Digital Currency Index Report · 2026-08-05
Founders-tier proprietary digital asset index
The Founders Circle gives you access to our proprietary Digital Currency Index: a hand-selected basket of the ten digital assets we believe will define the next decade of decentralized finance. In a space where narratives rotate weekly and custody assumptions fail without warning, the Index provides a disciplined framework. You track the NAV. We do the work.
The Third Session
The Digital Currency Index at $261.87 marks the third consecutive up day, YTD improved to -14.39% and since-inception now +4.75%. The equal weight basket at $179.61 posted a slightly larger daily move (+1.30% vs the Index at +0.74%), which is exactly the mechanic to expect when digital assets rally with high correlation. Selection alpha shows up on dispersion days. It compresses on broad rally days because everything trades up together and the framework’s overweight’s and underweights temporarily contribute less to the spread.
The YTD spread between the Index and equal weight narrowed from 8.29 pp on Monday to 7.93 pp today, a 36 basis point compression across three sessions. The since-inception spread narrowed from 33.05 pp to 32.91 pp, a 14 basis point compression. Both are modest. The framework held its ground through a broad rally where selection alpha would typically compress harder, which is the correct reading for a strategy designed to defend on drawdowns and participate on rallies without needing to lead them.
PAXG Was the Day’s Trade
Pax Gold closed at $4,252.08 (+$179.67, +4.41%), the standout mover on the day and a signal worth reading. Monday’s Market Intelligence Report framed the bear steepener as the term premium reasserting itself in a curve that had been pinned by two years of assumed inflation control. That framing has an implication for gold: if the long end is pushing higher because term premium is expanding (uncertainty compensation), rather than because real rates are rising, gold does not have to fall. If anything, gold rallies as uncertainty compensation, which is exactly what happened today. If the Federal Reserve is going to continue their 9.4% annualized balance sheet increase, well then Gold will have to debase U.S. fiat dollars accordingly.
However, real rates are pushing higher and gold rallying is a temporary catch-up trade, is possible but less clean. Real rates rising typically produce gold weakness across multiple sessions, not a single +4.41% day. The move is more consistent with the term premium thesis than with a real rates thesis, and it is the second consecutive session where Bitcoin gained modestly (+0.75% today) while PAXG did more of the work. The Index captures both signals through its constituents.
