CoinShares Asset Management SAS @Napoleon-X: "Dear investors, ⏰ It’s time for..."

Smart Portfolio

Dear investors, ⏰ It’s time for our weekly commentary! 📊 2025 may ultimately be remembered as the year real-world asset (RWA) tokenization entered the mainstream. While the market is still in its early stages, adoption continues to grow steadily and the pace of development is accelerating across both public and private markets. So far, the largest segment remains tokenized money market funds, primarily used to bring yield-bearing collateral to stablecoin ecosystems.Beyond fixed income, tokenized commodities already represent roughly $8bn in assets, while tokenized equities, still only around $1bn today, are beginning to gain traction. Perhaps even more important is the emergence of tokenized vaults as on-chain investment wrappers. These could become the funds of tomorrow: programmable vehicles allowing investors to subscribe and redeem 24/7, with instant settlement, global distribution, and significantly lower operating costs than traditional fund structures. While most products are still under development, interest from major asset managers is clearly strong. As our Chart of the Week highlights, $ETH currently dominates the RWA landscape with more than 60% market share. However, competition is intensifying. $BNB Chain, $XRP Ledger, and $SOL have all posted materially faster growth rates in recent quarters, reflecting increasing demand for cheaper, faster, and more specialized execution environments. The key question for the coming years is which blockchains will capture the next wave of institutional adoption, and whether Ethereum can maintain its early lead as the market scales. 🎯 Our portfolio is down 0.88% over the past 7 days and 3.18% over the past 30 days. Markets continued to consolidate last week, caught between the optimism surrounding AI-driven growth and mounting geopolitical tensions in Iran. For now, investors appear to believe that meaningful progress has been made diplomatically and that a relatively swift resolution remains possible. However, the longer uncertainty persists, the greater the risk that the conflict translates into a tangible inflationary shock. At the same time, the market narrative around AI remains heavily dependent on massive capital expenditure cycles that themselves require critical resources and supply-chain stability, including strategic materials such as helium and rare industrial inputs. In other words, the disinflationary “AI productivity boom” and the inflationary pressures from geopolitics are increasingly colliding. Against this backdrop, discussions around monetary policy are beginning to shift. Calls for rate hikes are quietly re-emerging in some circles, even as Kevin Warsh, newly appointed Chair of the Federal Reserve, appears to favor a very different framework. Warsh argues that the Fed effectively has two policy tools: interest rates and balance sheet management. While interest rates impact the entire economy, balance sheet expansion disproportionately supports financial assets and equity valuations. His preferred approach would therefore be to lower short-term rates aggressively while simultaneously shrinking the Fed’s balance sheet. By selling assets and draining liquidity, the Fed could maintain upward pressure on long-term yields and contain inflation, without keeping policy rates structurally high. For crypto markets, this may not initially be the most supportive environment. However, the longer-term implication could prove far more constructive: if the economy eventually slows while policy rates are already near the lower bound, the Fed would have limited room to stimulate through conventional rate cuts. In that scenario, balance sheet expansion and renewed liquidity injections would once again become the primary policy lever, a dynamic that has historically been highly supportive for digital assets. Thank you for your support 🙏 $CSHR $BITC.DE (CoinShares Bitcoin ETP)

Not investment advice. The author may have financial interests in the mentioned instruments.