NODE Fund Drops -13.5% in Worst Month Since Launch

NODE, a fund focused on digital assets and companies, suffered its worst month since launch in July. The fund returned -13.5% for the period, outperforming the Nasdaq 100 by 7.9 percentage points but underperforming the S&P 500 by 13.6 percentage points. Bitcoin and Ethereum rallied during this time, with Bitcoin up 7.3% and Ethereum up 18.2%. The fund's miners and AI infrastructure equities drove the drawdown, while spot crypto prices rose.

The fund took a risk-on approach in July, adding to its positions in the hardest-hit miners rather than de-risking. This decision was made despite the significant declines in these assets. As a result, TeraWulf was the single worst position at -28.5% and -185 basis points, followed by Applied Digital (-26.6%, -99 basis points), IREN (-19.5%, -82 basis points), Riot Platforms (-26.3%, -82 basis points), and Figure (-18.9%, -76 basis points). The fund reduced its positions from 58 to 49.

The fund's risk level ran at a record high for the month, with an annualized volatility of 68.9% and an 18.3% peak-to-trough drawdown. This was the worst month since the May 2025 launch, and only nine out of twenty-two trading days were positive.