Funds Reports
Global Crypto Fund: January 2025 Report
Hey all,
Welcome to the 3CC Global Crypto Fund January Report, available for download below.
In January, the 3CC Global Crypto Fund delivered a strong +8,04%, continuing the positive momentum we saw throughout much of 2024.
As anticipated, all eyes were on the U.S. presidential inauguration, and the crypto community eagerly awaited new developments. On January 23, the Biden administration made its move with an executive order titled “Strengthening America's Leadership in Digital Finance Technology”. This marks a pro-innovation shift in U.S. policy, focusing on regulatory clarity, a national digital asset reserve, and the growth of dollar-backed stablecoins.
On the same day, the SEC rescinded SAB 121, a key rule blocking commercial banks from entering the digital asset space. Adding to the positive developments, several crypto-friendly figures were nominated for high-level positions within the U.S. government, including Paul Atkins for SEC Chair, Hester Peirce for the SEC Crypto Task Force, and Brian Quintenz for CFTC Chair— bringing expertise directly from a16z, the largest world's investor in the blockchain sector. All in all, pretty much bullish on digital assets.
From the events above, we would like to stress the strategic importance for the US to embrace stablecoins as a common form of money, so they can be accepted and promoted for everyone in the economy, from individuals to banks and businesses. In a new era of unconventional politics, marked by tariffs and bargaining tactics, the appetite for dollars can be put in question by US traditional trade partners and allies. The position of the dollar as a store of value and the dollarization of global financial flows has been a huge advantage for the U.S. economy, especially when it runs a 7% fiscal deficit together with a chronic current account imbalance. The leadership of the US on stablecoins will ensure that the dollar will remain king, with almost unlimited sources of demand. Payments will get even more digital, and digital money (stablecoins) will mean even more demand for dollar and dollar-backed debt instruments. A petrodollar-like deal of the 21st century with the advantage that does not depend on a third party.
To wrap up, European stocks saw impressive performance in January, with the DAX leading global markets. European equities have benefitted from the typical early-year portfolio reallocation, with capital flowing from expensive U.S. tech stocks into cheaper European names. The key question is: how long will this trend last?
Month Report GCF - January 2025
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Nuno Serafim
Managing Partner
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Nuno is an experienced financial executive with broad experience in the Asset Management industry, being board member of IMGA, where he served as Chief investment Officer, overseeing €3.4B of AuM before he founded 3 Comma Capital, together with Robert and Patrick Hable in 2022.
