Silver and oil ETPs experience outflows as investors take profit on recent gains.
Gold’s strong gains see prior weeks’ outflows largely reversed.
Investors remain optimistic that platinum’s solid fundamentals will continue to drive the price rally.
Silver prices gain 13.5% in past month driving strongest profit-taking since September 2014. Silver ETPs outflows totalled US$80.7mn last week as the silver price played catch-up with gold over the past month. The gold:silver ratio has fallen from 84 in January to 72 last week. However, the ratio still remains elevated compared to its historic average of less than 60 over the past decade, indicating further catch-up potential. Over 55% of the metal’s demand comes from industrial applications and we believe a cyclical upturn bodes well for silver.
Gold ETP inflows totalled US$52.1mn, partially offsetting the previous week’s outflows. Profit-taking from the previous week appeared premature, after gold has surged to US$1300/oz today (from US$1233/oz a week earlier). Last week’s gains reflected the still dovish rhetoric from the US Federal Reserve and investors’ waning faith in Japan’s economic management. Futures market speculative positioning in gold has risen 2 standard deviations above its 5-year history, up from 2 standard deviations below its 5-year history in December 2015.
Platinum inflows reach the highest level since November 2014. After lacklustre flows in the prior four weeks, investors appear to have become more optimistic on platinum with US$43.2mn of inflows. The metal is likely to go into a supply deficit for the fifth consecutive year as mine investment remains constrained and demand for the metal increases with rising emission standards (the main source of demand for the metal is in pollution abatement equipment).
Third consecutive week of outflows from oil ETPs as Brent gains 8.1% in a week. As US output continues to decline and OPEC output growth nears its limits, oil prices gained. In its “Vision 2030” plan, Saudi Arabia has articulated that it wants its economy to be less reliant on oil. If the country follows through with its plans, the country may not seek to expand production capacity as aggressively as it has done in the past, possibly limiting the amount of oil that is likely to be extracted from the country. Electricity outages, hyperinflation and forced worker holidays could see oil outages pick up in Venezuela, limiting supply in the short term.
A 4.1% dip in wheat prices drove US$5.2mn of bargain-hunting related buying. US winter wheat is progressing well and the current condition of the wheat appears better than this time last year, driving the price down last week. Investors have been attracted by the lower price and last week’s flow were the largest since July 2015.
Key events to watch this week. The US labour market will be the highlight in data releases next week. In 5 out of the last 6 months, there have been more than 200,000 additions to the jobs market and consensus expectations are for a healthy payroll number in April too. Despite the Fed’s dovish rhetoric, robust core inflation and strength in the labour market should alert investors to the prospect of interest rate increases later this year.
Video Presentation
Nitesh Shah, Research Analyst at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.
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ETF Securities Research team ETF Securities (UK) Limited T +44 (0) 207 448 4336 E info@etfsecurities.com
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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.