By Brett Munster
Blockforce recognized as Hedgeweek’s 2024 “Multi-Strategy Fund of the Year”
Blockforce Capital is honored to share that we have once again been recognized for exceptional performance in the digital asset industry, this time earning the title of 2024 “Multi-Strategy Fund of the Year: Annual Excellence” by Hedgeweek. This award is the result of a rigorous, independent evaluation process, during which Hedgeweek analyzed the performance and risk metrics of hundreds of digital asset fund managers.
This latest recognition joins a growing collection of honors that reflect our consistency and resilience over time. Last year, we were named the 2023 Best Multi-Strategy Fund by Hedgeweek. The year before, we were awarded Best Sustained Risk Adjusted Performance for our track record over a 36-month period. In 2022, we were recognized twice—Preqin ranked us as the #1 Multi-Strategy Hedge Fund of 2021, and Hedgeweek awarded us Best Digital Asset Fund of 2021. Going back even further, both Preqin and BarclayHedge listed us among the Top 10 Crypto Hedge Funds by Net Returns in 2020.
We’re genuinely grateful for the recognition, and to be clear, every accolade we’ve ever received has been earned—we have never once paid for an award. We take pride in the integrity of our process, and it’s gratifying to see that discipline reflected in these honors.
These awards represent more than just strong performance metrics. They validate the importance of having a rigorous, research-driven approach, robust risk management, and a commitment to innovation in one of the most volatile and fast-moving sectors in finance. While we’re proud of the accolades, we’re even more proud of the Fund’s longevity and ability to thrive in the chaotic terrain of digital asset markets.
To our investors, thank you for your continued confidence in our approach. To our team, your dedication and expertise continue to drive our success. As always, we believe that staying grounded in disciplined strategy and deep research will outperform fleeting trends and hype over the long run—and these recognitions serve as proof of that conviction.
America’s bid to lead the bitcoin arms race
Earlier this year, President Trump signed an executive order establishing a Strategic Bitcoin Reserve (SBR) by consolidating approximately 200,000 BTC already held by the U.S. government. Think of it as a digital Fort Knox—a long-term store of value governed by strict rules prohibiting any future sale of the bitcoin. The idea behind the reserve is to gradually grow its holdings using budget-neutral strategies and ensure that no additional government spending is required.
However, there’s a catch: executive orders are inherently temporary. They can be reversed by any future administration with the stroke of a pen. That’s why momentum is building to enshrine the SBR into law through congressional action. Codifying it would make the reserve significantly more durable and resistant to political turnover. Lawmakers could even impose a cryptographic time lock, preventing the BTC from being sold for a fixed number of years regardless of who’s in power. Moreover, congressional approval would unlock a much broader range of tools and resources for acquiring more bitcoin than the executive branch could manage on its own.
Enter Senator Cynthia Lummis (R-WY), who has reintroduced the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide” Act—better known, somewhat conveniently, as the BITCOIN Act. And yes, it does seem like politicians spend more time crafting the acronym of bills than writing them. Still, the goal is serious: to cement the Strategic Bitcoin Reserve into federal law, giving it lasting legal backing beyond the reach of changing administrations. Over in the House, Congressman Nick Begich has introduced a companion bill to help speed things along and maintain momentum.
If passed, the BITCOIN Act would authorize the U.S. Treasury to acquire up to 1 million BTC over five years—nearly 5% of bitcoin’s total supply. Notably, the bill doesn’t call for new spending or tax increases. Instead, it proposes reallocating existing assets within the Federal Reserve and the Treasury to fund the reserve’s expansion.
Senator Lummis has made it clear that this isn’t just about technology—it’s about national strategy. She argues that the BITCOIN Act is a way to enhance America’s economic resilience, address the national debt, and help ensure U.S. competitiveness in an era where digital assets play a growing geopolitical role. At a recent bitcoin conference in Las Vegas, Lummis said the bill is gaining traction and confirmed that President Trump supports it. Though it’s third in line behind two other crypto-related bills (stablecoins and market structure), she expects it to reach the Senate floor for a vote in the near future.
Lummis also stressed her goal for the U.S. to hold at least 5% of all bitcoin, mirroring the country’s gold holdings. “Having a strategic reserve is the ultimate way of having geopolitical advantage,” she said, even noting that the idea has support from several high-ranking military officials.
Vice President JD Vance echoed that sentiment at the same conference, declaring, “Bitcoin will become a strategically important asset for the United States over the next decade.”
The U.S. isn’t alone in recognizing bitcoin’s strategic importance. Earlier this year, it was revealed that Abu Dhabi’s sovereign wealth fund—one of the largest in the world—had purchased over $500 million worth of bitcoin. At the same conference where Lummis and Vice President JD Vance spoke, Pakistan announced the creation of a national bitcoin reserve and committed 2,000 megawatts of electricity to bitcoin mining operations, aiming to become a major player in the global crypto economy. Just last week, reform UK leader Nigel Farage introduced a “Cryptocurrency and Digital Finance Bill” that proposes a national bitcoin reserve and a 10% capital gains tax on crypto, part of a broader plan to position London as a leading hub for digital assets.
While the BITCOIN Act still faces a legislative gauntlet, its growing momentum marks a pivotal shift in how the U.S. government views digital assets. The idea of a global race to accumulate bitcoin is no longer hypothetical—it’s unfolding in real time. Whether the United States chooses to lead or follow in that race could have lasting consequences for its financial future and strategic position in the world for decades to come.
That which we call QE by any other name…
We’ve said it before, and we’ll say it again: the U.S. government is in a structural debt spiral. Trillion-dollar deficits have become the norm, not the exception. Interest payments are exploding. Foreign appetite for Treasuries is waning. And the only viable path left is increasingly aggressive currency debasement. Like death, taxes, and terrible reality TV—it’s inevitable.
But here’s the catch: the Fed is reluctant to just fire up the money printer again. At least, not officially.
If the Fed announced a new round of Quantitative Easing (QE) tomorrow, the backlash would be immediate. Conservatives would accuse it of enabling fiscal recklessness. Progressives would argue it’s just another gift to Wall Street, juicing asset prices and exacerbating inequality. And with inflation still elevated, it would likely send bond yields soaring, tank the dollar, and reignite inflation fears. After two years of hawkish rhetoric, a sudden QE pivot would torch the Fed’s credibility and raise fresh doubts about its independence.
So how do you do QE… without calling it QE?
Enter the Supplemental Leverage Ratio (SLR).
The SLR might sound like a dry, technical bit of post-crisis regulation—and it is—but don’t let that fool you. It’s quietly becoming one of the most consequential levers in U.S. monetary policy.
Introduced under Basel III, the rule requires banks to maintain a minimum amount of capital relative to their total assets. That might sound prudent. In theory, it’s about keeping banks safe and avoiding another financial meltdown. But in practice, the SLR creates a perverse incentive: it treats all assets equally including “risk-free” U.S. Treasuries.
This means banks are penalized for holding Treasuries the same way they are for making subprime loans or leveraged bets. The result? Banks avoid Treasuries, despite their safety and liquidity, because they don’t want to eat up valuable balance sheet space.
This incentive structure often clashes with both monetary policy goals and real-world market conditions. A vivid example came during the COVID crash in March 2020, when the SLR contributed to dysfunction in the Treasury market. Because the rule treats all assets the same—regardless of risk—it discouraged banks from holding Treasuries and limited their ability to act as liquidity providers when markets were under stress. As a result, the SLR contributed to the breakdown in the bond market, forcing the Fed to step in with a $5 trillion rescue package and a temporary SLR exemption. By injecting liquidity and removing Treasuries from the leverage calculation, the Fed stabilized markets—but that exemption quietly expired in 2021 under political pressure. The core problem with the SLR, however, was never addressed.
Fast forward to today, and the SLR is once again at odds with economic reality. The Treasury is issuing debt at a record pace, just as foreign buyers—particularly China and Japan—are pulling back. Ideally U.S. banks would step in pick up the slack. But the SLR stands in their way because every new Treasury bond counts against their balance sheets under the current leverage rules. In effect, the SLR isn’t just regulating bank balance sheets—it’s quietly limiting how much debt the U.S. government can realistically issue and expect the private sector to absorb.
That’s why there’s a growing drumbeat in policy circles to remove Treasuries from the SLR. It’s not QE, they’ll say. It’s just a “technical adjustment.” But make no mistake—this is QE in disguise.
If Treasuries are exempted from the SLR, banks will suddenly have the green light to load up on government debt—without needing to raise additional capital. That means they could ramp up Treasury purchases without crowding out other lending. That expands their balance sheet capacity, frees up liquidity, and allows them to lend more across the board.
No, the Fed won’t be buying bonds directly. But if reforming the SLR results in hundreds of billions of new bank-driven Treasury purchases, it’s printing in all but name and the effect will be nearly identical: credit expansion, asset price inflation, and more money sloshing through the financial system. The mechanism is different. The outcome is the same.
And what thrives in an environment of unchecked liquidity expansion? You guessed it—bitcoin.
As we’ve outlined in previous editions, bitcoin’s value proposition grows stronger as fiat credibility weakens. In a world where monetary restraint is optional and inflationary loopholes are institutionalized; bitcoin offers something radically different: a fixed supply.
Regardless if the Fed openly prints more money or finds creative ways to inject liquidity through regulatory backdoors like the SLR—the end result still debases the currency and drives capital into harder assets.
In that environment, bitcoin’s value proposition grows stronger. It’s not just a bet on technology or ideology—it’s insurance against a monetary system that keeps finding new ways to inflate the supply of dollars while pretending not to.
So, if the SLR reform goes through, expect muted headlines. But don’t be surprised when bitcoin keeps climbing. The capital flight from fiat is already underway. And the next leg may be fueled not by central bankers, but by regulators in the fine print.
In Other News
Trump Media establishes a corporate bitcoin treasury with a $2.5 billion offering.
GameStop is now the latest company to add bitcoin to its treasury after buying over $500 million worth of BTC.
US Labor Department withdraws 2022 warning against crypto in 401(k)s, clearing path for bitcoin in retirement plans.
Pakistan to establish a Bitcoin Strategic Reserve and allocate 2000 megawatts of energy for crypto mining.
JPMorgan to accept bitcoin & crypto ETFs as loan collateral.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital or Onramp Invest.
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