Long silver and palladium ETPs see over US$41mn of inflows as investors build positions in the more industrially-oriented precious metals.
Inflows into Long WTI ETPs reach 5-month high, totalling US$31mn, as shrinking stockpiles buoy price.
Investors favour diversified agriculture exposure, with sowing season fast approaching.
ETFS Coffee (COFF) ETP sees the 9th consecutive week of outflows on expectations of rain in Brazil.
Profit-taking prompts US$5.1mn out of ETFS Nickel (NICK).
Note: All flow and AUM data in this report are based on ETF Securities ETPs to 27 March 2014 and are denominated in USD unless otherwise indicated. FOR INVESTMENT PROFESSIONAL USE ONLY, NOT FOR PUBLIC DISSEMINATION – PAST PERFORMANCE DOES NOT GUARANTEE RESULTS.
Robust economic data from the US prompted investors to move into more cyclical assets last week, with the more industrially linked precious metals, particularly silver and palladium seeing strong demand. WTI oil also saw rising demand on falling US stocks. The US recovery seems to be regaining its footing, with the weather induced slowdown earlier in 2014 appearing to be an aberration. Palladium has also benefited from continued mine shutdowns in South Africa. Cyclical assets should continue to outperform following this soft patch, with gold still likely to be one of the best hedges against the risk this benign consensus scenario proves wrong.
Long silver and palladium ETPs see over US$41mn of inflows as investors build positions in the more industrially-oriented precious metals. Last week the price of gold fell to its lowest level since the beginning of February as the US dollar strengthened following robust US data and follow-on buying following Yellen’s more hawkish than expected post-FOMC comments. Expectations of a rate hike earlier than originally foreseen also contributed to the negative momentum, prompting US$18mn of outflows from long gold ETPs. While gold and silver correlations remain historically high, silver could decouple if industrial demand rebounds strongly. Both platinum and palladium have benefitted in 2014 from South African miner strikes and potential supply disruptions in Russia on the back of the Crimean crisis. With the strikes now entering their 10th week and over 800,000 ounces (14%of global supply) of platinum production lost, platinum and palladium should be in a good position to benefit from an unexpectedly tight market.
Inflows into Long WTI ETPs reach 5-month high, totalling US$31mn, as shrinking stockpiles buoy price. We expect the WTI-Brent crude spread will continue to narrow as the upcoming US driving season boosts US oil demand, in turn lifting the WTI price while a reduction in the geopolitical risk premium puts downward pressure on Brent.
Investors favour diversified agriculture exposure, with sowing season fast approaching. ETFS Agriculture (AIGA) and ETFS Grains (AIGG) received combined inflows for US$11.7mn last week, the largest in almost a year. Drought and irregular weather patterns have sent the price of grains and soft commodities higher this year. In recent weeks meteorologists have raised the probability of an El Niño event taking place later this year. El Niño has the reputation for being a powerful catalyst to driving weather extremes such as floods and droughts in different parts of the world, in turn impacting crop production.
ETFS Coffee (COFF) ETP sees the 9th consecutive week of outflows on expectations of rain in Brazil. COFF has seen over US$100mn of outflows over the past 9 weeks, as rains aided drought parched coffee crop growth. The Arabica coffee price plummeted to the lowest level in almost a month last week, as more precipitation is expected in Brazil over the next few days. Although the damage to this year’s crop in Brazil could lead to a supply deficit, the stock overhang from last year’s bumper harvest is ample.
Profit-taking prompts US$5.1mn out of ETFS Nickel (NICK). Nickel price has jumped almost 9% over the past month on Indonesia’s ore export ban and fears of trade sanctions to be imposed against Russia. With Russia and Indonesia accounting for over 34% of nickel concentrate production, supply disruptions are likely to continue to support the nickel price.
Key events to watch this week. This week the focus will likely be on the ECB rate decision, although most analysts expect the central bank to leave monetary policy unchanged. A number of manufacturing PMIs will also be released this week, with China and the US likely to be watched carefully. US non-farm payrolls will conclude the week and will be fundamental to assess the timing of the Fed tapering and rate hike.
Important InformationGeneral
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.
Franklin MSCI World Catholic Principles UCITSETF USD Capitalisation (FLXA ETF), ISIN IE000AZOUN82, försöker spåra MSCI World Select Catholic Principles ESG Universal och Low Carbon-index. MSCI World Select Catholic Principles ESG Universal och Low Carbon Index spårar stora och medelstora värdepapper från utvecklade länder över hela världen. De utvalda företagen screenas enligt deras koldioxidexponering, deras ESG-profil (miljö, social och styrning) och katolska principer. Som ett resultat är företag som är involverade i vapen, hasardspel, vuxenunderhållning, abort, preventivmedel, stamcellsforskning och djurförsök uteslutna.
Den börshandlade fondens TER (total cost ratio) uppgår till 0,27 % p.a. Franklin MSCI World Catholic Principles UCITSETF USD Capitalization är den enda ETF som följer MSCI World Select Catholic Principles ESG Universal och Low Carbon-index. ETFen replikerar det underliggande indexets prestanda genom fullständig replikering (köper alla indexbeståndsdelar). Utdelningarna i ETFen ackumuleras och återinvesteras.
Franklin MSCI World Catholic Principles UCITSETF USD Capitalization är en liten ETF med tillgångar på 34 miljoner euro under förvaltning. Denna ETF lanserades den 24 april 2024 och har sin hemvist i Irland.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest, SAVR och Avanza.
2024 was a landmark year for bitcoin, solidifying its role as a fully institutionalised asset class.
Institutional inflows into physical bitcoin exchange-traded products (ETPs) reached nearly $35 billion globally, signalling a major shift in how traditional investors view crypto. As bitcoin continued to enhance portfolios’ risk-return profiles, more institutional investors followed suit, reshaping the financial landscape.
Looking ahead, 2025 promises to bring exciting developments across the crypto ecosystem. Here are the top five crypto trends to watch.
Fear of being left behind
The era of bitcoin as a niche investment is over. Institutional adoption is creating a ripple effect, forcing hesitant players to reconsider. Portfolios with bitcoin allocations are consistently outperforming those without, highlighting its growing importance.
Source: Bloomberg, WisdomTree. From 31 December 2013 to 30 November 2024. In USD. Based on daily returns. The 60/40 Global Portfolio is composed of 60% MSCI All Country World and 40% Bloomberg Multiverse. You cannot invest directly in an index. Historical performance is not an indication of future performance and any investment may go down in value.
With bitcoin’s ability to noticeably improve portfolios’ risk-return profiles, asset managers face a clear choice: integrate bitcoin into multi-asset portfolios or risk falling behind in a rapidly evolving financial landscape. In 2025, expect the competition to heat up as clients demand exposure to this powerhouse cryptocurrency.
Expanding crypto investment options
In 2024, regulatory breakthroughs opened the doors for physical bitcoin and ether ETPs in key developed markets. This marked a critical step towards making cryptocurrencies mainstream, providing seamless access to institutional and retail investors alike.
Figure 2: Global physical crypto ETP assets under management (AUM) and 2024 net flows
Source: Bloomberg, WisdomTree. 02 January 2025. Historical performance is not an indication of future performance and any investment may go down in value.
In 2025, this momentum is expected to accelerate as the crypto regulatory environment becomes more friendly in the United States and as key developed markets follow Europe’s lead and approve ETPs for altcoins such as Solana and XRP. With their clear utility and growing adoption, these altcoins are strong candidates for institutional investment vehicles.
This next wave of altcoin ETPs will expand the diversity of crypto investment opportunities and further integrate cryptocurrencies into the global financial system.
The maturing of Ethereum’s layer-2 ecosystem
Ethereum’s role as the backbone of decentralised finance (DeFi), non-fungible tokens (NFTs), and Web3 is unmatched, but its scalability challenges remain a hurdle. Layer-2 solutions—technologies such as Arbitrum and Optimism—are transforming Ethereum’s scalability and usability by enabling faster, cheaper transactions.
In 2025, Ethereum’s recent upgrades, such as Proto-Danksharding (introduced in the ‘Dencun’ upgrade), will drive layer-2 adoption even further. Innovations like Visa’s layer-2 payment platform leveraging Ethereum for instant cross-border transactions will underscore the platform’s evolution.
Expect Ethereum’s layer-2 ecosystem to power real-world use cases ranging from tokenized assets to decentralised gaming, positioning it as the infrastructure of a truly scalable digital economy.
Stablecoins: bridging finance and blockchain
Stablecoins are becoming indispensable to the global financial system, offering the stability of traditional assets with the efficiency of blockchain. Platforms such as Ethereum dominate the stablecoin landscape, hosting stablecoin giants Tether (USDT) and USD Coin (USDC), which facilitate billions in daily transactions.
Figure 3: Key stablecoin chains
Source: Artemis Terminal, WisdomTree. 05 January 2025. Historical performance is not an indication of future performance and any investment may go down in value.
As we move into 2025, stablecoins will increasingly interact with blockchain ecosystems such as Solana and XRP. Solana’s high-speed, low-cost infrastructure makes it ideal for stablecoin payments and remittances, while XRP Ledger’s focus on cross-border efficiency positions it as a leader in global settlements. With institutional adoption rising and DeFi applications booming, stablecoins will serve as the backbone of a seamless, interconnected financial ecosystem.
Tokenization: redefining ownership and revolutionising finance
Tokenization is set to redefine how we think about ownership and value. By converting tangible assets like real estate, commodities, stocks, and art into digital tokens, tokenization breaks down barriers to entry and creates unprecedented liquidity.
In 2025, tokenization will expand dramatically, empowering investors to own fractions of high-value assets. Platforms such as Paxos Gold and AspenCoin are already showcasing how tokenization can revolutionize markets for gold and luxury real estate. The integration of tokenized assets into DeFi will unlock new financial opportunities, such as using tokenized real estate as collateral for loans. As tokenization matures, it will transform industries ranging from private equity to venture capital, creating a more inclusive and efficient financial system.
For the avoidance of any doubt, tokenization complements crypto by expanding the use cases of blockchain to include real-world applications.
Looking ahead
2025 is set to be a defining year for crypto, as innovation, regulation, and adoption converge. Whether it is bitcoin cementing its position as a portfolio staple, Ethereum scaling for mainstream use, or tokenization unlocking liquidity in untapped markets, the crypto ecosystem is poised for explosive growth. For investors and institutions alike, the opportunities have never been clearer or more compelling.
This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
Fidelity Sustainable Research Enhanced Global Equity UCITSETFAcc (FGLR ETF) med ISIN IE00BKSBGV72, är en aktivt förvaltad ETF.
Denna ETF investerar i aktier från utvecklade marknader över hela världen. Värdepapper väljs ut enligt hållbarhet och grundläggande kriterier.
Den börshandlade fondens TER (total cost ratio) uppgår till 0,25 % p.a. Fidelity Sustainable Research Enhanced Global Equity UCITSETFAcc är den enda ETF som följer Fidelity Sustainable Research Enhanced Global Equity-index. ETFen replikerar det underliggande indexets prestanda genom fullständig replikering (köper alla indexbeståndsdelar). Utdelningarna i ETFen ackumuleras och återinvesteras.
Fidelity Sustainable Research Enhanced Global Equity UCITSETFAcc är en liten ETF med tillgångar på 45 miljoner euro under förvaltning. Denna ETF lanserades den 27 maj 2020 och har sin hemvist i Irland.
Investeringsmål
Fonden strävar efter att uppnå långsiktig kapitaltillväxt från en portfölj som huvudsakligen består av aktier i företag med säte globalt.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest, SAVR och Avanza.