Multi-Strategy Fund Performance
In July, the Fund returned 18.4%, significantly outperforming bitcoin’s 8.0% gain for the month. This outperformance was driven by our high-conviction exposure to Ethereum (ETH), Sui (SUI), and Ethena (ENA), which were key beneficiaries of the shift in market leadership beyond bitcoin. Ethereum’s strength—fueled by accelerating ETF inflows, growing institutional adoption, and its central role in the evolving stablecoin and tokenization narrative—was a major contributor to performance. Additionally, our exposure to SUI and ENA captured upside from renewed investor appetite for scalable Layer 1 platforms and innovative stablecoin-related protocols, respectively. This combination of selective asset exposure and timely positioning enabled the Fund to capture asymmetric upside in a transitioning market.
| Multi-Strategy Fund | Bitcoin | |
| July Gross Performance | 18.4% | 8.0% |
Market Commentary
July was a pivotal month for the Fund, as we benefited from a structurally resilient and increasingly dynamic crypto market. Performance was driven by two key tailwinds: landmark regulatory developments in the U.S. and a clear rotation in market leadership from bitcoin to Ethereum and a select group of altcoins. This shift marks what may be the early innings of a broader capital rotation across the digital asset landscape—potentially signaling the onset of a new phase in the cycle often referred to as “altseason.”
From a regulatory standpoint, July delivered what may prove to be the most consequential policy month in U.S. crypto history. During “Crypto Week,” President Trump signed the GENIUS Act into law, creating the first federal regulatory framework for fiat-backed stablecoins. The legislation provides long-awaited clarity and is already catalyzing broader institutional interest in the $250B+ stablecoin market. In parallel, the House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act, a sweeping market structure bill that now moves to the Senate. Meanwhile, SEC Chair Paul Atkins formally launched “Project Crypto,” outlining the agency’s mission of establishing the U.S. as the global hub for digital assets. These steps culminated in the White House Crypto Report, a detailed policy roadmap covering stablecoins, decentralized finance (DeFi), taxation, and global competitiveness. Taken together, these actions represent a decisive shift from regulatory ambiguity to policy intent—and the market responded accordingly.
Bitcoin broke out of its previous trading range to reach a new all-time high of $123,000 on July 14. Importantly, this rally was not the result of news headlines or speculative excess but was driven by structural factors. On-chain data showed strong long-term holder dominance, shrinking exchange balances, controlled leverage in derivatives markets, and global monetary expansion—underpinning a move supported by deep conviction rather than speculative froth. Bitcoin’s realized market cap surpassed $1 trillion for the first time, a milestone that reflects sustained capital commitment at elevated prices. It also reinforces bitcoin’s growing role as a core global asset class, further bolstered by persistent demand from ETFs and institutional allocators.
Yet despite bitcoin’s strength, July ultimately belonged to Ethereum. ETH surged 49% over the month, supported by a confluence of fundamental and structural tailwinds. Most notably, Ethereum became a central theme for institutional capital, driven in large part by its deep integration into the stablecoin and tokenization narrative amplified by the GENIUS Act. Corporate treasury accumulation has accelerated, with several dedicated companies amassing over 733,000 ETH year-to-date, reflecting a level of institutional conviction not previously seen in the asset.
Further evidence of Ethereum’s institutional moment can be seen in ETF flows. BlackRock’s spot Ethereum ETF reached $10 billion in assets under management, becoming the third-fastest ETF in history to hit that milestone. More broadly, spot Ethereum ETFs recorded 20 consecutive days of net inflows by month-end, drawing in $5.4 billion during the streak and pushing total ETH ETF AUM to $21.5 billion. This was the first time Ethereum ETF flows have mirrored the scale and persistence previously observed in Bitcoin ETFs, suggesting a potential shift in investor perception. ETH is now being framed not merely as a tech bet, but increasingly as an institutional-grade asset with long-term viability. This sentiment is reflected across both traditional financial media and institutional capital flows, suggesting Ethereum may be emerging as the second cornerstone of institutional crypto exposure.
More broadly, the rotation from bitcoin into Ethereum and altcoins signals a potential new phase in the current crypto bull market. Historically, when capital begins to move further out on the risk curve, Ethereum and other large-cap altcoins tend to outperform. Altcoin spot volumes have surged—peaking at $44 billion in daily trading last week—and even surpassed bitcoin volumes on several days. Since April, the total altcoin market cap has nearly doubled, indicating a meaningful shift in investor appetite and risk tolerance. This marks a significant transition from the early-cycle dominance of bitcoin to a more diverse and expansive market leadership profile.
In summary, demand for both BTC and ETH is now consistently outpacing new issuance, driven by sustained ETF inflows and growing corporate treasury allocation. At the same time, stablecoin supply is rising, a sign of increased deployable capital—or “dry powder”—on the sidelines. With liquidity building and capital rotation already underway, the altcoin sector, which has largely lagged this cycle, appears poised to enter a more favorable phase. Taken together, these dynamics point to a market entering a structurally stronger and more broad-based growth period, providing an attractive backdrop for the Fund moving into the second half of the year.
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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