GSR's Crypto Core3 model portfolio — an actively managed strategy tracking Bitcoin, Ethereum and Solana that underpins the firm's Nasdaq-listed Core3 ETF — has posted a one-year return of -57.8%, badly trailing even a simple equal-weight basket of the same three assets, which fell 49.84% over the same period. As of August 5, 2026, the portfolio was allocated 44.1% to Ethereum, 36.5% to Solana and 19.3% to Bitcoin.
Year-to-date, the underlying assets have each posted double-digit losses: Bitcoin is down 24.82% in 2026, Ethereum has dropped 35.49%, and Solana has fallen 40.21% — a spread that shows Bitcoin holding up considerably better than the two altcoins even as all three head lower.
An Active Strategy That Underperformed Its Own Benchmark
What stands out is that GSR's actively managed weighting did worse than doing nothing. The fund rebalances weekly and incorporates staking yield on its Ethereum and Solana positions to help offset losses, charging a 1% management fee for the service — yet its active tilts still lagged a static equal-weight mix by nearly eight percentage points over the year. The firm's most recent adjustment increased Bitcoin exposure and cut Ethereum as trading activity slowed and volatility eased, a shift that — based on Bitcoin's relative outperformance this year — looks directionally sound in hindsight, even if it wasn't enough to close the gap against the passive benchmark.
A Rough Year to Be Diversified Across Crypto
The scale of the drawdown is a reminder that diversification within crypto hasn't insulated investors the way it might in traditional multi-asset portfolios this year — all three of the assets in GSR's fund have moved lower together rather than offsetting each other. That's a notable contrast with gold's own rally this year, where the metal has repeatedly outrun even bullish Wall Street forecasts; the divergence has renewed debate over which asset is actually functioning as the market's preferred hedge in 2026.
