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

Smart Portfolio

Dear investors, ⏰ It’s time for our weekly commentary! 📊 Equity markets remain buoyant, driven by the ongoing AI-led rally. US equities have just recorded their longest winning streak since 1985, while equity skew remains exceptionally low, suggesting investors see little need for downside protection. Meanwhile, bond markets are increasingly focused on geopolitical risks, particularly the prolonged disruption of traffic through the Strait of Hormuz. The longer this persists, the greater the risk of inflationary pressures through higher energy prices, shipping costs, LNG disruptions, and shortages of key industrial inputs. Market expectations are therefore shifting away from rate cuts and toward the possibility of renewed tightening. Against this backdrop, the 30-day correlation between the S&P 500 and the US 2-year Treasury yield has fallen to unusually low levels, as shown in our Chart of the Week. Historically, such divergences rarely persist for long. Bitcoin is also coming under pressure again. ETF flows have turned notably negative over the past two weeks, likely reflecting either the repricing of rate expectations or a rotation into AI-related equities. It is also worth noting that the next Federal Reserve Chair may prefer balance sheet reduction over further rate hikes. This distinction matters: in the next recession, the Fed could ultimately be forced back toward liquidity injections and quantitative easing. Above a certain debt threshold, central banks have limited room to raise rates without risking financial instability, a dynamic currently visible in Japan. 🎯 Our @Napoleon-X portfolio is down 2.55% over the past 7 days and 2.1% over the past 30 days. Exposure has been reduced last week by 30%, in line with our new process which implies smoother but more frequent interventions. The cut comes from trend following signals deactivating. A number of warning signs remain in place: a contracting USDT supply, increasingly speculative behaviour in certain segments of the equity market combined with unusually low skew (although conditions are not yet extreme), and ongoing geopolitical tensions. 🔎 What happened last week: 👉 Nathan Allman, founder and CEO of Ondo Finance, passed away unexpectedly on 25 May 2026 at age 32. No cause of death was disclosed. Allman founded the firm in 2021 after working on Goldman Sachs's digital assets desk, growing it into one of the leading tokenised real-world asset platforms with $3.5B in total value locked and products including USDY, OUSG, and Ondo Global Markets. Ian De Bode, who had served as president for over two years, has assumed the role of CEO with immediate effect. 👉 The Ethereum Foundation has faced mounting criticism following at least nine senior departures since January 2026, five of them in May alone. Critics have accused the organisation of becoming insular and disconnected from the increasingly competitive blockchain landscape. Vitalik Buterin broke his silence in late May, stating that the Foundation would adopt a narrower mandate centred on censorship resistance, openness, privacy, and security (CROPS), reduce ETH sales, and progressively reduce his own influence as the board expands. Former researcher Dankrad Feist has separately proposed a rival $1B ETH-aligned organisation to fill what he described as a strategic gap. 👉 SoFi Technologies launched SoFiUSD on 27 May 2026, becoming the first US national bank to make a bank-issued stablecoin available directly within a consumer banking app. The token is redeemable 1:1 for US dollars, backed by liquid assets, and runs on Ethereum and Solana. SoFi's nearly 15 million members can now buy, sell, hold, and convert SoFiUSD within the SoFi app. Upcoming phases of the roadmap include FDIC-insurable tokenised deposits, 24/7 cross-border transfers, and a listing on institutional exchange Bullish. Thank you for your support 🙏 $CSHR $BITC.DE (CoinShares Bitcoin ETP)

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

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