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Crypto Rallies to Wall Street’s FOMO: What Happened in Crypto This Week?
• 13F Filings Disclose Wall Street’s FOMO
• Crypto Soars as Inflation Shows Signs of Cooling
• Chainlink Continues Powering Tokenization
Crypto Soars as Inflation Shows Signs of Cooling
While inflation shows tentative signs of easing, both Bitcoin and Ethereum surged on positive macro data and market forecasts suggesting potential rate cuts. However, Fed officials seem to be less optimistic. We’ll explore the conflicting signals, unpack the Fed’s next move, and highlight key events that could impact markets this week.
The Consumer Price Index (CPI) dipped to 3.4% in April, down from March’s level of 3.5%. Similarly, Core CPI, which excludes food and energy prices, also slightly declined to 3.6%. This decrease, coupled with weaker-than-expected retail sales data, suggests consumer spending may be easing, further dampening inflationary pressures. However, the Producer Price Index (PPI), which reflects wholesale costs, exceeded expectations in April, suggesting price pressures persist and may eventually reach end-consumers.
Nevertheless, the CPI news on May 15 was followed by a daily surge in Bitcoin’s price, jumping 7.5% to around $66K. Furthermore, on May 20, speculation around a potential ETH spot exchange-traded fund (ETF) in the U.S. sent the market on an even bigger rally, with Bitcoin and Ethereum surging by 13.6% and 24%, respectively over the past week.
Figure 1 – Bitcoin/USD Performance Against Last Week’s Events
Source: TradingView
Still, the high-for-longer sentiment seems to be the overarching theme in the Fed. Last week, high ranks of the Federal Reserve like Chair of Supervision Michael Barr and Vice Chair Philip Jefferson reiterated that although April’s reading may be considered encouraging, it’s still not enough to change the Fed’s stance on cutting interest rates.
Later today, members of the Federal Open Market Committee (FOMC) have a busy schedule of events where they’ll speak about economic outlook and monetary policy, which will be closely monitored given their effect on the general market sentiment.Coming out tomorrow, the minutes from the FOMC meeting earlier this month are expected to reveal further clarity on the Fed’s next move regarding interest rates and money supply. Should this reveal a dovish stance, investors may be pushed towards riskier assets. According to CME FedWatch, market participants are currently pricing a 60% chance of rate cuts in September and 88.5% in December.
13F Filings Disclose Wall Street FOMO
Beyond the macro news, on Wednesday the deadline for the 13F filings concluded, revealing significant Bitcoin holdings among investment managers. There are 937 professional investors holding $11B in the U.S. Spot Bitcoin ETFs, representing 18.7% of the ETFs’ assets under management. In comparison, Gold ETFs had a modest 95 professional firms invested by the first quarter following the launch. Hedge fund Millennium Management is the largest institutional holder of the new funds, with roughly $2B invested, however the reach extended beyond traditional investment firms.
It has also been made public that the State of Wisconsin Investment Board purchased more than $160M in shares of Bitcoin ETFs in Q1, with the majority of that representing assets in the Wisconsin Retirement System, a growing trend that exemplifies the demand for Bitcoin as a store of value. Additionally, some of America’s biggest banks who had voiced adversary stances towards crypto have also reported Bitcoin ETF holdings. Morgan Stanley has recently disclosed it has $270M worth of shares while JP Morgan has invested $1.2M.
These disclosures are coming from the Wall Street giants who claimed Bitcoin was a bubble not so long ago. This level of adoption shows how Bitcoin’s fundamentals have pushed the world’s largest players to change their stance. Institutions are now mitigating their reputational risk by not delaying their Bitcoin adoption any further, which could otherwise be deemed unsound from an investment standpoint. On that front, last week Bitcoin ETFs crossed $1B in inflows, the best weekly performance since March, illustrating that Bitcoin adoption is not slowing down since the 13F filings. For instance, on a monthly basis, the ETFs have purchased over 21,700 BTC which is almost three times the new supply coming from miners, in the same time frame, as shown in Figure 2.
Figure 2 – US Bitcoin Spot ETF Flows vs. Bitcoin Block Rewards
Source: 21Shares, Glassnode
Chainlink Continues Powering Tokenization
Chainlink is the leading decentralized oracle network, bridging the gap between blockchains and the external world. While blockchains are powerful, they live in siloed environments, meaning they cannot access information or data that exists off-chain. Chainlink offers an expansive set of Oracle-based services and leverages its Cross-Chain Interoperability Protocol (CCIP) to integrate data from existing external systems across any blockchain securely. For instance, by providing Proof-of-Reserves for traditional assets or executing Verifiable Random Functions to fairly mint NFTs. Chainlink’s innovative solution has enabled over $10T in transactions across 22 separate blockchain networks, showcasing the reach this innovative protocol has on the wider industry.
Last Thursday, the Depository Trust and Clearing Corporation (DTCC), the world’s largest securities settlement system which processed $3 quadrillion in securities in 2023, announced it successfully completed a pilot project in collaboration with Chainlink and major financial institutions such as BNY Mellon and JP Morgan. The project builds upon the existing DTCC Mutual Funds Profile Service I (MFPS I), which serves as the industry standard for transmitting NAV data, such as fund price and rate. The pilot does not affect initial workflows such as calculating fund data, as the focus was to create a standardized way to disseminate fund information across different blockchains. The project is likely to expedite real-world asset tokenization, which has become an increasingly important industry segment, showcased by tokenized government securities growing 10x in assets under management since the start of 2023, from nearly $100M to almost $1.4B.
Figure 3 – Market Landscape of Tokenized Government Securities by Product
Source: 21co on Dune Analytics
Every day, the DTCC’s service oversees the transmission of price and rate data for tens of thousands of mutual fund securities. In the current architecture, the DTCC links funds and service providers to distributors, collecting relevant fund data via a message queue and file-based methods, and finally disseminates them at regular intervals, as shown below.
Smart NAV extends the dissemination capabilities of MPFS I, where in addition to data being sent through existing channels, it is transformed into a modern JSON-based data structure. The newly formatted data is wrapped into a blockchain transaction, signed by DTCC’s private keys, and finally routed to Chainlink’s CCIP, allowing relevant fund data to be sent across almost any blockchain, private or public. Once the fund data is transmitted to these networks, a CCIP based smart contract forwards the data to the Smart-NAV-specific smart contracts responsible for validating permissions and storing data for the interested parties to consume.
The dissemination process highlighted above has an effect on traditional funds, as well as those represented on-chain. For instance, the real-time API sits off-chain and pushes fund data to all those integrated with the service. As soon as the relevant data is available, the API can be queried for both real-time and past information, which is impossible with the current MPFS I service. This distinction is crucial, as while the solution is inherently blockchain-based, it can clearly benefit participants who are not yet exploring tokenizing their funds, by allowing for faster and historical data dissemination. Additionally, Single Fund Consumer Smart Contracts and Bulk Consumer Smart Contracts, allowed participants to simulate tokenized funds, or a grouping of funds, which are instantly enriched with the respective data, as soon as available for the off-chain counterparty. This prevents users needing to store NAV data in a separate database that references the fund itself, thus allowing for a more streamlined tokenization process.
The collaboration between the DTCC and Chainlink represents a significant leap forward in the realm of tokenization. Chainlink’s CCIP abstracts away the need for the DTCC to directly connect to every blockchain network where tokenized funds may live on. This would be difficult for the DTCC to execute alone, given the potential costs and technical nuances that exist across chains. Hence, the use of Chainlink is vital as we envision a cross-chain tokenized landscape. The project presents a glimpse into the future where the process of distributing data is hosted on-chain, allowing for quicker, dynamic and historical distribution, empowering investors to make more informed investments. The project could be taken further to automate workflows, for instance the Bulk Consumer Smart Contract could represent a model portfolio, enabling the respective smart contract to rebalance these automatically. While the project is still young, any developments will be closely monitored, given the effect it would have on the growing industry segment of tokenization.
This Week’s Calendar
Source: Forex Factory, 21Shares
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
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The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
En europeisk försvarsöversikt: Med ökande hot och USAs stöd inte längre garanterat, håller europeiska NATO-medlemmar på att se över sina försvarsstrategier och kraftigt öka militärutgifterna. Efter ett decennium av misslyckande med att nå målet på 2 % av BNP har Europa kollektivt underutnyttjat med uppskattningsvis 850 miljarder euro. Nu, för att återuppbygga och modernisera sina väpnade styrkor, riktar regeringarna denna förnyade investering mot europeiska försvarsföretag – vilket ökar kontinentens strategiska självtillit.
Ett europeiskt försvar
Europa åtar sig att göra seriösa försvarsinvesteringar
Efter årtionden av underutnyttjande, rustar Europa äntligen upp sig. EU har fastställt en försvarsplan på 800 miljarder euro, medan enskilda europeiska NATO-medlemmar – från Polen till Storbritannien – snabbt ökar sina egna militärbudgetar.
Strategisk autonomi innebär att köpa europeiskt
Europas upprustning handlar inte bara om att spendera mer – det handlar om att bygga europeiskt oberoende och självständighet inom försvaret. För att minska beroendet av amerikansk utrustning prioriterar EU europeiskt tillverkade vapen, fordon och system, vilket ger en stark medvind till den europeiska försvarssektorn.
Byggd av Europas ledande ETF-experter för försvar
Denna ETF bygger på HANetfs bevisade framgång inom globala försvarsinvesteringar. Uppbackad av teamet bakom den snabbväxande NATO ETF erbjuder den diversifierad tillgång till Europas försvarssektor – från traditionella försvarsnamn till cybersäkerhet, vilket speglar den moderna krigföringens natur. HANetf är ett europeiskt företag.
Indexmetodik
Med ökande hot och USAs stöd inte längre garanterat, håller europeiska NATO-medlemmar på att se över sina försvarsstrategier och kraftigt öka militärutgifterna. Efter ett decennium av misslyckande med att nå målet på 2 procent av BNP har Europa kollektivt underutnyttjat med uppskattningsvis 850 miljarder euro. Nu, för att återuppbygga och modernisera sina väpnade styrkor, riktar regeringarna denna förnyade investering mot europeiska försvarsföretag – vilket ökar kontinentens strategiska självtillit.
Landsviktningar
Största innehav
Data as of March 31, 2025. Source: VettaFi
Rheinmetall
Rheinmetall, en tyskbaserad försvarsentreprenör, har legat i framkant när det gäller att modernisera NATOs militärer och åtgärda kritiska luckor i europeisk försvarskapacitet. Rheinmetall är känt för sin expertis inom pansarfordon, artillerisystem och ammunition, och har sett en ökning i efterfrågan på grund av ökade Natos försvarsutgifter efter Rysslands invasion av Ukraina.
Att ta itu med geopolitiska spänningar
Rheinmetall har utnyttjat de europeiska NATO-medlemmarnas strävan att nå eller överträffa målet för försvarsutgifterna på 2 procent av BNP. Med många Nato-länder som försöker modernisera sina landstyrkor, har Rheinmetalls erbjudanden, inklusive Leopard 2-stridsvagnsuppgraderingarna och Lynx pansarfordon, varit i hög efterfrågan.
Stark orderbok
Shell produktionskapacitet
BAE Systems
BAE Systems, med huvudkontor i Storbritannien, är en av de största försvarsentreprenörerna globalt och en kritisk leverantör för Natos försvarsinfrastruktur. Med en portfölj som spänner över luft-, hav-, land- och cyberdomäner har BAE Systems varit avgörande för att göra det möjligt för NATO-medlemmar att förbättra sin försvarsförmåga.
Betydande bidrag till luftförsvaret
BAE Systems tillverkar nyckelkomponenter till Eurofighter Typhoon och F-35 LightningII, båda väsentliga för Natos överlägsenhet i luften. Företaget tillhandahåller även avancerade radar- och elektroniska krigföringssystem för att stödja NATO-operationer.
AUKUS ubåtsprogram
Cyber och elektronisk krigföring
Handla ASWC ETF
HANetf Future of Defence UCITS ETF (ASWC ETF) är en europeisk börshandlad fond. Denna fond handlas på flera olika börser, till exempel Deutsche Boerse Xetra och London Stock Exchange. Av den anledningen förekommer olika kortnamn på samma börshandlade fond.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel Nordnet, SAVR, DEGIRO och Avanza.
Kommer snart – en europeisk försvars-ETF, från ett europeiskt företag, utan USA-exponering
Vem ska ha en LEI-kod?
BSE9 ETF bara företagsobligationer med förfall 2029
Crypto’s political tailwinds are blowing hard: Lessons from a week in Washington
SPUT ETC spårar priset på uran
Fonder som ger exponering mot försvarsindustrin
WisdomTree lanserar europeisk försvarsfond.
Warren Buffetts råd om vad man ska göra när börsen kraschar
De bästa börshandlade fonderna för tyska utdelningsaktier
Trumps återkomst får europeiska aktier att rusa
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Nyheter2 veckor sedanFonder som ger exponering mot försvarsindustrin
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Nyheter3 veckor sedanWisdomTree lanserar europeisk försvarsfond.
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Nyheter1 vecka sedanWarren Buffetts råd om vad man ska göra när börsen kraschar
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Nyheter3 veckor sedanDe bästa börshandlade fonderna för tyska utdelningsaktier
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Nyheter3 veckor sedanTrumps återkomst får europeiska aktier att rusa
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Nyheter3 dagar sedanSvenskarna har en ny favorit-ETF
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Nyheter4 veckor sedanUtdelning i XACT Norden Högutdelande mars 2025
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Nyheter2 veckor sedanHANetf lanserar Europa-fokuserad försvars-ETF
