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

The dips are where the money is made…

Volatility is a feature of the asset class, not a flaw.

The fund's performance this past month was down -18.6% (after fees). The fund has a positive annualized return of +5.77% since the fund launched in August 2023.

Despite recent turbulence, we have deliberately maintained a bullish stance. Here’s why we believe the market is poised for a strong finish to the year:

1. Potential Rate Cuts: A Boost for Crypto?
With a potential rate cut on the horizon this month, we may see a favorable shift for crypto markets. Lower interest rates typically lead to increased liquidity and risk appetite, which could fuel a fresh wave of investment in digital assets.

2. Political Climate Turning Pro-Crypto
As the U.S. presidential election approaches, the political landscape appears increasingly favorable for crypto. Both Donald Trump’s pro-crypto stance and Kamala Harris’s more positive outlook suggest potential regulatory support. This could ease compliance burdens and open the door to wider adoption.

3. Institutional Adoption Gathers Pace
The recent launch of Bitcoin and Ethereum ETFs is a strong signal of growing institutional interest. These financial products make it easier for traditional investors to gain exposure to digital assets, potentially driving more capital into the market and creating upward momentum.

If you’re an accredited investor and you’d like to go review your current crypto portfolio and strategy click here to hop on a call with me to discuss.

A significant development that hasn't received much attention is the impending $16 billion repayment from FTX, with $12 billion in cash set to be distributed to creditors. Many of these recipients are expected to reinvest their funds into the market, potentially sparking a new wave of buying power and providing additional liquidity.

Goldman Sachs, a 150-year-old financial institution, is reportedly planning to launch three tokenization projects by the end of the year, according to a report from Fortune. While details are limited, we know one project will target the U.S. fund sector, another will focus on European debt markets, and a third will create marketplaces for tokenized assets. This move by a major player underscores the growing trend of institutional adoption.

The U.S. Dollar Index (DXY) has been in decline for several months and is now sitting on a critical support level. If this level breaks, it could be extremely bullish for crypto assets, as a weaker dollar often correlates with increased demand for alternative stores of value like Bitcoin and Ethereum.

Recent bearish factors, including the Mt. Gox Bitcoin sell-off, Germany’s Bitcoin dumping, actions by Jump Trading, recession fears, and geopolitical tensions, have largely cooled down. As these catalysts diminish, we see the market stabilizing, setting the stage for a potential rebound.

Our fund holds 100 positions across 26 blockchains, representing what we believe is the top 1% of over 10,000 crypto tokens.

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.

~84% of all assets are secured via cold storage, the industry’s highest standard for keeping assets safe. The other 15% of fund assets are on Kraken, known for its robust security standards.

Talk soon,
Mike Klein
Digital Wealth Insider

If you find this newsletter insightful, consider sharing it with friends and colleagues who might benefit from our updates and perspectives. https://newsletter.digitalwealthinsider.com/

_{Disclaimer: The information in this newsletter is for general informational purposes only and is not financial or investment advice. All investments involve risk, including the loss of principal. Past performance is not indicative of future results. Consult with a professional before making any investment decisions. Digital Wealth Insider is not responsible for any losses or damages from the use of this information.}