September 2021: London Hard Fork
Ethereum ("ETH") activated its much hyped "London" hard fork in September and increased sharply during the month. A long-standing challenge for the ETH network has been the unpredictable and, at times, exorbitant transaction fees. The "London" changes to the ETH code are designed to fix these issues by destroying or burning ETH coins and changing the way transaction fees work to allow for more predictability. The market reacted in a positive way; ETH increased significantly and continues to flirt with the $4,000 price level.
The digital asset market, as a whole, benefited from the ETH code change and is now trending upward. Our Fund (CkSum Select Fund l) gained nearly 24% for the month with its ETH allocation leading the performance for the month.
The well-recognized free consumer-based trading platform, Robinhood, noted in their prospectus that in QI of 2021 alone, they had over 9 million customers trading in digital assets with over 80 billion. Galaxy Digital reported that venture capital firms invested more capital into digital assets startups in Q2 than ever before. The general consensus from the CkSum team is that as the larger financial industry continues to adopt and embrace the digital asset market, overall valuations will increase, and we will begin to see the first signs of true disintermediation and disruption. CkSum is well positioned to capitalize on these trends.
If you did not get a copy of the CkSum Insights Vol. 2 where Richard and Paul discuss Governance within the industry, please reach out for a copy. If you have any questions for me or the CkSum team, please reach out at your convenience.
- James Dougal, CEO