Core Fund Within the Core Fund, we temporarily reduced market exposure by approximately 15% during the recent downturn, taking profits on part of our Bitcoin position at levels between USD 107,000 and USD 105,000. This decision aligns with our tactical risk management approach, freeing up capital to maintain flexibility in responding to further market developments. Should the market continue to correct, this capital will be gradually reinvested at lower levels; conversely, if the market strengthens, we plan to rebuild exposure from around USD 107,000. Thanks to our relatively higher allocation to Bitcoin and Ethereum, which declined less sharply than most altcoins, the fund once again outperformed the CCI30 Index during this corrective phase. This defensive positioning has once more demonstrated its value during periods of elevated volatility. Yield Fund The Yield Fund experienced a modest pullback in the final weeks of October, mainly due to temporarily lower trading volumes on perpetual derivatives platforms—markets where we actively provide liquidity. Despite this slowdown, the fund closed the month with a positive net return of 0.74%. In the current market environment, we are building new positions in basis strategies, which combine a spot position in a cryptocurrency with a short position in the corresponding future. These strategies capitalize on price differentials between spot and futures markets and currently generate annualized yields exceeding 20%. Given their market-neutral nature, such positions enhance both the stability and return efficiency of the fund. Frontier Fund The Frontier Fund felt the impact of the broader correction within the altcoin segment in recent weeks. Many smaller, more innovative projects saw their valuations come under pressure, despite continued on-chain and protocol-level activity. Our long-term outlook for this category remains unchanged. The underlying fundamentals across several ecosystems remain strong, and the current market environment provides opportunities to recalibrate positions and add value at attractive levels. For this fund, a long-term investment horizon is key—where discipline and timing remain essential to realizing future returns.

October has officially come to an end, and the hype leading up to the month exceeded the actual price growth. In fact, mid-October saw a massive crash from which the crypto market has yet to recover. Bitcoin continues to struggle, dropping below €90,000. What is driving this downturn? Falling Prices and Cautious Investors Bitcoin continues to lose ground, recently trading at $103,578, near the October 17 low. At the same time, Ether declined 3.4% to below $3,500, further dampening the momentum of the past weeks. This weakness follows historic liquidations of leveraged positions three weeks ago, which wiped out billions of dollars. Since then, investors have remained cautious, with few willing to commit significant capital to a quick Bitcoin recovery. Several factors weigh on sentiment: outflows from Bitcoin and Ether ETFs, ongoing liquidations in derivatives markets, and concerns over potential selling by digital-asset treasuries. A further decline would draw attention to the critical $100,000 level, briefly breached in June. Open interest in perpetual futures currently sits around $68 billion, approximately 30% below its October peak, while $1.2 billion in bullish positions was wiped out in the past 24 hours. Historically Strong October Under Pressure October has traditionally been one of Bitcoin’s strongest months, with an average gain of 22.5% over the past decade. This year, however, is an exception: the token has fallen more than 6% so far, marking one of the worst Octobers since 2014. Equities, commodities, bonds, and gold all performed strongly this month, while Bitcoin remains roughly 14% below its record high and shows little of the defensive role that some investors attribute to it during periods of macro uncertainty. The recent wave of liquidations highlights that the crypto market’s infrastructure is primarily designed to channel momentum, not mitigate risk. This dynamic has contributed to a broader sentiment shift: investors are embracing risk again, but less so in digital assets. Meanwhile, gold has quietly reclaimed its role as a defensive hedge, delivering more stable returns in 2025, including last October. From a technical perspective, Bitcoin is currently testing the lower edge of its short-term range, with key support zones between $107,000 and $109,000. A break below this level would likely accelerate a pullback toward the $104,000–$106,000 band. Whether investors adhere to the traditional “hodl” advice or choose to sell, this October has proven unpredictable, emphasizing once again the volatility and risks inherent in the crypto market.

The European Central Bank (ECB) could launch a pilot phase for the digital euro as early as 2027, provided that national governments and the European Parliament establish a legal framework next year. The announcement follows a decision by the ECB’s Governing Council to move the project into its next phase, as the current two-year preparation period concludes this month. A potential full rollout of the digital euro could begin in 2029. According to the ECB, pending approval by European co-legislators in 2026, a pilot phase and the first transactions could take place from mid-2027. “This is not merely a technical project but a joint effort to make Europe’s monetary system future-proof,” said ECB Executive Board member Piero Cipollone. The digital euro, he added, would also help safeguard Europe’s monetary sovereignty and economic security. The project aims to create an electronic equivalent to cash while reducing reliance on major payment providers such as Visa, Mastercard, and PayPal. The rapid rise of U.S. dollar-backed stablecoins, recently championed by Donald Trump, has further intensified the debate. At the same time, there is still no consensus on a legal framework: several prominent members of the European Parliament are advocating for private-sector solutions to address the fragmentation in European payments. Meanwhile, banks—especially in Germany—have voiced concerns about potential large-scale deposit outflows once the digital euro is introduced. In the upcoming phase, the ECB and the 20 national central banks will focus on three key areas: developing the technical foundations, collaborating with market participants, and supporting the legislative process. The ECB emphasized that preparations will remain flexible, taking into account the call from eurozone leaders to be ready for potential issuance as soon as the framework allows—while the legislative process is still underway. Based on the findings from the preparatory phase, the total development cost of the digital euro is estimated at around €1.3 billion up to the first issuance, with annual operating costs of approximately €320 million starting in 2029. “The Eurosystem will bear these costs, just as it does for the production and issuance of euro banknotes—which, like the digital euro, represent a public good,” the ECB stated.

Worldline, a leading European payment processor, has entered into a strategic partnership with French fintech Fipto. Together, the two companies aim to explore how stablecoins can be integrated into existing European payment networks. The initiative marks an important step toward bridging traditional and digital financial infrastructures. According to Thibault Pele, Head of Digital Currencies at Worldline, the collaboration aims to “advance the next generation of payment solutions, where virtual and traditional money coexist seamlessly.” By combining their expertise, Worldline and Fipto hope to accelerate the adoption of stablecoin-based transactions and turn innovation into tangible solutions for merchants, banks, and financial institutions. Stablecoins are increasingly viewed as a key link in the evolution of the payments landscape. They enable faster, cross-border, and programmable transactions, potentially strengthening Europe’s financial sovereignty by creating an alternative to the current dominance of USD-backed digital currencies. Within this partnership, Fipto contributes its regulatory experience and licensing framework, including authorizations from financial supervisors in France and Luxembourg.