August 2025
Alpha Node Capital recorded mixed results in August, with the Digital Fund returning -2.70% and Alpha Prime Trust delivering +0.40%. The month opened with risk appetite still elevated after mid month all time highs in major coins, then momentum flipped as bitcoin retraced from above US$124,000 to finish near US$108,000. Ether rose through much of the month on persistent rotation and product flow support, which contrasted with bitcoin weakness into month end. Market structure was active, with combined spot and derivatives volumes on centralised exchanges reaching the highest monthly total of 2025 and open interest rising, a backdrop that rewarded relative value and basis oriented approaches more than outright beta.
Derivatives conditions shaped price action. A sharp rally around 22 August forced sizeable liquidations as prices rebounded off support, followed by softer derivative participation into the final week, consistent with a market working through a post euphoria range. Open interest across exchanges increased in August, yet funding signals were generally modest, with periods of positive bias that did not always translate into sustained trend. These features align with a market transitioning from impulse to consolidation, which favoured neutral and arbitrage strategies relative to long directional exposure.
Macro conditions provided an additional backdrop. The United States dollar weakened in August as markets priced a high probability of a September Federal Reserve rate cut, and as attention centred on Chair Jerome Powell’s Jackson Hole remarks. The Australian dollar strengthened over the month alongside this softer dollar profile.
Alpha Prime Trust
Alpha Prime Trust delivered 0.40% gains after fees in August. Arbitrage strategy performed with 1.17% gain and Forex strategy at 0.74%. Both are new strategies and are being monitored closely for execution quality, liquidity depth and drawdown behaviour. Once we have sufficient confidence in live performance and risk controls, we expect to increase allocation in a measured way. Market-neutral returned +1.03% and DeFi contributed +0.55%. The result reflected consistent basis capture in cash-futures and exchange-spread trading during a month of record 2025 aggregate volumes. Derivatives open interest rose by 4.92%, which supported funding-sensitive carry and cross-venue opportunities as spreads widened and then normalised into month end. Directional signals turned mixed after the mid-month highs.
On regulated venues, CME Bitcoin futures open interest fell by 18.70% during August, from 16,053 to 13,501 contracts, while CME Ether futures open interest rose by 6.90% to a record 13,783 contracts. That mix was consistent with the rotation toward Ether seen in August flows. Late in the month, perpetual open interest remained elevated and funding rates were positive across most major tokens, conditions that supported basis and carry strategies until volatility spiked into expiry.
The expiry on 29 August was a defining event for market structure. Deribit data indicated a very large notional roll-off, with Bitcoin positioning biased to puts and Ether more balanced. Basis and funding dynamics shifted accordingly, which reduced the effectiveness of market-neutral carry as the month closed. The strategy outcome was a slight decrease, driven by this end-period regime change.
Digital Fund
The Digital Fund retracted 2.70% in August. The result reflected an adverse mix of large cap weakness and select altcoin gains, set against a modestly firmer Australian dollar through the month. The Australian dollar traded mostly between US$0.64 and US$0.65 in August and ended near the top of that band, which slightly reduces translated performance when the portfolio is valued in Australian dollars while assets are priced in US dollars.
Contributors were led by Chainlink at +35.96% with a month end price of US$23.78. Chainlink rallied on August product and token updates and cleared key resistance during the 22 August upswing. Market coverage highlighted renewed buyback activity and network progress across cross chain messaging and data delivery, which supported relative strength versus broader large caps. Ether added +18.42% to finish at US$4,484.83. Institutional participation was visible in listed futures where open interest on CME reached a record in late August, consistent with the rotation into ether that helped the asset hold gains while bitcoin faded into month end.
Detractors were led by bitcoin at -8.00% with a month end level of US$108,813.00. Bitcoin surrendered mid month highs and closed the month near the lower end of the August range as capital rotated and derivatives positioning reset after the 22 August squeeze. This lined up with wider market commentary that August was a difficult month for bitcoin, even as liquidity remained strong. Monero fell -13.82% to US$261.39. The asset faced additional venue headwinds during August, including notice of a derivatives delisting on a major exchange, which weighed on sentiment. Maker ended at US$1,545.28. Market coverage in August focused on ongoing governance changes around the Endgame roadmap and token migration timelines, which kept attention on structural rather than price catalysts.