DAFM

Category: Australian Domiciled Investors

In the first week of February, Bitcoin (BTC) fell by more than 30%. Most of that decline occurred on 5 February, making it one of the fastest declines on record.   This drop was mainly caused by broader market pressures driven by a reduction in leverage, rather than a full panic sell-off. Liquidations in the futures market were around average levels during this time. After this sharp and busy start, activity slowed down significantly. Although BTC’s price fell, volatility was lower than in previous bear markets. For the rest of the month, there were very few opportunities to supplement the very low yields on offer.  
Cryptocurrency markets started the year strongly, rallying steadily through the first half of January with Bitcoin (BTC) just short of the $100,000 USD mark mid month. Sentiment then deteriorated in line with broader macroeconomic concerns. Risk-off trades put downward pressure on crypto prices through the remainder of the month. This culminated in a sharp fall in BTC at the end of January, with liquidations pushing a shaky market towards 12-month lows. The trading desk saw limited opportunities to build on stubbornly low yields.
The Digital Income Class (the Fund) rose 0.08% over the month of December, bringing its 12-month performance to14.64% net of fees. Trading opportunities were limited due to the quiet end to the year in cryptocurrency markets. However, low market yields still allowed the Fund to generate a small positive return.
November was volatile for cryptocurrency markets. Bitcoin fell from above US$100,000 to just over US$80,000 before recovering to around US$90,000. The decline reflected ongoing market caution from October’s tariff news and higher-than-expected U.S. inflation, which pushed investors toward safer assets.
October’s trading opportunities capitalised on the volatility driven by the US and China events on 10 October. The largest single day return of the year again demonstrated the value of our market neutral approach and proprietary trading systems. The Fund consolidated profits through the rest of the month, delivering strong consistent performance.
DigitalX ASX Announcement "DigitalX board has resolved to allocated approximately A$4.96 million into the Lime Street Capital SPC fund, run by Australian manager Digital Asset Funds Management (DAFM), which is expected to generate significant free cash flows based on the Fund's historical performance."
Early September saw headline cryptocurrency Bitcoin (BTC) consolidate from its decline in August. Although BTC failed to find any solid momentum in September, late in the month, U.S. dollar weakness saw crypto assets start to move higher again.
Bitcoin set a new all-time high in August, trading above US$124,000 for the first time. Positive sentiment was driven by increased institutional backing and further U.S. regulatory support, notably easing rules around holding cryptocurrency in retirement accounts. The new high in BTC found strong resistance, and profit-taking saw prices settle around $108,000 by month-end.
Montgomery Investment Management (Montgomery) is pleased to announce an exclusive partnership with Sydney’s Digital Asset Funds Management (DAFM), introducing a unique opportunity for Australian investors beyond traditional assets and strategies.
Similar to the equity market, the crypto market is pricing in further interest rate cuts from the Fed and many developed market central banks. Positive U.S. regulatory momentum continues to build for crypto. The GENIUS Act was enacted by U.S. President Trump on July 18, and new SEC Chair Atkins announced plans for major regulatory reforms on cryptocurrencies at month close.