Investment Professionals

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Powered by 21Shares This Week in Crypto The overall sentiment for the cryptoassets industry is still in shock from the market correction that happened over the past few weeks. The macro factors driving the markets are a by-product of the Russian invasion of Ukraine and China’s COVID Zero policy combined, with the Federal Reserve’s latest interest rate hike adding fuel to the fire. Food prices have gone up 37% year-over-year, spurring protests in Sri Lanka and Iran. However, panic selling seems to be coming to an end; large investors, such as MicroStrategy, are still holding on to their crypto holdings. Bitcoin is down by 13%, trading between $33K and $29K over the past week, shrinking its market cap dominance to 42.4% as shown in Figure 1. Ethereum is down by 20%, trading between $2,423 and $2,013. On the upside, the top gainers out of last week’s rally were Cosmos, Solana, and Cardano. Major Cryptoassets by Percentage of Total Market Capitalisation ...
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Thematic ETFs had a rough first quarter, falling as much, or more than global share market gauges like the MSCI World Index. The slow start follows two strong years in 2020 and 2021, where several thematics provided strong outperformance. Biotech in many ways exemplifies this reversal of fortunes. After being the best performing sector in 2020, thanks to coronavirus vaccine development, the sector fell 40% in the 12 months to Q1. While the causes of underperformance vary between funds, common roots include the Russian invasion of Ukraine, which threatens supply chains. And the Federal Reserve’s hawkish stance, which has put a dampener on growth companies. Below we look at each thematic in more detail. ETFS Hydrogen ETF (HGEN) HGEN fell 11.5% in Q1, thanks to rising interest rates and Senator Manchin vetoing US subsidies for clean hydrogen. HGEN is especially sensitive to higher discount rates as the majority (16 out of 30) of the companies it holds are loss-making. While HGEN’s performance is negative this year, in March, HGEN rallied 12.8% on a more dovish Fed). ...