2 weeks ago
Corporate adoption of bitcoin BTC is well-known, and astir of it involves a classical buy-and-hold strategy, loosely analogous to the dollar-cost averaging (DCA) strategy.
While investors of each kinds wide similar DCA, caller probe by crypto options marketplace shaper Orbit Markets shows that since 2023, it has underperformed a structured merchandise called an "accumulator," popularly known arsenic "I Kill You Later" successful accepted markets.
"Our backtest results amusement that the accumulator strategy outperformed DCA implicit the past 2.5-year period," said Pulkit Goyal, caput of trading astatine Orbit Markets, told CoinDesk. "Three-month accumulators delivered a 10% outperformance, portion longer tenors did adjacent amended — six- and twelve-month accumulators outperformed by 13% and 26%, respectively."
Goyal added that accumulators connection a disciplined, cost-effective attack to token accumulation, making them "a earthy acceptable for crypto treasury companies' usage case."
Both DCA and the accumulator run the aforesaid rule – halt timing the market. While DCA simplifies investing by spreading retired purchases implicit time, the accumulator helps get coins astatine a discount successful a structured setup and helps outperform DCA during bull runs.
Primer connected accumulator
The accumulator is simply a time-structured merchandise linked to the show of an underlying plus with an upside knock-out obstruction – level, which, if hit, terminates the structure.
Here is however it works: An capitalist agrees to bargain a definite magnitude of the underlying plus astatine a fixed, discounted terms (the Strike) implicit regular intervals, specified arsenic regular oregon weekly, for a acceptable period.
The merchandise runs done the pre-determined acceptable play unless terminated aboriginal owed to an aboriginal knock-out by the spot terms rising to the barrier.
Note that the capitalist has an obligation, not a choice, to bargain the plus astatine the discounted onslaught terms and indispensable treble the bargain successful lawsuit the spot terms dips beneath the discounted strike.
Example of BTC accumulator
Consider a three-month accumulator wherever an capitalist commits to bargain $1,000 worthy of BTC each week astatine a onslaught terms of $94,500, with a knock-out level of $115,000.
The onslaught terms of $94,500 is 90% of the existent spot terms of astir $105,000. In different words, the capitalist is present mandated to drawback up coins astatine a discount, assuming the spot terms holds supra the onslaught terms of $94,500 and beneath the knock-out of $115,000.
If BTC tops the knock-out level, the operation is terminated.
If the terms falls beneath $94,500, the capitalist doubles the play acquisition to $ 4,000 astatine the aforesaid strike, i.e., $94,500 – determination is nary mode out, meaning the capitalist ends up buying astatine a terms higher than the prevailing marketplace rate. (this is wherefore it gets the nickname "I termination you later.")
Hence, the accumulator is not suitable for time traders, short-term traders and speculators and whitethorn not needfully outperform DCA successful a carnivore market.
Backtesting
Orbit backtested a three-month BTC accumulator, spanning from January 2023 to June 13, 2025, assuming the capitalist continuously rolled into a caller 1 upon reaching maturity oregon a premature knock-out event.
Results amusement an mean BTC acquisition outgo of $39,035 for the accumulator, which is 10% little than the DCA mean acquisition terms of $43,329. The DCA progressive investing a fixed dollar magnitude successful BTC each week.
Longer maturity accumulators of 6 and 12 months performed adjacent better, achieving mean costs of $37,654 and $32,079, respectively, outperforming DCA by 13% and 26%.
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