Funds Reports
Global Crypto Fund: June 2024 Report
In June, digital assets mean reverted from the May rally, resulting in a 25bps loss of alpha due to overexposure (circa 7%) to Ethereum and Solana. These higher beta tokens typically underperform Bitcoin in negative market conditions. However, our staking activities on Ethereum and Solana, yielding 5-10%, mitigated potential larger losses.
Key market drivers:
Overall, nothing really new in the asset class. As in any other macro asset, returns are very much concentrated in a short period of time and the expected inversion of the monetary policy in the US might trigger an interesting end of Q3 and Q4 for digital assets. For us it is very difficult to picture a world where, in 10 years, a big part of the financial system will not run on blockchain infrastructure which makes us extremely bullish on Ethereum and Solana.
Month Report GCF - June 2024
Key market drivers:
- Positive:
- (i) the approval of the Ethereum ETF might be close, supposedly late July;
- (ii) some Solana ETF applications have been submitted to the SEC (we find it a long shot though, since there aren't any futures contracts traded over Solana in regulated exchanges which would be fundamental for clearing the approval path and comply with the 19b-4 application stage demanded by the SEC)
- Negative:
- (i) potential selling pressure by the eminent release of $9B worth of Bitcoin to the Mt Gox* clients;
- (ii) the 20bp rise in US 10Y Treasury yields in the latter half of the month
Overall, nothing really new in the asset class. As in any other macro asset, returns are very much concentrated in a short period of time and the expected inversion of the monetary policy in the US might trigger an interesting end of Q3 and Q4 for digital assets. For us it is very difficult to picture a world where, in 10 years, a big part of the financial system will not run on blockchain infrastructure which makes us extremely bullish on Ethereum and Solana.
Month Report GCF - June 2024
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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.
