April 2025
Our managed funds recovered well in April after a challenging first quarter, as market sentiment around macroeconomic uncertainty started to stabilise. One notable trend we observed was gold (XAUUSD) reaching a new all-time high this month, which temporarily drew capital away from risk assets.
Despite this, Bitcoin remained remarkably resilient, especially as gold prices pulled back during the final week of April. This shift allowed our Digital Fund, which follows a long-only strategy, to gain 5.26% for the month. Meanwhile, our Market-Neutral Fund posted a modest increase of approximately 0.21%, consistent with its low-volatility profile.
Looking at the broader picture, the US economy contracted by 0.3% in Q1, according to the latest GDP data. This decline suggests that ongoing tariff tensions and tight monetary policy are putting pressure on growth. While the Federal Reserve held rates steady at 4.5%, inflation has eased to 2.4% year-on-year, supported by continued quantitative tightening at $5 billion per month.
These conditions point to a deliberate cooling of the US economy. In our view, this benefits safe-haven assets like gold—and increasingly, Bitcoin, which investors now see as a macro hedge. Should the next GDP report also show a decline, it could officially confirm a recession. However, that scenario may not negatively impact Bitcoin, as it’s already gaining recognition as a non-correlated, inflation-resistant asset.
Alpha Prime Trust
Alpha Prime Trust recorded a modest gain of 0.21% this month as we continued the gradual deployment of capital into our market-neutral strategy. Early in the month, funding rates remained relatively unattractive, prompting us to temporarily reallocate a portion of the portfolio into a reputable DeFi protocol. This move provided a defensive cushion during the initial week’s market pullback.
As funding rates improved mid-month, we reassessed our positioning and gradually increased exposure to the market-neutral strategy, which contributed to this month’s positive return.
Our DeFi strategy delivered a 0.20% gain, helping to support overall performance. While this yield was modest, it was consistent with a broader market environment where funding rates have only recently started to turn positive. Toward the end of the month, we observed a flattening in DeFi yields. As a result, we are currently evaluating whether to maintain this allocation or rotate it back into the market-neutral strategy.
Looking ahead, we remain cautiously optimistic. Futures market performance and positive developments surrounding U.S. tariff negotiations suggest the potential for an upward trend in the near term.
Digital Fund
Digital Fund posted a 5.26% gain this month, driven primarily by Bitcoin’s strong performance, which rose 12.49% at US$94,011.47. However, the fund’s overall return was tempered by Ethereum’s 4.25% decline and broader weakness in select altcoins. Uniswap and Telegram’s TON token notably underperformed, with losses of 13.33% and 21.98%, respectively. Despite the positive catalyst surrounding TON’s US$500 million real-world asset (RWA) bond announcement, its price continued to slide throughout the period.
Encouragingly, the fund rebounded from last month’s decline, supported by strong contributions from Monero (XMR) and Stacks (STX), which gained 26.65% and 28.12%, respectively. These results reflect a broader altcoin recovery, with STX in particular benefiting from Bitcoin’s resilience.