DigitalX Monthly Crypto Update

Market Commentary

May 2025 saw a rebound in investor sentiment as trade tensions eased. U.S.-China trade relations showed signs of thawing, Japan indicated a potential trade agreement conclusion as early as June, and President Trump’s proposed 50% tariff on European imports was delayed from June to July 9. These developments created a supportive macro backdrop, reflected in a broad-based rally across digital assets. Bitcoin and select altcoins appreciated meaningfully during the month. Price of Bitcoin and Solana to surge roughly 9.7% and 5.3% in April, closing around A$161,620 and A$243 on 30 May. 

Regulatory momentum in the U.S. continued to build. On May 5, U.S. House Committee on Financial Services Chairman French Hill and House Committee on Agriculture Chairman G.T. Thompson released a draft of a comprehensive crypto market structure bill. Later in the month, the U.S. Senate advanced and passed a bipartisan stablecoin bill that incorporated elements of the GENIUS Act. Bo Hines, Executive Director of the President’s Council of Advisors for Digital Assets, expressed confidence that both the stablecoin framework and broader market structure legislation could pass before the August congressional recess. 

Institutional adoption of digital assets accelerated in May. The U.S. Labor Department rescinded a 2022 Biden-era guidance urging employers to use “extreme care” when considering crypto and related investments. Bitcoin’s strategic relevance was further underscored at the Bitcoin 2025 Conference. Vice President JD Vance delivered a keynote address, and White House Crypto Czar David Sacks confirmed that Donald Trump’s crypto executive order permits government Bitcoin purchases if budget-neutral. Cantor Fitzgerald launched a US$2 billion Bitcoin lending program with the first facilities to Maple Finance and FalconX, further enabling institutional access to on-chain credit markets. JPMorgan Chase announced it would allow clients to buy Bitcoin, marking a significant shift in its stance towards digital assets. 

Corporate treasury adoption of digital assets gained significant momentum. Strategy notably increased its Bitcoin holdings to 580,250 BTC. Additionally, Strive Capital emerged as a major new player, announcing plans to raise $2 billion and merge with Asset Entities to establish the first Bitcoin treasury company, targeting a US$1 billion Bitcoin position. Trump Media & Technology unveiled plans to raise US$2.5 billion for the future purchase of Bitcoin. Interest in Layer 1 ecosystems is rising alongside Bitcoin. Solana, in particular, is being positioned in institutional portfolios as a yield-generating allocation. DeFi Development Corp. expanded its Solana holdings to 609,190 SOL with multiple purchases in May. Meanwhile, SOL Strategies filed a US$1 billion shelf prospectus to increase its investment in SOL and support further institutional access to the Solana ecosystem.

At the state level, New Hampshire and Arizona became the first and the second in the U.S. to pass legislation establishing a Strategic Bitcoin Reserve, marking policy support for Bitcoin adoption. Across the U.S., 19 states are currently considering similar initiatives or proposals to include Bitcoin in managed public funds after eight states rejected such measures.

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.

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