Charles-Edouard Bilbault
Global Equities Portfolio Manager
Fund Update : R-co Thematic Blockchain Global Equity — June 2025
Fondos en el foco
—
11/06/2025
Klara Sok
R-co Thematic Blockchain Global Equity Co-Portfolio Manager
"We want our fellow Americans to know that digital assets are part of the mainstream economy, and are here to stay" JD Vance, US Vice-President
In May 2025, global markets rebounded as U.S.-China trade tensions eased with a 90-day tariff truce. Strong corporate earnings, particularly in tech, and moderating inflation supported risk assets, though volatility persisted due to geopolitical uncertainties, renewed fears around US fiscal deficit and tariff policy shifts. Meanwhile, Blockchain and digital assets regulatory and legislative dynamics keep easing broader adoption, at the institutional and corporate level with stablecoin Genius act advancing closer to the Presidential desk. In Hong Kong, long-awaited stablecoin bill was passed and public consultation on AML compliance was launched.
Capital market activity also kept pretty active across our portfolio companies. Coinbase confirmed its acquisition agreement with digital assets derivatives global leader Deribit for US$2.9bn2. This acquisition is expected to set this latter as the one of the largest player in the digital assets derivatives segment. Coinbase became the first Blockchain based company to join the S&P 500 index. Thanks to a regulatory nod from the SEC, Galaxy Digital and DeFi Technologies successfully uplisted in Nasdaq, unlocking access to a significant pools of capital. Robinhood agreed to acquire Wonderfi for C$250m to accelerate growth in Canada2. TaskUs is taken private at a 26% premium by its co-founders and a Blackstone affiliate2. Circle who plans to list on Nasdaq early June reportedly declined takeover offers. Meanwhile, BlackRock intends to take a 10% stake in Circle during the initial public offering, which is over 25 times oversubscribed according to industry insiders3.
In this context, the fund kept outperforming in May, building up on the strong momentum initiated in mid-April. Performance was led by Digital assets/Fintech portfolio category, with Galaxy Digital, Coinbase and Robinhood leading. Blockchain infrastructure portfolio bucket also strongly contributed to performance this month, with diversified crypto-miners to cloud HPC positively lifted by renewed commitment around AI related investment from hyperscalers.
We remained disciplined and took advantage of continued market strength to reduce our exposure to Palantir ahead of earnings and trimmed The Blockchain Group. We marginally strengthened our exposure to Asia and added some shares of Cosco Shipping, Cango and OSL. At the end of the month, our equity exposure was 93.3%4, slightly building back up our cash holding.
Industry news to watch:
MUST READ: our March 2025 industry outlook.
As previously stated, with increasing regulatory clarity and accelerated adoption trends, we remain extremely confident about the bright outlook for the Blockchain industry.
Blockchain: Large-scale adoption accelerated by supportive regulatory momentum
[1] The synthetic risk indicator shows the level of risk of this product compared to others. It indicates the probability that this product will suffer losses in the event of market movements or our inability to pay you. Risk scale from 1 (lowest risk) to 7 (highest risk); the lowest category does not mean a "risk-free" investment. The risk category associated with this UCI is not guaranteed and may change over time. We have classified this product in risk class 6 of 7, which is a high risk class. This means that the potential losses associated with the future performance of the product are high and, if market conditions deteriorate, it is very likely that our ability to pay you will be affected. Other important risk factors not adequately covered by the indicator : Liquidity risk: Risk linked to the low liquidity of the underlying markets, which makes them sensitive to significant buying and selling movements.
[2] Source : Coinbase, June 2025.
[3] Source : Bloomberg, 28/05/2025.
[4] Source : Rothschild & Co Asset Management, 31/05/2025.
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 : Coinbase, June 2025.
[3] Source : Bloomberg, 28/05/2025.
[4] Source : Rothschild & Co Asset Management, 31/05/2025.
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
