Investor Letter

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Eagle, Colorado

To all partners,

“Crypto” has been on a great run after bottoming in December 2018. The Bitcoin futures contract (/XBT) saw a low of $3,130 on December 7th and tested those levels again the weekend of December 14th-17th. In hindsight, what this means is that yet again, digital assets were a leading indicator of risk appetite in the markets. Not that digital assets should be a leading indicator for capital markets – it’s just that they appear to be.

Since we skipped last months investor letter, I want to take a moment to bring you up to speed on where we have been and where we are as of the end of the first quarter of 2019.

The following chart will do that succinctly:

 

Past performance can never guarantee future returns. Further, wherever there exists the potential for profit there is also the risk of loss. The risks in digital asset markets are hugely magnified compared to traditional markets.

 

I don’t want to spoil the fun for next month but if April were to end today – it would be our best month yet. We’ll have to see if it holds up.

We didn’t have much activity in the month of March. We were mostly sitting, watching, waiting… for anything to happen. Nothing ever really did. But things got moving on the very last day of the month and we were ready to pounce when prices started to break higher.

Steven has done a a great job building us a portfolio of digital assets that actually have sound use cases far beyond that of simply trying to provide anonymity for the parties to nefarious transactions.

In talking with Steven, it is clear that he is of the opinion that “winter is over” in digital asset markets. In a private note to the team, Steven recently commented:

“In a positive sign for digital asset markets, the SEC is seeking to hire a “Crypto Specialist”, indicating to me a willingness to work with the industry vs. ban it entirely – and that means an ETF is still on the table!

Additionally, Japan has latched on to the wave and refuses to let go as the e-commerce giant in that country, Rakuten (RKUNY) was recently granted a license to open a brand new exchange for digital assets.

Finally, in other positive news – 70,000,000 train riders in Japan may soon have the ability to use their chosen digital asset to pay for tickets using their existing payment cards.

We still have the capacity to take on additional assets in the fund if you, or anyone you know would like to gain (increased) exposure to this exciting space. In all my years of trading and exposure to government and capital markets – I’ve never been more excited than I am today about the opportunity I see ahead. There will be peaks and valleys, to be sure, but the river is flowing… it will find its way to the ocean, eventually.”

And with that, I will let you get back to your busy day.

Thank you for your investment in our fund.

Until next time,

Shane Fleury, President

Third Wave Digital Asset Fund

Legal Information and Disclosures

This commentary expresses the views of the author as of the date indicated and such views are subject to change without notice. Third Wave Digital Asset Fund, LLC (“TWDAF”) has no duty or obligation to update the information contained herein. This information is being made available for educational purposes only. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources. The TWDAF believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. This memorandum, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of the TWDAF. Further, wherever there exists the potential for profit there is also the risk of loss – in the world of digital assets this is magnified.