January 2025
Alpha Node Capital has experienced a positive performance in January on its managed investments as the Digital Fund registered a 5.38% gain while Alpha Prime Trust with 0.31% returns. These results came despite negative returns from the majority of the altcoin market, as bitcoin garnered a positive 10.71% return to finish the month at US$105,508.46. The underperformance of altcoins also impacted funding rates and signalled a weak market sentiment, which in turn dampened the returns gained in Alpha Prime Trust. These performances occurred after US President Donald Trump’s inauguration which is typical of a change in sitting President.
The new US administration will tackle the crypto regulations with commentators anticipating a clear pro-stance on crypto. Paul Atkins, Trump’s crypto-friendly pick for SEC chair and former agency commissioner, is widely expected to end a crypto crackdown led by President Biden’s Democratic SEC chair Gary Gensler (who resigned on 20 January 2025), but it is unclear when the Senate will confirm him.
Alpha Prime Trust
Alpha Prime Trust performed well this month as we locked in gains ahead of the volatility, posting approximately 0.31% profits. The fund mitigated the altcoin risk during the election week through the market-neutral and DeFi strategy whilst maintaining a positive performance. Despite funding rates easing during the inauguration week, the DeFi strategy-maintained strength with returns of 1.76% for the month. The momentum strategy still lagged in line with the decline in altcoins. The portfolio remains well positioned to deliver solid delta-neutral returns when market momentum resumes.
Digital Fund
Digital Fund registered an 5.38% gain as the market performed mixed results. As mentioned, Bitcoin remained resilient in its performance since catalysts such as the Bitcoin Strategic Reserve may come to fruition with President Trump’s administration. We have seen a notable increase in institutional presence in Bitcoin, as shown in the price action when the market declines while Bitcoin sustains above the US$90K range. As Bitcoin stays range bound, its average cost base gradually rises, alleviating some of its temporary semi-euphotic valuation levels with many indicators suggesting we are mid-market cycle.