Performance Update

As of March 2025, Bursera Capital has achieved a total ROI of 1085.85% since the fund’s inception in 2019, still outpacing both Bitcoin (696.31%) and the average fund‘s returns (450.12%) in the long run. Month-to-date returns of -10.82% are currently lower than Bitcoin (-2.16%) and industry averages (-3.90%). We maintain our commitment to a long-term investment philosophy, deliberately deprioritizing short-term performance fluctuations.

As we move into the second quarter, our conviction in the digital asset market—and our strategy—has never been stronger. Since inception, Bursera has delivered a Compound Annual Growth Rate (CAGR) of 53.09%, outperforming both Bitcoin (41.42%) and the average fund (30.82%). These aren’t just numbers—they’re a reflection of a disciplined, Bitcoin-first strategy executed through deliberate, data-backed trading. With many digital asset prices still trading well below their all-time highs and our protocol performing at peak efficiency, we believe this is an attractive entry point. The remainder of 2025 is poised for acceleration, and we are positioned to capture that upside.

Market News

Key takeaways from this month's market activity:

• According to the World Economic Forum (WEF), the majority of Gen Z and Millennial investors allocate more than 1/3rd of their portfolios into digital assets.
• The Securities and Exchange Commission (SEC) clarified that Proof-of-Work (PoW) mining activities do not constitute securities transactions, a significant win for the Bitcoin network.
• March saw weekly net positive inflows into Bitcoin Exchanged-Traded Funds (ETFs) for the first time in 5 consecutive weeks of outflows.
• Real-World Assets (RWA) market capitalization surpasses $10 billion - Larry Fink, BlackRock CEO, advocates for the approval of tokenized equities by the SEC.
• GameStop announces plans for $1.3 billion Bitcoin acquisition, causing its shares to rise by 11%.
• BlackRock launched Bitcoin Exchanged-Traded Products (ETPs) in European markets, which major analysts have cited as a key development in institutional adoption.

BlackRock expands Bitcoin Investment Products to Europe

BlackRock has officially entered Europe's digital asset exchange-traded product market with a physically-backed Bitcoin offering, extending its growing digital asset presence beyond the United States.

• IB1T trades on multiple European exchanges, including Deutsche Boerse, Euronext Paris and Euronext Amsterdam.
• The ticker matches BlackRock's U.S. Bitcoin ETF (IBIT), which has grown to $50.7 billion in assets, approximately triple the size of its closest competitor.
• The firm cites market research showing that 75% of professional investors express interest in Bitcoin ETPs within the next two years.
• BlackRock emphasizes the product's role in bridging traditional finance and digital assets for Europe's 25 million digital asset investors.
• Europe's digital asset ETP market remains significantly smaller than the U.S. equivalent, with the largest product holding approximately $1.3 billion.
• In response to rising competition, major issuers like CoinShares, WisdomTree, and Invesco have dropped fees to 0.25%.

SEC Clarifies: Bitcoin Mining Is Not a Securities Transaction

The SEC's Division of Corporation Finance issued an important clarification regarding Proof-of-Work (PoW) digital asset mining. The update provides regulatory clarity on which mining activities fall outside the scope of securities laws.

Key points include:

• Mining digital assets on PoW networks—especially Bitcoin—does not require SEC registration.
• The clarification applies explicitly to digital assets utilizing PoW consensus participation or network security.
• Both solo and pooled mining do not meet the "efforts of others" requirement under the Howey Test.
• Mining rewards are considered payments for network services rather than profits derived from others' efforts.

This follows a recent SEC statement on meme coins, suggesting a trend of increased regulatory clarity. The update is part of the SEC's broader Crypto Task Force initiatives, which aim to establish a clearer framework for digital asset regulation.

Digital Assets Now Represent Over a Third of Young Investors' Portfolios

A World Economic Forum study indicates a dramatic shift in investment behaviors among younger generations, with digital assets constituting a substantial portion of their portfolios. The WEF's 2024 Global Retail Investor Outlook shows that 62% of Millennial investors and 74% of Gen Z allocate at least one-third of their portfolios to digital assets.

• Among Gen Z investors, 35% dedicate more than half their investment portfolios to digital assets, while 36% allocate approximately one-third.
• Many younger investors find digital assets more comprehensible than conventional financial products like ETFs or bonds.
• Values alignment drives investment decisions for 70% of Millennials and 66% of Gen Z investors, with crypto's principles of decentralization resonating with their priorities.
• Emerging markets demonstrate higher digital asset adoption rates (36%) compared to the global average (27%).

From Outflows to Inflows: Digital Asset Markets Rebound After $6.4B Retreat

Digital asset markets experienced a sustained investor exodus despite the Trump administration's pro-crypto initiatives, with digital asset funds seeing significant outflows amid broader economic concerns. This trend coincides with increased investor skepticism in the US market, mainly due to the Trump administration's policy and tariff announcements.

• Investors withdrew $6.4 billion from digital assets from February 7th to March 14th, primarily from U.S. Bitcoin ETFs. The third week of March finally saw a reversal in the trend, with inflows outpacing outflows ($744M net inflows).
• U.S. Bitcoin ETFs recorded their longest streak of weekly outflows since their January 2024 launch.
• The broader CoinDesk 20 Index fell nearly 35% during the same period.
• Although Trump's Bitcoin Strategic Reserve initiative generated headlines, it failed to reverse concerns tied to trade tensions and monetary policy.
• Net inflows have continued through the remainder of March, with Fidelity Capital leading the rebound.

GameStop Makes Bold Move into Bitcoin Investment

GameStop has unveiled an ambitious plan to enter the digital asset market. It will allocate funds from a proposed financing round toward Bitcoin acquisition, sending ripples through both traditional and digital asset markets.

• GameStop plans to redirect funds from a proposed $1.3 billion convertible notes offering toward Bitcoin purchases, boosting its stock by 11% to $28 per share.
• The company is following a similar strategy to that popularized by Michael Saylor, though the exact allocation for Bitcoin remains undisclosed.
• Bitcoin responded positively to the announcement, climbing 1% to exceed $87,000.
• Bitwise analyst Jeff Park suggests this corporate initiative could potentially have a more significant market impact than the government's Bitcoin Strategic Reserve.
• This represents another significant instance of corporate Bitcoin adoption following the trend of companies adding the digital asset to their balance sheets.

The Rise of Tokenized Equities: Traditional Markets Meet Blockchain

Digital asset innovation is now flowing in both directions. While 2024 saw traditional finance giants like BlackRock and Fidelity bring digital assets to Wall Street through ETFs, 2025 witnessed digital asset protocols enabling blockchain users to invest in traditional equities without the hassle of leaving their digital wallets.

This emerging trend of tokenized equities promises to blur the line between digital assets and traditional markets, offering new opportunities for investors on both sides. In other words, this will make it easier for digital asset users around the globe to invest in companies like Nvidia and Apple, as well as commodities like gold.

The rise of Real World Asset (RWA) technologies has been, and continues to be, a key focus at Bursera due to their profound implications:

• TVL in RWA protocols has now exceeded $10B
• Major players include Plume Network, Backed, Polkadot, and Injective
• Benefits: 24/7 trading, faster settlement, global accessibility
• BlackRock's Larry Fink advocates for SEC approval of tokenized securities
• Injective reports $60M trading volume, strong demand from Southeast Asia

In the long term, the line between digital assets and TradFi will continue to blur until the two are indistinguishable - which will be a fundamental shift in how financial markets operate.