June 2026 | Crypto Fund No.1 Performance Brief

Report Date: July 3, 2026

Monthly Net Asset Value Return: -6.62%

Fund Strategy: Spot allocation of blue-chip cryptocurrencies + directional long swing trading

I. Monthly Performance Overview

Crypto Fund No.1 posted a monthly return of -6.62% in June 2026. The drawdown stemmed entirely from systematic market declines, with no material trading errors, concentrated-position blowouts, risk control failures or strategy missteps. Against the broad market index’s monthly slump of over 18%, the fund significantly outperformed the benchmark and demonstrated stronger downside resilience than most peer long-biased allocation funds.

II. Core Market Backdrop in June

1. Tightening macro liquidity: Markets repriced expectations of prolonged high Fed interest rates. The US Dollar strengthened, pressuring valuations across all risk asset classes.

2. Sustained institutional capital outflows: Spot ETFs recorded large-scale monthly net redemptions, and institutional liquidations dragged the overall market lower.

3. Broad-based unilateral selloff: Major cryptocurrencies suffered deep corrections, while mid and small-cap tokens fell even steeper. There were no rotational structural hotspots or safe-haven sectors.

4. Extreme bearish sentiment: Weak market absorption capacity triggered frequent stop-loss cascades, creating a hostile operating environment for all long-trend strategies.

Overall, June featured a beta-driven systematic bear market, and nearly all funds with long exposure suffered substantial drawdowns.

III. Breakdown of Loss Drivers

1. Primary driver: Systematic market downturn

The fund’s core positioning centers on spot long holdings and swing trend trades. It cannot fully insulate against broad market beta losses during unilateral bear runs, representing normal volatility inherent to the strategy’s market exposure.

2. Secondary driver: High-cost, low-efficacy hedging amid bear markets

Sharp, rapid price declines and spiking volatility in June drastically lifted hedging instrument costs. Inadequate intermittent hedging intensity limited further drawdown mitigation.

3. Relative performance strengths

The portfolio exclusively held blue-chip assets BTC and ETH, with zero altcoin exposure and no concentrated positions in high-risk tokens. Downside risks were contained to the fullest extent, resulting in a far milder drawdown than the market average.

IV. Operational Highlights & Areas for Improvement

Highlights

- Concentrated holdings in top-tier blue-chip coins, avoiding catastrophic crashes of small-cap assets;

- Proactive risk mitigation via position scaling down and reduced trading frequency amid falling prices;

- Fully compliant and stable operations with no operational or liquidity risks throughout the month.

Areas to Optimize

- Insufficient deployment of hedging frameworks during extreme unilateral selloffs;

- Room to refine timing for pre-emptive profit-taking and position reduction;

- Overreliance on long beta exposure, lacking diversified strategies for bear market environments.

V. July Market Outlook & Improvement Plan

Market Outlook

Bearish sentiment was fully priced in by late June, and downward momentum has weakened. The market is set to shift from one-sided declines to wide-range consolidation with oversold rebound opportunities. Systematic risks have marginally eased, yet a sustained bull trend has not materialized; choppy, high-volatility conditions will persist.

Strategic Improvements for July

1. Integrate hedging on a routine basis to cut the portfolio’s pure long beta risk;

2. Enforce strict aggregate position limits, prioritizing light swing trades and rebound opportunities in bearish regimes;

3. Diversify strategy mix by moderately increasing allocation to range-bound arbitrage and market-neutral strategies;

4. Bolster disciplined risk governance with rigid stop-loss and position-reduction protocols to cap maximum monthly drawdown.

VI. Conclusion

The -6.62% monthly drawdown constitutes normal net asset value volatility driven by a systematic bear market. The fund’s risk control frameworks, asset selection and risk management measures remained effective, delivering notable downside protection excess returns relative to the broader market.

Going forward, we will enhance bear market stability through optimized hedging, refined position sizing and diversified strategies to gradually repair the fund’s performance curve.

Disclaimer

This brief is for internal review and investor communication only and does not constitute investment advice. Cryptocurrency markets exhibit extreme volatility and elevated risks. Past performance is not indicative of future results.