The post ‘Accumulator’ (a.k.a I Kill You Later) Contracts Better Fit for Corporate Treasuries Than Dollar-Cost Averaging (DCA), New Research Suggests appeared on BitcoinEthereumNews.com.

Corporate adoption of bitcoin is well-known, and most of it involves a classic buy-and-hold strategy, loosely analogous to the dollar-cost averaging (DCA) strategy. While investors of all kinds widely prefer DCA, new research by crypto options market maker Orbit Markets shows that since 2023, it has underperformed a structured product called an “accumulator,” popularly known as “I Kill You Later” in traditional markets. “Our backtest results show that the accumulator strategy outperformed DCA over the past 2.5-year period,” said Pulkit Goyal, head of trading at Orbit Markets, told CoinDesk. “Three-month accumulators delivered a 10% outperformance, while longer tenors did even better — six- and twelve-month accumulators outperformed by 13% and 26%, respectively.” Goyal added that accumulators offer a disciplined, cost-effective approach to token accumulation, making them “a natural fit for crypto treasury companies’ use case.” Both DCA and the accumulator operate the same principle – stop timing the market. While DCA simplifies investing by spreading out purchases over time, the accumulator helps acquire coins at a discount in a structured setup and helps outperform DCA during bull runs. Primer on accumulator The accumulator is a time-structured product linked to the performance of an underlying asset with an upside knock-out barrier – level, which, if hit, terminates the structure. Here is how it works: An investor agrees to buy a certain amount of the underlying asset at a fixed, discounted price (the Strike) over regular intervals, such as daily or weekly, for a set period. The product runs through the pre-determined set period unless terminated early due to an early knock-out by the spot price rising to the barrier. Note that the investor has an obligation, not a choice, to buy the asset at the discounted strike price and must double the buy in case the spot price dips below the…

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Filed under: News - @ June 18, 2025 6:23 pm