Monthly Update - June

June was MN Fund's most difficult month since inception. We want to address that directly rather than bury it in macro context. MN Fund closed June at -22.36% gross. Bitcoin fell approximately 19% in EUR terms. Ethereum fell 20%. Core holdings bore the brunt.

Here is what happened, and why we believe the portfolio is better positioned coming out of it than going in.

Three forces hit simultaneously

June was not a single event. It was a pile-up.

The month opened with the U.S.-Iran conflict still live and the Strait of Hormuz still closed. Bitcoin was already under pressure. Then on June 11, Trump announced a peace framework with Iran, oil fell, and markets rallied. Bitcoin briefly pushed back above $65,000. That relief lasted roughly a week.

On June 16, Kevin Warsh chaired his first FOMC meeting and delivered the opposite of what markets had priced in: no cuts, no easing bias, no dot plot guidance pointing toward relief. With CPI still running at 4.5%, the Fed removed its last projected rate cut from the board entirely. Bitcoin fell to $63,856 that session. The Fear and Greed Index closed at 21.

The third hit came from an unexpected direction. On June 1, Strategy disclosed it had sold Bitcoin for the first time since 2022, to fund dividends on its preferred stock. What followed was a slow-motion confidence crisis. Strategy's STRC instrument, marketed to retail investors as targeting a stable $100 par value, fell to $88.50 by June 17 and approximately $75 by month-end, a 25% depeg. With over $8.8 billion of STRC held by retail investors and Strategy's dividend obligations far exceeding its operating revenues, the depeg was not just a credit event. It removed one of the most reliable bid-side narratives in the Bitcoin market: the idea that Strategy would accumulate unconditionally. JPMorgan flagged the structural risk publicly. A securities investigation followed.

If you'd like to learn more about how MN Fund is positioned, you can request our factsheet or book an introductory call via mnfund.nl.

What we did

We rotated the core portfolio.

We deployed into Morpho, Ondo, and Plume. All three sit at the intersection of traditional finance and on-chain infrastructure, the part of the market where real institutional capital is actually moving.

Morpho closed a $175 million funding round in June, co-led by Paradigm, a16z, and Ribbit Capital, with Apollo Funds among the participants. It already powers lending infrastructure for Coinbase, Binance, Gemini, and Société Générale. $11 billion in deposits. The upcoming V2 upgrade introduces market-determined lending rates and fixed-term loan structures that resemble how institutional credit markets already work off-chain.

Ondo has completed live cross-border Treasury redemptions with JPMorgan, Mastercard, and Ripple, settling in under five seconds. It has tokenised BlackRock's IVV ETF and individual equities on Ethereum under a U.S. regulatory framework. Ondo Perps, its regulated perpetual futures platform for tokenised assets, crossed $1.5 billion in trading volume in its first weeks.

Plume holds a Bermuda Monetary Authority digital asset licence and U.S. SEC transfer-agent status, making it one of the few chains able to distribute genuinely regulated on-chain yield products. In June, Etherfi committed $100 million to a Plume RWA vault, channelling institutional capital into yield from BlackRock and Fidelity instruments on-chain.

The one piece of structural good news

The CLARITY Act was placed on the Senate Legislative Calendar on June 1, making it eligible for a full Senate floor vote for the first time. Treasury Secretary Bessent wrote a public op-ed demanding Congress act. The White House set a July 4 deadline. The bill has not passed yet, but its trajectory changed materially in June. For Morpho, Ondo, and Plume specifically, a clear regulatory framework is not a nice-to-have. It is the unlock that allows institutional distribution of their products to scale.

Fund Performance

MN Fund closed June at -22.36% gross, our most difficult month since inception. Bitcoin fell approximately 19% in EUR terms, Ethereum fell 20%, and the fund tracked that move closely. This was not a month where volatility trading could offset the damage: a sustained, directional move lower driven by three simultaneous macro shocks leaves little room for the oscillating price action that our systematic engine harvests best. When the market falls hard and stays down, core holdings determine the outcome. In June, they did.

Where we stand

June was hard. The drawdown was real and the causes were not all foreseeable. A peace deal that turned into a rate shock that turned into a corporate confidence crisis is not a sequence anyone modelled.

What we can control is portfolio composition and systematic execution. We made a deliberate change to both in June. NEAR and Ethereum remain our L1 anchors. Morpho, Ondo, and Plume are the new core. Volatility trading continues to run across the full portfolio.

The bear market has been the context for this fund's entire track record so far. We intend to come out of it with a portfolio that is positioned for what comes next.

As the market dynamics keep on changing fast, so will our approach.

If May's events raise questions about the fund's risk framework or positioning into Q2, we are happy to walk you through our thinking in more detail. Request our factsheet or schedule a call directly Calendly.

Past performance is not indicative of future results. This content is provided for informational purposes only and does not constitute investment advice or an offer to invest. Investing in digital assets involves significant risk, including the potential loss of capital.