The Terramatris crypto hedge fund has continued its upward trajectory this week.
As of March 27, 2025, the fund’s value has increased to $6,138, reflecting a 3.95% week-over-week growth (or +$233 in dollar terms). This follows last week’s significant rebound, where the fund grew to $5,904—a 15.31% gain. Despite these gains, we remain -21.46% below our all-time high of $7,811, recorded on March 6, 2025, underscoring the broader market’s persistent volatility.
This week’s recovery comes amid a fragile but stabilizing crypto market. Ethereum, our most impacted position, has climbed above $2,000 following a turbulent period when it dipped below this key level, triggering forced liquidations and panic selling.
The past week has been a blend of volatility and cautious optimism. Ethereum’s rebound from its lows and Bitcoin’s uptick suggest a potential shift in sentiment, though the market remains dynamic and unpredictable. From a technical analysis perspective, we maintain a cautiously optimistic long-term outlook. We see a plausible path for Ethereum to reach $2,500 in the coming weeks or months, though near-term reversals cannot be ruled out.
Trade Adjustments
A few weeks ago, we restructured our deep in-the-money ETH put options into covered calls on long perpetual futures to optimize risk, enhance capital efficiency, and reduce downside exposure. This adjustment has proven effective as the market begins to stabilize.
Current positions in long perpetual futures (settled in USDC):
- 0.01 BTC (break-even: $108,012) lowered by -$1,067 | strike $85,000
- 1.1 ETH (break-even: $2,793) lowered by -$23 | strike $2,100
- 5 SOL (break-even: $168.58) lowered by -$3.15 | strike $134
As we have call options expiring tomorrow (March 28, 2025) - we look to generate additional options premium thus lowering our break even price for ETH to about $2,773, Bitcoin around $106,000 and SOL around $162.
It is highly likely that our Bitcoin (BTC) and Solana (SOL) options will expire in the money tomorrow. We are currently evaluating the potential strategy of converting these positions back into put options, targeting lower strike prices, while continuing to capitalize on the collection of options premiums.
With current strike prices and options premiums there is still about $1,165.32 funds to be recovered to break even our suffered positions. One of the short term goals is to sell weekly call options to offset the loses and generate cash, which later can be used to purchase actual spot crypto. As while in the recovery mode we are not buying any additional spot crypto as we don't have enough cash / and we don't want to use margin. Cash is KING!
No new capital has been injected into the fund, and liquidity remains a top priority.
TerraM Token Update
The TerraM token continues to demonstrate resilience, outperforming much of the broader crypto market, but thats mostly attributed that there are just a few TerraM token holders and seems most are interested in long term growth, which is great!
- Current TerraM Price: $2.60 (unchanged week-over-week)
We are committed to improving liquidity for TerraM, but given current market conditions, we do not anticipate a significant liquidity increase or another buyback until the total fund value reaches $8,000.
Looking Ahead
While the fund has posted two consecutive weeks of gains, the market remains fragile, and risks are elevated. Our key objectives for the coming weeks include:
- Risk Mitigation & Capital Preservation – Limiting exposure to further downside volatility.
- Strategic Adjustments – Leveraging options strategies and hedging to optimize positions.
Institutional interest in crypto remains robust, but traders should exercise caution in the near term, as further corrections could precede a sustainable recovery.
This update is for informational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.