Multi-Strategy Fund Performance
The Fund ended September up 0.5%, navigating a volatile month for digital assets. Early gains were supported by expectations of Fed rate cuts and sustained institutional inflows, with Solana benefiting from large-scale allocations and optimism around potential U.S. spot ETF approvals. That momentum reversed towards the end of the month amid two cascading liquidation events that wiped out nearly $3 billion in leveraged positions. These sharp dislocations weighed on momentum (-0.3%) and arbitrage (-0.9%) strategies, which posted modest declines. However, we view this reset as constructive: speculative excess has been cleared, positioning is healthier, and the structural drivers of the asset class—rising global liquidity, monetary easing, expanding ETF access, and accelerating institutional adoption—remain firmly in place. With risks recalibrated, we believe the market enters Q4 on stronger footing and is well positioned for a constructive finish to 2025.
| Multi-Strategy Fund | Bitcoin | |
| September Gross Performance | 0.5% | 5.4% |
Market Commentary
September was an eventful month for the crypto markets — one that opened with optimism, delivered meaningful structural progress, and closed with a volatile but ultimately healthy reset.
The month began on a strong note. Softer U.S. jobs data reinforced expectations of a Federal Reserve rate cut, and digital assets rallied in step with broader risk markets. Solana led the charge, propelled by Forward’s $1.65 billion treasury deployment into SOL, alongside reports of an additional $4 billion raise. Pantera Capital’s $1.25 billion Solana-focused vehicle further underscored institutional demand, while anticipation of U.S. spot Solana ETF approvals (expected October 10) provided a clear near-term catalyst.
Momentum built through mid-September as multiple supportive themes converged. The crypto IPO window remained active: after Circle and Bullish earlier this year, both Gemini and Figure upsized their offerings amid strong demand, delivering solid trading debuts. Institutional accumulation continued as treasuries from Metaplanet ($632M), Strive ($675M), Strategy ($100M), and Capital B ($62M) added meaningful flows. Meanwhile, the U.S. House Appropriations Committee proposed that the Treasury explore a “Strategic Bitcoin Reserve” — a potentially historic step toward sovereign-level adoption. Against this backdrop, the Fed delivered a dovish 25 bp cut on September 17 and signaled room for more easing, reinforcing a macro environment supportive of crypto and risk assets more broadly.
But late September reminded investors of crypto’s volatility. Following bitcoin’s post-Fed rally above $117,000, markets fell into a sharp corrective phase consistent with the familiar “buy the rumor, sell the news” pattern. Two cascading liquidation events (September 22 and 25) wiped out nearly $3 billion in leveraged positions, driving bitcoin below $109,000 and ethereum under $4,000. The speed and concentration of the unwind amplified downside pressure and weighed on sentiment.
Importantly, on-chain data suggests this was not a capitulation event. Roughly 94% of liquidations were long positions — evidence of excessive leverage being flushed rather than a deterioration in fundamentals. Long-term holders remained resilient, reinforcing the view that September’s volatility was a deleveraging reset, not a regime change.
We believe this reset is constructive. Speculative excess has been cleared, leverage has normalized, and the market is now better positioned for sustainable inflows. The structural tailwinds that defined early September remain firmly in place: rising global liquidity, monetary easing, ETF momentum, institutional treasury allocations, and growing retirement-plan access. With speculative froth removed and long-term conviction intact, the market stands on firmer footing as we enter Q4.
Looking ahead, we see current conditions as a staging ground for renewed strength. With cleaner positioning, supportive macro trends, and continued institutional adoption, we remain optimistic that digital assets are poised to demonstrate resilience and deliver a constructive finish to 2025.
Sincerely,
The Blockforce Team
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.
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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