Performance Update

As of May 2026, Bursera Capital's total ROI is 614.36%* since the fund's inception in 2019, with Bitcoin standing at 611.83% and the average fund reaching 442.72%. Returns are 4.52%*, with the average fund reporting 1.28% and Bitcoin at -3.29%. Our Compound Annual Growth Rate (CAGR) is 33.34%* with Bitcoin at 33.27% and the average fund at 28.09%.

EXECUTIVE SUMMARY

Two forces dominated digital asset markets in late May and early June 2026: continued momentum in stablecoin adoption across payments and settlement infrastructure, and an escalating military conflict in the Middle East. Stablecoins continued to gain traction as core financial infrastructure, with rising transaction volumes and increasing integration across institutional payment and treasury systems. Within the same period, geopolitical escalation—including U.S. strikes near the Strait of Hormuz, Iranian retaliation, and sanctions on Iranian crypto exchanges—triggered over $950 million in liquidations and pushed Bitcoin toward $65,000. Against that backdrop, institutional capital has grown more defensive and pushed Bitcoin toward $65,000. Against that backdrop, institutional capital has grown more defensive and selective, reinforcing trends in digital asset fund management already underway.

I. Stablecoins Continue Their March Into Traditional Finance

KEY SIGNAL

Stablecoin adoption continued accelerating in late May and early June, with total stablecoin supply surpassing $260 billion and settlement volumes reaching levels that increasingly rival traditional payment networks. What was once viewed primarily as crypto infrastructure is now becoming part of mainstream financial plumbing.

What Happened

Institutional interest in stablecoins continued expanding across payments, settlement, and treasury management. Major financial institutions have increasingly explored tokenized deposits, blockchain-based settlement systems, and stablecoin payment rails as a means of reducing costs and improving settlement speed.

The trend extends beyond crypto-native firms. Payment providers, banks, and asset managers have continued building infrastructure around tokenized dollars, while regulators in several jurisdictions have moved closer to establishing formal frameworks governing reserve requirements and issuance standards.

At the same time, stablecoins have become one of the fastest-growing segments of the digital asset ecosystem. Combined market capitalization reached new highs during the quarter, while transaction volumes continued demonstrating real-world demand beyond speculative trading activity.

Why This Matters

For years, institutional adoption of digital assets was largely measured through investment products and trading activity. Increasingly, however, adoption is occurring through financial infrastructure itself.

Stablecoins represent one of the clearest examples of this shift. Unlike many blockchain use cases that remain experimental, dollar-backed digital assets are already facilitating payments, settlement, collateral movement, and cross-border transfers at scale.

As tokenization continues expanding and traditional financial institutions deepen their involvement in blockchain-based infrastructure, stablecoins may ultimately prove to be one of the most important bridges between traditional finance and digital asset markets.

II. Geopolitics Reasserts Itself: The Strait of Hormuz and Its Market Fallout

KEY SIGNAL

U.S. military strikes on Iranian installations near the Strait of Hormuz between May 25 and May 28 triggered nearly $1 billion in crypto liquidations, pushing Bitcoin below $73,000. Following the passage of a U.S. House War Powers Resolution on June 3, Bitcoin rebounded 19% from its lows to trade above $77,300.

What Happened

The strikes were a response to Iranian drones targeting commercial vessels in the Strait of Hormuz. Iran retaliated on June 1 with missile and drone attacks on a U.S. airbase in Kuwait—the most significant escalation since a fragile April ceasefire. CoinShares noted that Iran-related concerns overwhelmed positive sentiment from the CLARITY Act vote, with digital asset AUM falling from $148 billion to $141 billion. The U.S. Treasury simultaneously sanctioned Iranian crypto exchanges and froze approximately $500 million in digital assets linked to Iranian entities.

One notable side effect: over multiple weekends as strikes unfolded, decentralized crypto exchanges became the primary venue for real-time price discovery in oil, gold, and other assets when traditional markets were closed — adding fresh pressure on NYSE and Nasdaq, both of which have filed proposals to extend equities trading to 22-23 hours per day.

Why This Matters

The Strait of Hormuz handles roughly 20% of global oil traffic, making any sustained disruption a systemic macro event. Bitcoin's swift recovery following the War Powers Resolution suggests the investor base is increasingly treating geopolitical dislocations as entry points rather than exit signals.

III. Digital Asset Fund Management: Selectivity Is the New Strategy

KEY SIGNAL

Market-neutral digital asset strategies are up approximately 2% year-to-date while directional funds have declined around 5.4%. The gap between top- and bottom-quartile managers continues to widen.

What Happened

Broad crypto exposure has not worked in 2026. Concentrated positions in assets with verifiable fundamentals—on-chain revenue, active users, clear product-market fit—have. Around 85% of token launches tracked in 2025 now trade below their opening prices. Limited partners are applying institutional-grade due diligence across fund structures, onchain vaults, and curators alike. Approximately 78% of crypto funds manage less than $50 million—a size distribution that creates structural pressure on sub-scale managers during flat or negative return periods.

Why This Matters

As passive products absorb beta demand through spot ETFs, the sustainable edge for active managers increasingly lies in research depth and uncorrelated return generation. The managers that navigate this transition will define what institutional digital asset management looks like in the years ahead.

Closing Perspective

The late May and early June period illustrated the dual nature of the moment digital assets now occupy. Legislatively, the industry is closer to durable U.S. regulatory clarity than at any prior point. Geopolitically, crypto remains connected to the same macro forces that move every risk asset. What has changed is the recovery pattern—and the investor base driving it.

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*Fund I (unaudited) was open from July 2019-2021 before the Fund was transitioned to the Cayman Islands. Cumulative return net of fees, between Bursera Fund I and the continuation Fund II. *Data from May 2026 subject to crystallization.