Monthly Manager Commentary: August 2025

Multi-Strategy Fund Performance

In August, the Fund delivered a strong return of +6.4%, significantly outperforming bitcoin, which declined -6.5% over the month. This outperformance was driven primarily by Ethereum’s exceptional performance (+28%), as capital continued to rotate from BTC into ETH amid record growth in stablecoins and real-world assets (RWAs), reinforcing Ethereum’s position as a critical infrastructure layer. Additionally, our trading algorithms proved highly effective in navigating one of the most volatile months in recent memory, allowing us to capture upside while managing risk prudently. Looking ahead, structural tailwinds—including rate cuts, accelerating M2 growth, and growing treasury accumulation of digital assets—create favorable conditions for what we believe will be a compelling finish to the year.

	Multi-Strategy Fund	Bitcoin
August Gross Performance	6.4%	-6.5%

Market Commentary

August—typically a quieter month for digital assets—delivered one of the most volatile and event-driven periods in recent memory.

The month began with a pullback following July’s late rally, as President Trump’s executive order on reciprocal tariffs weighed on broader risk sentiment. A weaker U.S. jobs report compounded caution, sparking modest declines across crypto to start the month.

Momentum then shifted sharply mid-month. Bitcoin climbed from early August lows near $112,000 to a new all-time high of $124,000, while ETH broke above $4,600, its highest level since late 2021, on the back of persistent ETF inflows totaling nearly $2.9 billion. Altcoins joined the rally—Aerodrome (AERO) surged 36% after news of a Coinbase integration, underscoring investor appetite for on-chain utility.

But the upswing was short-lived. On August 18, fading expectations for a Fed rate cut triggered a sharp sell-off, leading to $270 million in liquidations, concentrated in BTC and ETH longs.

The reversal a few days later was equally dramatic. At the Jackson Hole Symposium, Fed Chair Powell signaled readiness to cut rates as soon as September, and markets responded decisively. Ethereum surged nearly 15%, while DeFi tokens broadly outperformed. The driving force behind this move is yield: as traditional interest rates decline, crypto spreads widen, attracting more capital on-chain. DeFi protocols benefit directly from lower borrowing costs and increased liquidity, making these tokens natural beneficiaries of a dovish Fed stance.

The final week brought yet another shock. On August 25, a large whale sell order cascaded into over $600 million in liquidations, dragging bitcoin back toward $112,000. By month-end, Bitcoin closed around $109,000 (–12% from its peak), while Ethereum finished at $4,500, up 28% on the month.

The sharp swings of August ultimately revealed two clear themes for investors.

First, after years of underperformance, Ethereum is having a moment of recognition in the wider market. ETH set a new all-time high of $4,945 before consolidating in the $4,300–$4,600 range. Institutional capital continues to rotate from BTC into ETH, reinforcing its role as a core infrastructure layer. Stablecoin supply on Ethereum has now reached $143 billion, while tokenized real-world assets have grown into a $7.6 billion market—marking a structural shift away from speculative tokens and toward utility-driven value. Bitcoin’s dominance dropped from 62% in June to 54% by the end of August, underscoring Ethereum’s rising share of the digital asset ecosystem.

Second, volatility has returned in force. August delivered a full cycle of rallies, corrections, liquidations, and recoveries—all within a single month. This renewed turbulence highlights the early stages of a potential “altseason,” as investors increasingly allocate beyond bitcoin in search of yield, growth, and differentiated utility. Ethereum has emerged as the market’s core infrastructure play, bitcoin continues to anchor digital assets as a store of value, and institutional capital is increasingly rotating into DeFi and other select altcoin tokens.

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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