Charles-Edouard Bilbault
Global Equities Portfolio Manager
Fund update: R-co Thematic Blockchain Global Equity — May 2025
Fund Focus
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09/05/2025
Klara Sok
R-co Thematic Blockchain Global Equity Co-Portfolio Manager
“A top priority of my chairmanship will be to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.” Paul Atkins, Chairman of the SEC, Swearing in as new SEC Chair speech
In April, decorrelation between digital assets and the broader equity markets increased significantly, as investors searched for diversification assets. Spot Bitcoin ETFs saw record inflows of US$936m invested on a single day and net monthly inflows into digital assets products reaching US$2.4bn1. On regulatory front, new SEC Chair nominated by Donald Trump in January, Paul Atkins, was confirmed by the Senate this month. Prior to heading the SEC, Paul Atkins served as SEC commissioner and helped set up best practices in the digital assets sector.
Capital market activity also kept accelerating this month on this sector, as overall environment and regulatory framework is getting significantly more supportive. Tether, SoftBank and Cantor Fitzgerald backed new company, Twenty One successfully listed and oversubscribed. Core portfolio company Galaxy Digital’s Nasdaq listing was approved and expected on May 16th after a shareholder vote on May 9th, after more than three years of application process and nine rounds of comments with the public agency, including seven during previous administration. Stablecoin leader and portfolio company Circle who officially filed for IPO last month reportedly received an unsolicited takeover offer by Ripple, which Circle declined. On innovation front, April was very active as well, namely with BNY launching new blockchain accounting tool to facilitate tokenized funds administration with BlackRock as first client, Charles Schwab preparing to offer spot Bitcoin trading or Morgan Stanley reportedly integrating crypto trading on E*Trade.
In this context, the fund rebounded from April 8th lows and outperformed over the month, while broader equity market showed negative performance over the period. Unsurprisingly, performance was led by Digital assets/Fintech portfolio bucket, pulled up by Galaxy Digital and Coinbase. Audit trail/Industrial use cases’ contribution comes second, positively lifted by Palantir and SES AI. Blockchain infrastructure contribution was also positive with Cleanspark bounce-back.
We remained disciplined and took advantage of early April lows to purchase then underperforming companies like Galaxy Digital, Cleanspark and Coinbase and took some profits on Galaxy Digital at the very end of April. At the end of the month, our equity exposure was 93.2%2.
Industry news to watch:
Sony’s Soneium blockchain to offer tokenized Treasuries, private credit via Plume.
ING is working on a stablecoin, as have other large banks like JPMorgan and Société Générale.
Morgan Stanley reportedly plans to introduce crypto trading on E*Trade.
[1] Coinshares, data as of 23/04/2025
[2] Source : Rothschild & Co Asset Management, 30/04/2025
SRI risk indicator 6/7
The synthetic risk indicator is used to assess the level of risk of this product compared with others. It indicates the probability that this product will incur losses in the event of market movements or our inability to pay you. The risk indicator assumes that you hold the product for 5 years. The real risk may be very different if you opt to exit before maturity, and you may get less in return. We have classified this product in risk class 6 out of 7, which is a high risk class and mainly reflects a discretionary management policy seeking to invest in shares of companies active in blockchain themes. In other words, the potential losses linked to the future performance of the product are high and, if market conditions were to deteriorate, it is very likely that our ability to pay you would be affected. As this product does not provide protection against the vagaries of the market or a capital guarantee, you could lose all or part of your investment. Other materially relevant risks not taken into account by the indicator: credit risk, liquidity risk, impact of techniques such as derivatives: The use of derivatives may amplify the impact of market movements in the portfolio. For more information on risks, please refer to the fund prospectus available on our website: https://am.eu.rothschildandco.com
Past performance is not a reliable indicator of future performance and is not constant over time. The characteristics/objectives/strategies mentioned above are indicative and subject to change without notice. This analysis is only valid at the time of writing. The geographical and sector allocations and distributions are not fixed and may change over time within the limits of the SICAV fund’s prospectus
The information, comments and analyses in this document are provided for information purposes only and should not be construed as an investment or tax advice, or as an investment recommendation from Rothschild & Co Asset Management
[2] Source : Rothschild & Co Asset Management, 30/04/2025
SRI risk indicator 6/7
The synthetic risk indicator is used to assess the level of risk of this product compared with others. It indicates the probability that this product will incur losses in the event of market movements or our inability to pay you. The risk indicator assumes that you hold the product for 5 years. The real risk may be very different if you opt to exit before maturity, and you may get less in return. We have classified this product in risk class 6 out of 7, which is a high risk class and mainly reflects a discretionary management policy seeking to invest in shares of companies active in blockchain themes. In other words, the potential losses linked to the future performance of the product are high and, if market conditions were to deteriorate, it is very likely that our ability to pay you would be affected. As this product does not provide protection against the vagaries of the market or a capital guarantee, you could lose all or part of your investment. Other materially relevant risks not taken into account by the indicator: credit risk, liquidity risk, impact of techniques such as derivatives: The use of derivatives may amplify the impact of market movements in the portfolio. For more information on risks, please refer to the fund prospectus available on our website: https://am.eu.rothschildandco.com
Past performance is not a reliable indicator of future performance and is not constant over time. The characteristics/objectives/strategies mentioned above are indicative and subject to change without notice. This analysis is only valid at the time of writing. The geographical and sector allocations and distributions are not fixed and may change over time within the limits of the SICAV fund’s prospectus
The information, comments and analyses in this document are provided for information purposes only and should not be construed as an investment or tax advice, or as an investment recommendation from Rothschild & Co Asset Management
