Monthly NTA update - June 2026

Welcome to the monthly update for Neverwinter Fund I SLP for June 2026.

Fund performance is estimated, net of fees, and unaudited.

The fund declined by 17.0% over the month of June, underperforming the S&P 500 benchmark, which returned 1.1%.

While a monthly double-digit pullback is challenging, this level of volatility is characteristic of digital asset markets and, in our view, does not represent a long term structural shift. The primary headwind in June was a record-breaking $4.5 billion in net outflows from US spot Bitcoin ETFs. These redemptions triggered direct mechanical selling pressure as issuers liquidated spot holdings. Also hurting cryptos was a "higher-for-longer" US interest rate position, and the continued rotation of risk capital into mega-cap AI equities.

Despite these short-term headwinds, structural indicators and global regulatory progress continue to move firmly in crypto's favor. Following Europe's MiCA framework implementation, the UK Financial Conduct Authority (FCA) reached a major milestone in June by publishing its final rules for the new cryptoasset regulatory regime. This establishes a comprehensive framework that provides clarity for institutional participants ahead of its implementation next year.

On-chain, we also saw some notable pockets of resilience; Solana (SOL) demonstrated exceptional relative strength, bouncing 20% off its bottom from early in the month even as the broader market consolidated.

Historically, periods of severe market compression have often been healthy shaking-out phases that lay the groundwork for subsequent cycles. The Crypto Fear & Greed Index bottomed at an extreme reading of 12 last month - a level that has historically signaled seller exhaustion and preceded meaningful relief rallies.

While short-term volatility will undoubtedly persist, our medium-term outlook remains optimistic as institutional allocation structures mature globally.