March 2025
Alpha Node Capital experienced mixed results as macroeconomic uncertainties impacted our managed funds. Our Digital Fund declined by 6.04%, largely due to the significant drop in altcoins within the portfolio. Meanwhile, Alpha Prime Trust retracted 0.06% amidst the volatility. We strategically shifted holdings into stable assets to counter sector-wide declines and unfavourable funding rates.
Despite market uncertainty, we observed a major policy shift in the U.S. with the approval of the U.S. Strategic Bitcoin Reserve under President Donald Trump. While this has yet to impact Bitcoin’s price, it signals growing government interest in crypto. The reserve will hold seized assets from enforcement actions, including Bitcoin, Ethereum, Ripple, Solana, and Cardano, without plans to sell them.
Additionally, Senator Cynthia Lummis has reintroduced the Bitcoin Act, proposing the U.S. acquire 5% of Bitcoin’s total supply or 1 million BTC over the next five years. Though the bill is still pending, it aligns with the administration’s pro-crypto stance. If passed, it could encourage other governments to follow suit, potentially driving Bitcoin demand and valuation higher.
Alpha Prime Trust
Alpha Prime Trust recorded a 0.06% loss this month amidst the ongoing market uncertainties. Our DeFi strategy helped to lessen the impact, which delivered a 0.69% monthly yield. While the fund remained in stable assets, we have been gradually redeploying capital into a market-neutral strategy. The continued unfavourable funding rates limited overall performance, but our DeFi yield helped offset these challenges, allowing us to stay profitable despite broader market declines.
Given the persistent headwinds from funding rates, we are actively exploring new yield-generation opportunities. This includes evaluating alternative exchange platforms beyond Bybit and identifying additional DeFi protocols to maximize returns on idle market-neutral allocations.
Market sentiment remains cautious, as reflected in the record-high Gold prices, suggesting that investors are seeking safe-haven assets. This trend could indicate preparation for a potential market downturn, reinforcing our focus on strategic allocation and risk management.
Digital Fund
Digital Fund continued its retracement, posting an 6.04% loss this month. Altcoins in the portfolio struggled as investors shifted toward safer assets. Bitcoin held steady at $83,574.44 or a 0.36% decline, offering some support to the fund, but the overall altcoin downturn outweighed its stabilising effect. Ethereum fell 16.99% to $1,843.78 following news that the Pectra upgrade is now delayed until May 2025.
Despite the broader market decline, some assets stood out. Telegram’s TON token surged 20.90% to $4.05, benefiting from its strong user base. Our long positions in Cardano also contributed, gaining 14.21% at US$0.658. Cardano was included in the US Strategic Bitcoin Reserve, and those seized ADA will be in reserve forever.