coinIX COINVEST Update: March 2025

Market Update

After the significant correction in February, the crypto market was volatile in March. The total market capitalization fluctuated between USD 2.56 trillion and USD 3.15 trillion, ending the month slightly lower at USD 2.67 trillion. Bitcoin temporarily dropped to a monthly low of USD 77,500 but managed to stabilize and closed the month at USD 82,500. Bitcoin’s market dominance remained high at 61% and continued to trend upward.

Markets reacted sensitively to macroeconomic factors, especially the ongoing uncertainty regarding U.S. interest rate policy and new regulatory developments in the EU. Additional pressure came from the hack of leading crypto exchange Bybit, in which ETH worth over USD 1.2 billion was stolen. To handle the rush of withdrawal requests, other exchanges stepped in to temporarily provide Bybit with the necessary crypto assets.

Price Development

The fund’s share price corrected from €150 to €119 in March (-21%). Our largest position, Ethereum, has been the main contributor to the fund’s recent losses. Additionally, there were notable declines in March for GRT (-26%), ENS (-26%), and MKR (-19%). On a positive note, our position in FXS performed well, posting a gain of over 20% and now accounting for nearly 4% of the fund’s volume. Staking rewards totaling €6,500 were generated and directly added to the fund’s volume.

Portfolio Adjustments

In March, the positions in LINK, ENA, and Virtuals were further expanded. Virtuals Protocol is a token in the AI sector, where the underlying protocol enables the creation and management of autonomous AI agents. The VIRTUAL token allows the trading of AI agents within the protocol and is positioned within the Base ecosystem.

Top 10 Active positions

Fund Overview

The coinIX COINVEST SCI1 is an open special AIF (Alternative Investment Fund) managed by coinIX Capital GmbH, based in Hamburg. It invests in crypto assets traded on marketplaces. Up to 60% of the fund can be invested in individual assets, while up to 50% can be allocated to less volatile crypto assets, such as stablecoins. The goal is to build a portfolio of 15 to 25 positions without the use of leverage or hedging instruments.

The fund is only for professional or semi-professional investors and may not be marketed to retail investors. The investment terms as of March 18, 2024, are valid for participation in this fund. This fund is suitable only for investors seeking a high-risk investment, given the high volatility of crypto assets and the additional risks associated with investing in them. Investors should be aware that a total loss of the invested capital is possible. There is no liability beyond the invested capital. Subscription to fund shares is available only to professional or semi-professional investors.

Crypto assets have shown significant value appreciation in the past for long-term investors, despite high volatility. Their correlation with stock markets has generally been low. The fund offers risk-tolerant investors the opportunity to participate in the potential of this asset class.

Risks

Asset Class Risk: The fund is exposed to risks related to a decline in acceptance and changing volatility in the crypto asset markets, as it is predominantly invested in crypto assets.

Portfolio Allocation Risk: There is no guarantee that the investment manager will successfully select appropriate strategies, investment funds, or asset managers, or that these entities will be successful in implementing their investment strategies.

Lack of Operational History Risk: The company and the fund were established only in 2022. There is no assurance that the company, the fund, or any portfolio within it will achieve its investment objectives.

Digital Assets Custody Risk: The custody of crypto assets is partly managed by an external custodian and partly through self-custody. Custody of digital assets presents a risk to the company.

Counterparty Risk: The investment manager may buy and sell instruments on exchanges or other trading platforms, which carries the risk that a counterparty may fail to settle a transaction according to its terms, potentially leading to losses for the fund.

Regulatory Risk: The regulation of digital assets and related products is continually evolving. Regulatory changes may affect the nature of an investment in the fund or the ability of the fund to continue its operations.

Fraud Risk: The company and the fund are exposed to the risk of fraud by third-party service providers or by the company’s own officers or employees.

Cybersecurity Risk: A cybersecurity breach could lead to the loss or theft of funds, inability to access IT systems (Denial of Service), theft of protected information or company data, or costs associated with system repairs.

Funding Liquidity Risk: If investors redeem their investments in the fund, the company or the fund may need to liquidate additional assets to cover the redemption costs.

Staking Risk: Crypto assets may be used to participate in the operation of the respective blockchain (staking). There is a risk that staked crypto assets may be less liquid, and penalties may be incurred for rule violations.

Cross-Class Liability Risk: If more than one class is issued for a particular fund portfolio, holders of these classes may be required to cover liabilities related to other classes of that fund portfolio.

Business Dependence on Key Individuals Risk: The success of the fund relies heavily on the expertise of key personnel at the company and its manager, who make investments on behalf of the fund. A future loss of their services could negatively impact the performance of the company, the fund, and the portfolios.

Fees & Expenses Risk: The investment manager is authorized to incur all expenses deemed necessary or desirable on behalf of the company and the fund. Fees, allocations, and expenses incurred by the company and the fund could be significant and may dilute the returns achieved by investors.

Currency Risk: Shares are issued and redeemed in the currency applicable to the respective class. The underlying assets held by the fund may be denominated in other currencies. Changes in exchange rates could separately impact the gain or loss associated with the instruments held by the fund.

Tax Consideration Risk: Applicable tax laws, regulations, or interpretations may change at any time, potentially retroactively. Accordingly, it is possible that the company and/or the fund could be taxed on their investments and the income, profits, and gains derived from them in ways that are not currently foreseeable.

Volatility Risk: Crypto assets can be extremely volatile and may lead to unpredictable changes in the assets within the fund.

About coinIX Capital GmbH

Since 2017, coinIX Capital GmbH, headquartered in Hamburg, has been at the forefront of analyzing blockchain projects and cryptocurrencies, facilitating investments in this dynamic sector. Comprising specialists with extensive experience in asset management, venture capital, and cutting-edge technology analysis, the coinIX team manages a portfolio boasting over 20 investments in blockchain startups alongside crypto assets. Shares of coinIX GmbH & Co. KGaA are listed on the free market of the Düsseldorf Stock Exchange and are also traded on the Berlin and Munich stock exchanges.

About coinIX COINVEST SCI1

Launched in June 2022, coinIX COINVEST SCI1 is an open domestic special AIF under the KAGB. As a sub-portfolio of coinIX COINVEST Investment Stock Corporation with variable capital, its assets are managed by coinIX Capital GmbH, acting as a registered capital management company. Available for subscription by professional or semi-professional investors, the fund has the flexibility to invest up to 100% of its capital in crypto assets, aiming for a diversified portfolio of digital assets actively managed through ongoing selection processes. Additional income streams are generated through staking and other blockchain-native mechanisms. With the ISIN DE000A408Q55, subscriptions to the fund are only available directly through the investment company, with private investor acquisition prohibited.