Digital Wealth Insider - Portfolio Update June ‘24

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

Follow our socials to see all the inside scoop on all the exciting things happening in the space: LinkedIN, Twitter, Instagram, TikTok and Youtube.

Fund Performance

The fund's performance this month was up approximately +10.2% (net of fees). The fund has an annualized return of 70% since the fund launched in August 2023.

Market Update and Strategic Insights

Despite Bitcoin reaching all-time highs, a closer look at the broader market reveals a different story for altcoins, which remain significantly below their peak levels. We have viewed this as a massive opportunity and continue to hold that view (see April update).

Retail is still not back, indicating that this bull market is likely just beginning

• Retail investors activity has historically been a key metric in signaling that a bull market is in full-force.

• Retail investor are just a third of their 2021 peak. This cautious atmosphere suggests that we are still early in this bull market, providing strategic opportunities for those poised to act before a broader re-entry.

• An additional key metric, search traffic for “crypto”, is still nearly at bear market levels.

  

Crypto Has Become a Major Political Topic

The political landscape around cryptocurrencies is heating up. Notably, former President Trump has expressed pro-crypto sentiments, making it a swing topic for the upcoming elections. Robert Kennedy Jr. has made it out to several crypto conferences (including speaking at Consensus 2024) and stands pro-crypto as well.

Political parties start to favor crypto in order to boost economic growth and innovation in US. There’s just too much to lose out on if the next Google’s and Amazon’s are forced to headquarter overseas.

I spoke about this a few weeks ago in the video below…

mikethecryptoguy

1,442 followers

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Meanwhile, the democrats have been a bit more reluctant to embrace crypto. President Biden recently vetoed a significant bill, and the U.S. House passed an anti-CBDC bill, signaling that crypto will remain a central issue in political discourse.

Wider Adoption by Major Financial Players Continues

• More ETFs, means more capital flowing towards crypto:

  • The approval of an Ethereum ETF, with a tentative launch date set by Bloomberg’s senior ETF analyst Eric Balchunas for no later than July 4th, further exemplifies the sector’s growing influence and institutional acceptance.

• PayPal has added a stablecoin ($PYUSD) on Solana

  • Both corporations and investors see the benefit in a multi-chain future. Crypto will most likely not be a “winner-take-all” sector, as was speculated in the past.

• Mastercard’s Crypto Credential: Mastercard has introduced a transformative feature called 'Crypto Credential', allowing users to transact in crypto using usernames instead of complex wallet addresses. (This is called Account Abstraction, read more below)

  • Mastercard’s innovation is set to streamline transactions, making digital currencies more accessible to a mainstream audience and potentially boosting market participation. More on this development.

Portfolio Highlights

Within the portfolio here are a few stand out performers:

• Uniswap ($UNI): Surged 52% this month, driven by the anticipation of a protocol upgrade to a revenue share model, this is a big deal because Uniswap generates ~$2M daily in fees and those fees would theoretically be passed on to token holders, driving up fundamental value to the token.

• Ethereum ($ETH): Climbed 20% following a court ruling that bolstered confidence in an upcoming ETF approval, illustrating the rapid pace of the crypto markets.

Free Money: Airdrops

The fund received approximately $21k (based on premarket valuations) in $EIGEN tokens at 0 cost for farming activities. We expect to receive over double that in the future.

Eigenlayer is a major player in restaking, below is a preview of the video interview with the Head Product Manager for Eigenlayer.

While we were already working on the airdrop before this meeting, conversations like this allow us to develop personal relationships with project leadership. These relationships enable us to better determine which positions we want to hold long-term.

mikethecryptoguy

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Fund Composition

The fund currently has 101 positions across 18 different blockchains.

Yield (interest awarded for various on-chain activities) is being generated from 39 unique protocols. Managing this breadth is time-intensive but crucial for mitigating risks and maximizing returns.

~79% of all assets are secured via cold-storage, the industry’s highest standard for keeping assets safe. The other 21% of fund assets are on Kraken, known for their robust security standards.

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

Austin, Consensus Conference Highlights

Our team had the exciting opportunity to attend Consensus 2024, where we nurtured relationships with key opinion leaders and investors.

We had the chance to interview 30 founders across AI, DePIN, Gaming, and RWA sectors. The overall tone of Consensus 2024 was significantly more positive than last year, charged with the excitement of a turnaround in crypto sentiment, political developments, and the anticipation of an ETH ETF. Everything we've mentioned in this newsletter was echoed at the event. Founders are excited about their progress, and the energy in the crypto community is back.

Thanks to our dedicated media team, we captured insights from some of the most influential projects in the space. Be sure to check out our media content to see these interviews.

Please make sure you check out our Podcast content at DigitalWealthInsider.com.

Follow our socials to see all the latest updates on what’s going on in the space: LinkedIN, Twitter, Instagram, TikTok and Youtube.