Newsletter April

Core Fund Update

April highlighted the resilience of Web3 amidst market fluctuations, showcasing major developments across the board. From the Bitcoin Halving to continued global advancements and on-chain activity, April’s price performance was not indicative of the underlying growth in the blockchain ecosystem. Despite records and global developments, the overall market has undergone a correction, and the Core Fund is currently registering a +7.17% return for this year. Join us as we delve into this month’s developments, analyze the trends driving the industry, and explore how these innovations are setting the stage for the future growth of the Core Fund.

Continued Strength in Global Developments

The approval of Bitcoin ETFs has not been limited to the US; Hong Kong also launched six spot Bitcoin and Ethereum ETFs at the end of April. This marks another milestone in the global regulatory landscape of the industry, offering Asian retail investors the ability to participate in the Web3 industry through regulated financial products. Global developments don’t stop at the launch of the Hong Kong ETFs. In fact, April saw strong activity across the web3 landscape. Here are just a few highlights:

• The market value of Treasury notes tokenized through public blockchains has surpassed $1 billion for the first time, representing a nearly tenfold increase since January 2023.
• The first-ever blockchain municipal bond was issued by JP Morgan.
• Crypto job openings surged by 30% month-over-month, showcasing continued institutional interest and growth within the industry
• Google has joined the Web3 party, allowing users to search for specific Web3 wallet addresses in the native search bar.
• Europe continues to show strong interest in Web3, with Germany’s largest state-backed lender, Landesbank Baden-Württemberg (LBBW), set to offer crypto custody services.

Bitcoin Halving – Supply Shock

On April 20, the Bitcoin network officially underwent its much-anticipated halving event. This event, which happens approximately every four years after every 210,000 blocks, slashes the reward for mining new blocks by half. The mechanism behind this process is designed to limit the supply of new bitcoins, ensuring that only 21 million will ever exist. The latest halving reduced the mining reward from 6.25 to 3.125 BTC, aiming to increase Bitcoin’s scarcity and theoretically boost its value if demand remains constant or rises. In the initial months following previous halvings, the market often consolidated or even experienced a temporary downward correction. However, historically, after this initial period, there was typically a significant rise in the price of Bitcoin. With this knowledge of past cycles in mind, we look forward to the coming months with optimism.

Turning The Attention To Alt Coins

Following the Bitcoin Halving, all eyes are on altcoins. While Bitcoin often experiences a significant price rise post-halving, historically, the broader Eeb3 market, particularly altcoins, tends to outperform Bitcoin. With this in mind, the Web3 industry is gearing up for what many are calling an “altcoin season.” Across the entire industry, there has been a significant increase in developments, with many Web3 companies taking advantage of the heightened capital inflow and validation of the overall industry.

Ethereum, the second-largest web3 project, has sustained impressive growth through April, capitalizing on the advancements brought by the Dencun upgrade. With its revenue tripling year-over-year in Q1 to reach over $1 billion and the number of network validators exceeding 1 million, Ethereum continues to lead the way for the industry. Bullish developments extend beyond on-chain metrics, with significant growth and institutional adoption continuing to expand globally.

Conclusion

In conclusion, April was marked with global developments, key events like the Bitcoin Halving and significant growth in alt-coins and Ethereum. Despite market fluctuations, the Core Fund managed its risks well, limiting losses compared to the broader market. With new regulatory approvals and growing institutional interest, the industry’s outlook remains strong as we continue into 2024. These developments strengthen confidence in a bright future for the Core Fund and the wider Web3 space moving forward.

With so much happening in the web3 industry, staying ahead of the curve is crucial. The Six Capital team is committed to proactive risk management, which has allowed us to mitigate risks effectively this month and continue to position the Core Fund as a go-to choice for investors seeking expert guidance on exposure to the exciting Web3 industry.

Reach out to get in touch with our experts and explore how the Core Fund’s strategies can work for you.

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