Monthly Manager Commentary: April 2025

Multi-Strategy Fund Performance

The Fund had its strongest month so far this year, gaining 15.7% and outperforming bitcoin in April. The fund’s outperformance was driven by strategic exposures to Solana (SOL), which appreciated 19%, Sui (SUI) with a notable 52% gain, and Raydium (RAY), which surged 61%. Crypto markets broadly rebounded after two months of consolidation, showing early signs of decoupling from traditional risk assets—a dynamic frequently observed in the aftermath of major geopolitical developments. The market’s growing recognition of crypto’s value proposition amid heightened geopolitical uncertainty is an encouraging signal for the asset class as we look ahead to the remainder of 2025.

	Multi-Strategy Fund	Bitcoin
April Gross Performance	15.7%	14.1%

Engineering Insights and Updates

This month, our engineering and research teams made substantial progress in strengthening the performance and resilience of our quantitative strategies, particularly in the face of ongoing volatility in crypto markets. A key focus was the continued refinement of our machine learning-driven optimization framework. We expanded the use of Bayesian optimization, a technique that efficiently identifies the best configuration of strategy parameters by learning from historical data. Compared to more traditional trial-and-error approaches, this method significantly reduces computational demands while improving accuracy and adaptability.

To further streamline model development, we deepened our integration of asynchronous successive halving. This technique helps us allocate computational resources more effectively by identifying and discontinuing underperforming models early in the process, allowing us to concentrate effort on the most promising candidates.

We also introduced two proprietary techniques to improve multi-objective optimization—our process for balancing return and risk across a portfolio of strategies. The first, Hypervolume Contribution, measures the unique value a strategy adds to the overall set of efficient trade-offs, allowing us to emphasize configurations that bring the greatest diversification benefits. The second, Hull Point Analysis, uses advanced geometric modeling to identify strategies that lie on the most efficient edge of the risk-return spectrum. This ensures we prioritize allocations that offer balanced, stable performance—especially important during market regimes where chasing high returns may expose portfolios to unnecessary risk.

Finally, we upgraded our internal simulation infrastructure to support faster, large-scale testing of varied strategies in parallel. This improvement shortens development cycles and allows us to more quickly adapt to changing market dynamics. Together, these advancements reflect our ongoing commitment to delivering resilient, data-driven strategies that are carefully calibrated to the complex and fast-moving nature of digital asset markets.

Market Commentary

April opened with a sharp wave of investor uncertainty following the Trump administration’s April 2 announcement of new tariffs, which sparked a broad market selloff and heightened concerns about the global economic outlook. Bitcoin and Ethereum, along with most traditional assets, initially declined as investors moved to de-risk portfolios and raise liquidity. However, crypto markets quickly stabilized and went on to post three consecutive weeks of gains to close the month firmly higher.

As we’ve observed during previous macro disruptions—whether the 2020 pandemic, the 2022 invasion of Ukraine, or the 2023 regional banking crisis—bitcoin’s unique structural attributes tend to emerge more prominently under pressure. Its decentralized architecture, resistance to political interference, and absence of counterparty risk continue to differentiate it from traditional assets. As was the case in those earlier episodes, bitcoin’s initial decline alongside equities was quickly followed by a decoupling and outperformance, reinforcing its potential as a systemic hedge in times of uncertainty.

As the month wore on, the divergence between digital assets and traditional markets became evident. While equities remained under pressure, bitcoin rallied to $95,000—a move driven by several converging factors, including robust inflows into spot Bitcoin ETFs, renewed accumulation by long-term holders, and a shift in sentiment surrounding global trade dynamics. The ETF market in particular offered a notable signal of institutional appetite, with $2.7 billion in net inflows during one week alone—the third-highest weekly figure since inception—highlighting growing confidence among large capital allocators in bitcoin’s role as a hedge to global uncertainty.

Bitcoin has now firmly outperformed traditional risk assets year-to-date, posting positive returns while the S&P 500 remains down 7%. Perhaps more notably, it has also appreciated significantly against gold over the last month, suggesting that bitcoin is increasingly being perceived as a store of value in its own right rather than merely a speculative asset correlated with tech stocks or broader risk sentiment.

Supporting this constructive narrative, on-chain data indicates a consistent pattern of renewed accumulation by long-term bitcoin holders since late February. While such behavior does not necessarily catalyze immediate price appreciation, it reflects growing conviction among patient capital that current valuations represent compelling entry points. This return of structurally committed investors suggests a more durable price foundation may be forming.

Although macro conditions remain fluid—particularly in light of escalating U.S.-China trade tensions—the signals emerging from both market price action and investor behavior suggest a meaningful evolution in how bitcoin is being understood and valued. Increasingly, it is behaving less like a high-beta risk asset and more like an independent, digital store of value. In our view, this transition highlights bitcoin’s maturing role within the global financial ecosystem and reinforces a constructive long-term outlook for the broader crypto asset class.

Looking ahead, we remain optimistic about the trajectory of the crypto market through the remainder of 2025. Bitcoin’s recent performance, in particular, may well prove to be a defining moment—both in terms of investor perception and in its growing integration into mainstream portfolios.

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.

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