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Performance Update February

Dear Clients and Partners,

Tensions remain high as the Ukraine/Russia conflict continues while dark skies are brewing over the Chinese economy led by the fears surrounding the sustainability of their real estate sector. US President Biden signed an executive order kicking federal agencies into gear to implement a strategy of more regulatory clarity on blockchain/crypto. The city of Lugano, in southern Switzerland, took a step closer to pushing the acceptance of crypto for payments of all goods and services by partnering with Tether. During the month of February, Bitcoin (BTC) was up by 8.37% (spiking +15% on the last day of the month), and the Bloomberg Galaxy Crypto Index (BGCI) was up 3.99%.

For February 2022, we were down by -7.15%. Since inception we have outperformed both BTC (by +15.42%) and BGCI (by +26.77%) while displaying strongly reduced volatility. We remain prudent and strategic in consistently allocating capital towards high conviction topics to be well positioned to participate in the long term growth of this sector. Given our experience in this industry we are also aware that at times short term pains must be endured for long term gains.

A factor that has led to this month's result was that operating a fund of funds, we face the challenge of our underlying investments issuing their NAVs/price update with differing frequencies, e.g. from daily to monthly with delays up to 4-5 weeks. This has led to, as one example, one investment’s negative performance during the volatile month of January being realized only now, while positive February results from a newer investment are yet to be accounted for.

We are working with the involved stakeholders to improve this flow of information as much as possible, but we will always face these difficulties to a certain extent.

Have a great day and feel free to let us know if you have any questions.

Marc S. on behalf of Frank, Dirk, and Marc B.

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