Introduction

Today’s crypto markets demand resilient, transparent products balanced between liquidity, yield, and institutional security. MI4, a structured, institutional-grade fund and a part of the Mantle ecosystem, illustrates this by dynamically adjusting exposure across USD and major digital assets each quarter. For Q4 2025, MI4's Investment Committee is decreasing the Fund’s USD component from 15% to 10%, pro-rata under the usual market-cap weighted formula into BTC, ETH, and SOL, with stringent allocation parameters maintained.

Why Increase Crypto Beta Now?

This move is shaped by four drivers:

• Policy: The Federal Reserve cut rates 25 bps late October and will conclude QT on December 1, easing financial conditions. U.S. headline CPI near 3.0% reflects declining inflation, which traditionally supports risk assets.

• Access & Liquidity: Early October saw record inflows into regulated spot BTC and ETH ETFs (over $5.95B) while stablecoin float remains above $300B, indicating robust on-chain liquidity despite volatility.

• Government Shut-Down: The ongoing federal shutdown (since October 1) impacts sentiment and liquidity. Impending resolution is likely to improve conditions.

• Crypto Market Washout: October’s correction was the largest single-day liquidation event ever, erasing $19B+ in levered positions and setting a lower-leverage base for potential forward returns.

Investment Mechanics & Methodology

• USD allocation falls from 15% to 10%—the reduction redeployed into BTC, ETH, and SOL per MI4’s cap/floor constraints (no asset >50%, none <3%).

• MI4 maintains only spot exposure and fixed holdings between scheduled quarterly rebalances—no leverage, no derivatives.

• Post-rebalance documents will reflect the new composition.

Institutional Structure and Tokenization

MI4 operates under a BVI Limited Partnership, managed by Mantle Guard Limited—ensuring robust governance, fund administration, compliance, and investor protections. Strategic partners (e.g., Securitize) tokenize eligible fund interests on Mantle Network, facilitating compliant transferability and unlocking opportunities for on-chain liquidity and collateralization. Infrastructure utilizes Fireblocks and multi-signature controls, built for institutional standards.​

Compliance and Risk Disclosure

MI4 is available to non-U.S. persons globally and U.S. accredited investors per applicable regulations. All onboarding is subject to strict compliance and investor verification protocols. MI4 is designed to serve as an institutional portfolio tool, not a solicitation or investment recommendation. Past performance is not indicative of future results. Crypto assets remain highly volatile and speculative.

Closing

MI4’s 2025 Q4 rebalance exemplifies adaptive, institutional-grade crypto portfolio construction. Clients and institutions are reminded that all investment decisions must be grounded in robust due diligence, and that crypto exposures should be approached with full awareness of associated risks.

MI4 Disclaimers

This document is for information purposes only. This document does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. It is not intended for distribution or use by any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication or use would be prohibited. No action has been made or will be taken that would permit a public offering of the interests described herein in any jurisdiction in which action for that purpose is required.

The interests will only be offered to (i) non-U.S. Persons as defined by reference to Regulation S under the Securities Act of 1933, as amended (the "Securities Act") or (ii) “accredited investors” as defined in Regulation D under the Securities Act. In each case, prospective investors must also satisfy the definition of “professional investor” under the BVI Securities and Investment Business Act, 2010. Although general solicitation is permitted under Rule 506(c) offerings, purchasers must be accredited investors and meet certain Securities and Exchange Commission verification requirements for validation of their "accredited investor" status.