DigitalX Monthly Crypto Update

Market Commentary

April 2025 saw a strong resurgence in digital asset markets, led by a rebound in Bitcoin and increasing investor confidence in next-generation blockchain ecosystems such as Solana. The DigitalX Bitcoin Fund returned 12.64% after fees, outperforming both the All Ordinaries Index’s (3.6% gain) and AUD gold’s (4.1% gain).

A significant highlight this month was the continued decoupling of Bitcoin from traditional markets. While the Nasdaq rose moderately (+1.5%) and S&P 500 fell (-0.8%), Bitcoin appreciated by 12.6%  (USD). This divergence further supports Bitcoin’s position as a non-correlated digital store of value, particularly amid persistent macroeconomic volatility.

However, the standout structural shift has been the strengthening of investor focus on Solana, which has emerged as one of the most performant and capital-efficient blockchain networks. With its high throughput and developer adoption, Solana is increasingly seen as a foundation layer for real-world blockchain applications. DigitalX has been strategically building its Solana position, reflecting conviction in the protocol’s long-term potential and revenue-generating capabilities through staking.

Regulatory momentum for cryptocurrency in the U.S. remains strong. Paul Atkins, who is known for his pro-crypto stance, was officially appointed as Chairman of the SEC. In his first public remarks at the agency’s Crypto Task Force roundtable, he acknowledged that previous SEC ambiguity had suppressed innovation in the sector, and emphasised the need for clear, actionable guidelines, particularly concerning custody of digital assets. His leadership is expected to usher in a more constructive regulatory framework for institutional participation in crypto markets in the U.S.

On the corporate adoption front, institutional demand for digital assets also rose. Strategy’s BTC holdings increased to 553,555 BTC, while a major new entrant, 21 Capital – backed by Tether, Bitfinex, and SoftBank, was announced with 42,000 BTC in initial treasury assets. This positions 21 Capital as the third-largest corporate Bitcoin holder globally. Tether contributed $1.5 billion in BTC, while Bitfinex and SoftBank added $600 million and $900 million, respectively. The group also secured $585 million in additional funding through a mix of convertible notes and equity. While Bitcoin remains the dominant reserve asset, Layer 1 ecosystems like Solana are increasingly being viewed as complementary yield-generating allocations in institutional portfolios.

Internationally, nation-state adoption advanced incrementally. In the U.S., Arizona’s proposed Bitcoin reserve bill successfully passed the legislature but was ultimately vetoed by the governor, delaying the possibility of Bitcoin-backed state reserves. Internationally, Pakistan unveiled a national Bitcoin mining initiative, aiming to monetise excess electricity by powering mining farms and AI data centres. Binance founder Changpeng “CZ” Zhao was appointed as an advisor to Pakistan’s Crypto Council, which was established in March to oversee the adoption of blockchain technology and digital assets.

DigitalX remains strategically positioned across both Bitcoin and high-conviction Layer 1 assets such as Solana, aligning with institutional trends favouring diversified exposure and on-chain yield. As regulatory clarity improves and infrastructure matures, we expect continued tailwinds for staking revenue and ecosystem participation.

Disclaimer

DigitalX Asset Management Pty Ltd ACN 629 653 121 (DigitalX) is a corporate authorised representative (CAR) (CAR Number 1270748) of Boutique Capital Pty Ltd ACN 621 697 621 (Boutique Capital) AFSL 508011.

This document contains general advice only and has been prepared by DigitalX for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth).

The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information.

The investment summarised in this document is subject to known and unknown risks, some of which are beyond the control of DigitalX and their directors, employees, advisers or agents. DigitalX does not guarantee any particular rate of return or the performance of the Fund, nor does DigitalX and its directors personally guarantee the repayment of capital or any particular tax treatment. Past performance is not indicative of future performance.

The materials contained herein represent a general summary of DigitalX’s current portfolio construction approach. DigitalX is not constrained with respect to any investment decision making methodologies and may vary from them materially at its sole discretion and without prior notice to investors. Depending on market conditions and trends, DigitalX may pursue. other objectives or strategies considered appropriate and in the best interest of portfolio performance.

There are risks involved in investing in the DigitalX’s strategy. All investments carry some level of risk, and there is typically a direct relationship between risk and return. We describe what steps we take to mitigate risk (where possible) in the Fund’s Information Memorandum. It is important to note that despite taking such steps, DigitalX cannot mitigate risk completely.

This document was prepared as a private communication to clients and is not intended for public circulation or publication or for the use of any third party, without the approval of DigitalX. Whilst this document is based on information from sources which DigitalX considers reliable, its accuracy and completeness cannot be guaranteed. Data is not necessarily audited or independently verified. Any opinions reflect DigitalX’s judgment at this date and are subject to change. DigitalX has no obligation to provide revised assessments in the event of changed circumstances. To the extent permitted by law, Boutique Capital, DigitalX and their directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions.

This document is for informational purposes only and is not a solicitation for units in the Fund. Application for units in the Fund can only be made via the Fund’s Information Memorandum and Application Form.