ETFs: “Almost everything is in demand for cryptos”

New elections in Germany still without effect

There is “significantly less going on” in the Asia/Emerging Markets and Europe/Germany regions. According to Puschmann, there is currently “no region that stands out in particular”. What is striking about the German market is that while the DAX is “doing a bit well”, the other indices, particularly the second-line stocks segment, are in the doldrums. This has been a trend for some time. The possible change of policy in Germany following the new elections in February has not yet been able to rekindle investor interest, especially abroad.

“The highest inflows of all time”

Trading in crypto ETNs is really buzzing. According to an analysis by CoinShares, investment products for digital assets recorded the highest inflows of all time last week, totaling 3.13 billion dollars. As a result, inflows have risen to a record 37 billion dollars since the beginning of the year. Ivo Orlemann from ICF Bank also sees “buying across the board”, although there was also “some profit-taking”. “The strong price movements in the crypto sector meant that we also had the most turnover in this area,” explains the trader.

Bitcoin, which rose to almost 100,000 dollars on Friday evening, was at the forefront. While the VanEck Bitcoin (DE000A28M8D0) and the WisdomTree Physical Bitcoin (GB00BJYDH287) were traded at ICF, the ETC Group Physical Bitcoin (DE000A27Z304) was the focus of attention among Lang & Schwarz clients. The great interest in Solana ETNs is also striking. The price of this cryptocurrency has almost doubled at its peak since the US election. Both Orlemann and Puschmann report brisk trading in 21Shares Solana Staking (CH1114873776).

“An extreme amount of business on both sides”

However, other assets in this segment are also in demand. “There is demand for almost everything and we have a lot of business on both sides,” explains Puschmann. The picture is the same at ICF Bank. In addition to ETNs on Ripple (CH0454664043) and Polkadot (CH0593331561), investors are also buying the VanEck Crypto Leaders (DE000A3GWEU3) and the VanEck Crypto and Blockchain Innovators (IE00BMDKNW35). 

Commodity ETNs with leverage effect in demand

In the commodities sector, precious metals gold and silver are increasingly being traded at Lang & Schwarz. Puschmann is again reporting turnover “on both sides”. Clients like to use triple-leveraged products such as the WisdomTree Gold 3x Daily Leveraged (IE00B8HGT870).

In agricultural commodities, trading in coffee and cocoa has “picked up a little on the buy side”. Here, too, leverage is increasingly being used, as evidenced by demand for the WisdomTree Cocoa 2x Daily Leveraged (JE00B2NFV803). The ETC has risen by around 60 percent in the current month. The reason for the rising cocoa price is uncertainty about the harvest forecasts in the major producing countries in West Africa.

By Thomas Koch, 26 November 2024, © Deutsche Börse