Digital Wealth Insider Portfolio Update Mar ‘24

First and foremost, thank you for for your continued partnership on this investment journey. Your support is invaluable to us.

Fund Performance

The fund performance has been stellar this month, securing a 26.22% gain net of fees. This reflects a robust annualized return of 124.59% since the fund launch in August of 2023.

The February market rebound has been driven primarily by Bitcoin ($BTC, which currently makes up approximately 10% of the portfolio). It has been on a tear as the unique factors we discussed in our last investor update have settled and ETF inflows have remained strong.

Bitcoins rampant gain in attention signifies a continued strong broad market interest in the asset class, something we expect to continue. In short, last month we saw a buying opportunity, deployed our cash positions heavily, and this move paid off.

Portfolio Insights

Relative Valuation

At first glance, the prevailing sentiment among those fixated on Bitcoin (BTC) might suggest a market at its zenith, teeming with speculation and exuberance.

However, our analysis paints a different picture, one where the celebration is just beginning, particularly outside the BTC domain. Chains like Ethereum, and sectors including Decentralized Finance (DeFi), remain significantly below their historical peaks, hinting at untapped growth potential. This pattern, where BTC's rise precedes a ripple effect benefiting alt-coins, underscores a pivotal moment to reinforce our commitment to fundamentally solid projects.

We believe that now is the time to double down on fundamentally strong projects. Many are still far from their ATH(all time high) and we expect them to surpass their ATH during this bull cycle. Our portfolio is in perfect position to capture value accrual to these areas as we have been cost averaging into these position over the last 7 months.

Portfolio Highlights

The following projects are some standout performers:

• Uniswap ($UNI), part of our DeFi portfolio, is up 113% this month. As you may see from the table above, Uniswap is still 65% away from its ATH. The decentralized exchange’s performance can be attributed to news of a potential protocol upgrade that would resulting in revenue share to UNI token holder.
  See below to learn more about revenue share.

• Fetch.ai ($FET), part of our AI portfolio, is up 225% this month. The decentralized machine learning platform’s performance can be attributed to the release of its new DeltaV technology, a large language model (LLM)-based chatbot for performing tasks.

These examples—Uniswap's tokenomics enhancements and Fetch.ai's added protocol utility—illustrate the underlying strength and innovation within our portfolio's components. They highlight not just the resilience and potential for growth in these investments but also the broader, often under-appreciated opportunities present in the cryptocurrency market beyond Bitcoin.

See Fund Composition Insights Below:

Please visit the NAV LP Portal for access to your Investor Statements.

Thoughts on the Market

Navigate Through the Storm to New Heights

As the crypto market continues its resilient growth, it's vital to acknowledge that the journey to new peaks is naturally interspersed with dips. These downturns are not anomalies; they're inherent to the investment landscape.

We've emphasized this repeatedly: Dips are a part of the game. They should not be misconstrued as indicators of a faltering strategy but rather as the price of admission for long-term success. Such moments of sharp declines are opportunities to reinforce our commitment rather than question our path.

The graph below serves to illustrate the possible journey when investing in a volatile asset class like crypto, providing context that, despite the occurrence of sharp dips, our focus remains steadfast on the long-term appreciation of portfolio value.

ETH Denver ‘24

The team made it out to Denver, CO for the worlds biggest crypto conference: ETHDenver.

This conference is attended by close to 30,000 individuals and offer a plethora of opportunities to talk to leaders of major projects and discuss product roadmap initiatives, meet with other investors to compare sector insights, and to hear from NFT and meme coin enthusiasts how inevitable their success in speculation is (much to the dismay of those of us looking to invest instead of gambling).

What we walked away with were stronger relationships with project leaders, valuable and potentially lucrative insights into over 10 projects that are planning to do an airdrop or roll out additional token utility, and deeper learnings into emerging decentralized technology applications.

In short, we networked, we gained knowledge into how to participate in free money, and we got smarter about crypto applications.

In summary, Bitcoin's surge to peak levels marks just a fraction of the broader picture, as sectors such as DeFi haven't yet captured the market recognition they warrant. We expect this to change in the upcoming months, although we could be due for a pullback on the way there.

Announcement / Update

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