury financed partly with borrowed capital, amplifying gains beyond the coin's price in a rising cycle., Bitmine Immersion TechnologiesIt holds a large ether position, providing amplified exposure to ether price appreciation in the cycle.8%
- Cash10%