May 2026
Alpha Node Capital recorded mixed results across its flagship funds in May. The Digital Fund declined by 4.17%, reflecting broader market volatility, while the Alpha Prime Trust maintained its resilience with a positive return of 0.21%.
The month began with a constructive outlook as progress on the CLARITY Act bolstered investor sentiment and drove initial inflows. However, this momentum was curtailed by escalating geopolitical tensions between the United States and Iran. The second half of the month saw a shift in market direction, characterised by sustained outflows from digital asset investment products. These pressures culminated in deeper ETF withdrawals and a wave of derivatives liquidations toward month-end, weighing heavily on major asset prices.
Digital Fund
The Digital Fund returned -4.17% over the month. Bitcoin declined 3.80% to close at US$73,545. Ethereum fell 11.36% to close at US$2,007.90, breaking below the US$2,100 support level late in the month as outflows persisted.
Outside the benchmark holdings, Stellar token was the strongest contributor, returning 56.74% to close at US$0.25. Late in the month, DTCC and the Stellar Development Foundation announced plans to connect DTC’s tokenisation service with the Stellar network, a concrete institutional development that supported Stellar’s relative strength against an otherwise weak market. Sky token was the principal detractor, falling 16.67% to close at US$0.07, consistent with broad weakness across DeFi tokens through the month.
Alpha Prime Trust
The Alpha Prime Trust returned +0.21% over the month. Market structure, rather than directional price moves, shaped trading conditions through the period. Bitcoin perpetual funding rates remained negative through early and mid-May, reflecting cautious positioning and reduced speculative demand that compressed carry available to market-neutral and relative-value strategies. Short-dated implied volatility was subdued early in the month, with BTC seven-day implied volatility near 31%, before options markets shifted toward downside hedging via put-call skew late in the month without a broad volatility spike materialising. Ethereum derivatives conditions were similarly unsupportive, with a brief early-month call premium giving way to put premium as ETH failed to hold key price levels. The strategy was rebalanced in May amongst existing strategies with the view to better balance risk returns.