Crypto Market Making Fund

March 2026 Operational Report

Core Performance: Fund monthly return: +3.37%Fund Positioning: Low-volatility, conservative crypto asset market-making strategy fund

I. Core Fund Information

• Fund positioning: Low-volatility, conservative crypto asset market-making strategy fund, zero leverage throughout the period, focusing on compliant mainstream assets with strict drawdown control.

• Performance benchmark comparison: BTC return -4.2%, ETH return -6.8%, overall crypto market index -5.1% over the same period; aggressive market-making funds in the industry generally lost 8%–15%.

II. Key Industry Events in March

1. Intensive regulatory rollout: On March 17, the SEC + CFTC classified 18 mainstream cryptocurrencies including BTC and ETH as digital commodities, clarifying regulatory boundaries. On March 27, the EU MiCA Regulation fully took effect, marking the crypto industry’s entry into a licensed and compliant era.2. Severe market volatility: BTC plunged sharply on March 19 and 28, triggering massive futures liquidations and a sharp rise in market volatility. Listed mining firm MARA sold 15,000 BTC throughout the month, exacerbating market fluctuations.3. Accelerated institutional adoption: ICE (parent company of the New York Stock Exchange) invested in OKX; Fannie Mae recognized crypto assets as eligible collateral; traditional financial capital gradually entered the market.

III. Performance Attribution for March

Leveraging a low-volatility conservative market-making strategy, the fund adapted precisely to industry regulation and volatile market conditions. Returns were mainly driven by:

1. Regulatory premium: Following clear regulatory classification of mainstream coins, liquidity on compliant exchanges improved significantly, spot market-making spreads widened, and core returns were generated from bid-ask spreads and platform rebates.2. Volatility arbitrage: During the two market crashes, order book depth weakened. The fund steadily provided liquidity, combined with options volatility market-making and futures-spot arbitrage to capture incremental returns in extreme market conditions.

IV. Strategy Outlook for April

1. Adhere to the low-volatility conservative strategy, continue focusing on compliant mainstream assets, and avoid aggressive chasing.2. Expand market-making business in compliant European and American markets, supported by the implementation of the EU MiCA Regulation and progress of U.S. regulatory bills.3. Closely monitor Federal Reserve policies and institutional capital flows, flexibly adjust market-making spreads and positions, and maintain strict drawdown control.4. Optimize on-chain risk monitoring systems to align with the latest industry regulations and trading rules, ensuring stable fund operation.

V. Summary

In March 2026, the crypto market faced a complex environment of regulatory implementation and extreme volatility, with mainstream assets declining across the board. Relying on its core strategies of conservative market-making, zero leverage and strict risk control, the fund achieved a positive return of +3.37%. This fully validates the resilience and profit stability of low-volatility strategies in extreme markets, delivering steady returns for investors.