April 2026
The Digital Fund returned 5.85% over the month, while the Alpha Prime Trust returned -0.12% over the same period.
Crypto markets recovered over the month following a weak first quarter, with renewed institutional demand through US spot Bitcoin ETFs providing the clearest positive driver. April recorded the strongest month of 2026 for spot Bitcoin ETF inflows, and aggregate flows into digital asset funds improved as the month progressed. The recovery remained spot-led throughout, with derivatives positioning and perpetual funding rates staying cautious even as spot prices rose. Into month-end, oil prices reached their highest level since the onset of the Iran conflict, and the Federal Reserve held rates steady on 29 April with market attention centred on inflation and energy-price risks rather than near-term easing. This created a less supportive macro tone in the final sessions, even as crypto finished the month higher overall.
Digital Fund
The Digital Fund returned 5.85% over the month. Bitcoin rose 14.62% to close at US$76,450, supported by strong spot ETF inflows and a spot-led recovery that persisted even while perpetual funding rates remained in negative territory for much of the month. Ethereum gained 10.31% to close at US$2,265.34, contributing positively though lagging Bitcoin in institutional demand and relative strength over much of the period.
Outside the benchmark holdings, Monero was the strongest contributor, returning 16.60% in a move consistent with the broader recovery across large liquid altcoins. Uniswap was the principal detractor, falling 9.38% against the backdrop of persistent DeFi weakness through the month. A strengthening Australian dollar against the US dollar also created a significant drag on AUD-denominated valuations of 5.19%.
Alpha Prime Trust
The Alpha Prime Trust returned -0.12% over the month. Spot crypto prices recovered strongly over the period, but the recovery was driven by spot buying rather than leveraged positioning, a distinction that matters considerably for the Trust’s strategies. Bitcoin perpetual funding rates stayed negative for most of the month despite rising prices and growing open interest, which compressed carry returns and kept futures basis premia subdued. For a fund oriented toward yield and relative-value trades, this was a less favourable environment than a rising-price backdrop would ordinarily suggest.
Following the month-end, the Investment Committee met and approved adjustments to the Trust’s positioning, reducing the basis trade allocation and increasing exposure to FX and DeFi strategies. A number of additional strategies are currently in testing outside the fund and, subject to final approval, are expected to be incorporated in the coming weeks. We expect these adjustments to improve the funds results.