Blockchain Is Charging Forward With Or Without Clarity.
In June BLOK experienced a pullback in performance of 7.61% but the 26.37% rebound in the second quarter showed strong results. Year-to-date (YTD) the Fund is up 10.35% (NAV returns, view standardized performance). We’ve seen this kind of volatility before, and it’s historically been followed by an explosive rebound. Markets sometimes go through a digestion period to find price equilibrium while investors assimilate information and risks, but in the past have found a clear path forward as foundational progress becomes convincing. We think we are in this kind of setup based on the innovation and adoption we are seeing. For new investors, however, the challenge is getting started.
June Highlights:
Blockchain is everywhere, particularly in finance and the financial rails. While Strategy and Bitcoin in general may be having trouble at the tail end of a bear market, we are optimistic that a “winter chill” will be coming to an end. Here are some key highlights of our June thoughts:
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Citi, JP Morgan & Major Banks — Tokenized Deposit Network The largest U.S. banks plan to launch a tokenized deposit network, to be operated by the Clearing House, connecting traditional payment rails with digital asset infrastructure — positioning it as a direct response to crypto encroachment on banking.1 |
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Jamie Dimon on Blockchain JPMorgan CEO Jamie Dimon stated that blockchain will “replace financial market infrastructure,” noting that JPMorgan is already among the largest users of the technology — while continuing to distance himself from speculative cryptocurrencies.2 |
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SpaceX Hyperledger and Tokenized Shares Tokenized equities saw a record of $3.4 billion in volume for the month of June, (The Kobeissi Letter, 2026). Tokenization platform xStocks launched tokenized SpaceX shares (ticker: SPCXx) on a blockchain, offering crypto traders 24/7 access. Demand was described as overwhelming, though the launch hit snags when exchange Bybit reportedly did not receive any SpaceX allocations. We would also highlight that the Hyperliquid platform telegraphed the opening of SPCX stock on the Nasdaq prior to it officially opening on June 12th and allowed people plenty of time to trade the stock prior to the issuance date. A substantial amount of the volume growth has also been driven on the Jupiter platform, the largest on-chain platform, and about 60% of volume has been traded off hours. |
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Figure Acquires Kiavi |
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Open Standard |
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Strategy (MSTR - aka MicroStrategy) |
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Market Structure Bill |
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Swift’s Blockchain ledger moves from concept to a plan of action |
Attribution:
BLOK’s returns have historically been lumpy, and June and the second quarter were no exception. In June, the Fund was down, with no stocks contributing more than 0.25% of positive return and weak breadth in about a handful of stocks in the range of 0.52% to 0.83%. To be clear, diversification was our friend despite the decline. Strategy, for example, was down 45% during June yet only hurt performance by 0.66% because the stock’s weighting in the Fund was below 1%. We have found that diversification is the best defense when declines occur because we can re-load for the upswing.
While Bitcoin declined approximately 13% during the quarter, BLOK advanced 26.37% (NAV), driven primarily by exposure to data center infrastructure companies.
Leading contributors included:
- HUT 8 (HUT): +4.69% contribution; stock up approximately 147%
- Cipher Digital (CIFR): +3.15%; stock up approximately 90%
- TeraWulf (WULF): +2.66%; stock up approximately 71%
- Core Scientific (CORZ): +1.89%; stock up approximately 71%
- Applied Digital (APLD): +1.26%; stock up approximately 57%
- CleanSpark (CLSK): +1.16%; stock up approximately 71%
BLOK also benefited during the second quarter from exposure in the semi-conductor industry. AMD and DELL contributed about 2.6% each with AMD’s stock moving about 185% and DELL’s stock moving about 163%.
We continue to maintain direct exposure of about 8.25% through holdings in Bitcoin ETFs, Ethereum ETFs and about four Digital Asset Debt companies (Strategy/MSTR, Metaplanet 3350 JP/MTPLF, Sharplink/SBET, and Hyperliquid/PURR).
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Transaction and Repositioning: In June we continued to manage some of the idiosyncratic risk by trimming into strength in winners among the above-mentioned data centers, and we swapped some exposure from DELL Computers (DELL) into Broadcom (AVGO). The Fund’s top 10 holdings have historically been in the range of 33% to close to 40%. From May 30 to June 30, this percentage was reduced from 37% to 34%. When we are at the lower end, we tend to be playing defense and may hold some cash in the range of 2-3%. |
1CryptoNews. JPMorgan, Citi, and Bank of America Just Built a Tokenized Payment Network to Kill Stablecoins. June 6, 2026.
2YouTube, Forbes Breaking News. JPMorgan CEO Lays Out Why Crypto Will 'Replace Financial Market Infrastructure' In Future. May 31, 2026.
3Yahoo Finance. Open Standard Unveils Dollar Stablecoin Backed by Visa and Mastercard. July 1, 2026.
4Reap. What Is Open USD? The Visa and Stripe Backed Stablecoin, Explained. July 1, 2026.
5CCN. Bitcoin Halving Cycle: Why the 2026 Crash Was on Schedule. June 11, 2026.
6Galaxy. Bitcoin May Not Have Bottomed Yet. Here’s Where the Data Says it Could. June 12, 2026.
7Swift. Swift’s Blockchain Ledger Ready for Use as 17 Banks Set to Pioneer Tokenised Cross Border Payments on Trusted Global Infrastructure. July 9, 2026.
8Financial News. U.S. DTCC to Launch DTC Asset Tokenization Platform in October [Crypto Briefing]. July 9, 2026.