The Turning Point
As the new year begins, the one thing that we can see with clarity is that this year will be a turning point for the digital asset industry. Now, for the first time in the history of crypto, we will have entrepreneurs, regulators and policymakers working together, determined to unblock the path to progress. As the crypto market reaches this historical turning point, we are very excited about the opportunities that lie ahead and feeling very positive about the digital asset allocation across all three of our funds.
Strategy is often about seeing the opportunity and positioning yourself early to maximize the potential of success. We believe Myrtle Nexgen’s portfolio of assets is exceptionally well positioned to ride the upcoming wave of growth and adoption that is expected across the crypto industry.
Market Highlights
Amidst the outcome of the 2024 United States Presidential Election, the crypto world experienced a boom in success and mainstream attention. Bitcoin (BTC) hit record prices multiple times in the weeks following the election which led to it exceeding an impressive $100,000 for the first time in its history. This is a crucial milestone that symbolizes the increasing importance of digital assets moving forward. While the market has pulled back in the past few weeks, there is reason for optimism as we move towards Spring. Analysts have high hopes that this calendar year has the potential to bring intense growth in digital asset valuations. This growth will be backed by unprecedented support on the administration and policy side which ensures the growth is sustainable in the long term.
The impending transfer of power is expected to levy a positive impact on the world of digital assets. Going into 2025, there have been a number of high-profile appointments that have gone to pro-crypto individuals. One of them is crypto advocate Paul Atkins taking over as SEC Chair. His appointment has spurred increased interest and action from the public as crypto continues to shift closer to the forefront of political and economic discourse. Stephan Miran has been selected to chair the Council of Economic Advisors (CEA), which works to advise the president on economic issues.1 Miran is a known bitcoin advocate, and his presence in such an elevated position will be shown as policy discourse shifts more and more to the pro-crypto side. To further the advancement of the incoming administration’s crypto agenda, David Sacks has been named, “AI and Crypto Czar”. Sacks has been an active member in the crypto world over the past decade.
Our Performance
As we move into the new year, and the optimism that surrounds the world of digital assets has continuously increased, we want to take a moment to reflect on the strong performance of our funds over the past two years. Our Blue-Chip fund has produced a strong 42% net rate of return in the past calendar year and an impressive 227% net rate of return over the past 24 months. Our Value fund has achieved a 77% and 340% net rate of return over that same time frame. This success is also exhibited by our Gaming & RWA fund which has posted an 89% and 263% net rate of return over a 12- and 24-month outlook respectively.
These strong metrics represent the stability each of our funds have held in the past couple of years. Those years were under significantly more challenging times for crypto than is expected in the coming months and years. It is also important to keep in mind that alternative coins exhibit the trends of BTC in the months following a big shift. Our funds feature large portions of alternative coins which has us eagerly anticipating their performance in early 2025.
Asset Highlights
While Bitcoin, Ethereum, and other mainstream assets dominate much of the discourse around crypto, we find it crucial to identify other assets that are on the rise and are poised to experience growth in the near future. XYO was a top performing asset in the closing period of 2024. It boasted an impressive 73.5% growth in price from November 15th to January 5th.
Other assets worth mentioning are Chainlink and GRT. They both experienced heavy growth at the end of 2024 and are expected to continue their progression into 2025. Chainlink exhibited an impressive 41.9% price increase for November 15th to January 5th.
Lastly, we want to highlight XRP as an asset due for a long-term successful run. It has shown a continued increase over the last 90 days, and we believe it to be in the early stages of its progression. We accumulated XRP well before its recent surge which is a testament to our process of determining future value in young assets, and we are eager to continue monitoring its growth.
