Core Insights - The cryptocurrency market is seeing renewed interest in Bitcoin and altcoins as 2026 begins, with indications that credible altcoins may be gaining traction [1] - The CoinShares Altcoins ETF (DIME) is positioned to benefit from this altcoin momentum, following the CoinShares Compass Index which focuses on higher-tier altcoins [2] Altcoin Market Dynamics - The Altcoin Season Index is nearing 40%, with altcoin market capitalization recovering to $1.3 trillion, suggesting that major altcoins like Solana (SOL) and XRP could outperform Bitcoin [3] - Solana is highlighted as a key player in the altcoin resurgence, expected to benefit significantly from the growth of prediction markets [4] Performance Projections - Solana led all major blockchain networks by revenue in 2025 and is projected to maintain this position in 2026, driven by trends such as prediction markets [5] - The technical outlook for Cardano (ADA) is improving, with potential for DIME components to reach $2 this year, indicating substantial upside from current levels [5] Market Conditions - The emergence of a golden cross in Cardano's price charts signals positive short-term trends, with increased trading volumes and a potential breakout above key resistance levels [6] - Current market conditions resemble those preceding significant altcoin rallies in 2017 and 2021, suggesting a possible activation of a delayed cycle in the upcoming quarters [7]

Core Insights - The competition among crypto platforms is evolving, with different networks establishing dominance in specialized areas rather than one blockchain prevailing overall [1][2] - Investors are encouraged to consider a diversified approach to blockchain exposure, as multiple platforms can coexist and thrive in distinct use cases [2] Ethereum's Institutional Role - Ethereum is solidifying its position as the infrastructure for institutional finance, evidenced by BlackRock's tokenized fund exceeding $550 million and J.P. Morgan's pilot of tokenized deposits on Ethereum's Layer-2 network [3] - The network has processed approximately $40 billion in lending activity through AAVE, ranking it among the top 50 U.S. banks by this metric [4] - Ethereum's Layer-2 throughput has significantly increased from 200 transactions per second a year ago to nearly 4,800 today, showcasing its scalability [4] Solana's Consumer Market - Solana has emerged as a leader in the retail and high-frequency application market, with stablecoin supply increasing from $1.8 billion to $12 billion in 2025, marking a 567% growth [5] - PayPal's PYUSD stablecoin now primarily operates on Solana, highlighting the network's advantages in speed and efficiency for consumer applications [6] Investment Strategy and Fund Structure - CoinShares' Altcoins ETF (DIME) reflects the strategy of diversifying across various Layer-1 blockchains, including Solana, Sui, Aptos, and Avalanche, to capture growth across different verticals [2][7][8] - DIME's portfolio allocates approximately 8.8% of its assets to Solana, emphasizing the importance of basket exposure rather than concentrated investments [7]

Core Viewpoint - Bitcoin is currently trading within a narrow range of $86,500 to $90,000, with recent attempts to break above $90,000 failing, indicating a lack of strong buying demand [1][6]. Market Activity - U.S. trading venues reported a 24-hour BTC spot volume of approximately $34 billion, significantly down from over $70 billion during the peak around October 6, when Bitcoin reached an all-time high of $126,279 [2]. - ETF flows have mirrored price movements, with digital asset products experiencing $446 million in outflows in the week ending December 29, primarily driven by Bitcoin products, which lost $443 million [3]. - On December 29, there was a net outflow of $19.3 million from U.S. spot Bitcoin ETFs, followed by a substantial net inflow of $355 million on December 31, breaking a seven-day outflow streak [4]. Market Sentiment and Positioning - The holiday season has led to reduced trading volumes, with ETF trading volumes dropping to $24 billion during the late-November Thanksgiving week compared to $56 billion the week prior [5]. - The current market positioning suggests a potential reset for January, as Bitcoin remains within the $86,500 to $90,000 range with low realized volatility and mixed ETF flows [6][7]. - Traders are advised to monitor the $86,500 to $90,000 range closely, as a decisive break in this band could set the tone for Q1 risk across crypto markets [8].

Core Insights - Analysts from Bitwise and Bitfinex predict increased adoption of crypto ETFs in 2026, which is expected to drive demand for Bitcoin, Ethereum, XRP, and Solana, potentially leading to new highs for these assets [1][2][9] Group 1: Institutional Demand and ETF Supply - Bitwise forecasts that ETFs will purchase more than 100% of the new supply for Bitcoin, Ethereum, and Solana as institutional demand accelerates [2][9] - The estimated new supply hitting the market in 2026 includes 166,000 BTC valued at $15.3 billion, 960,000 ETH valued at $3 billion, and 23 million SOL valued at $3.2 billion [4] Group 2: Market Trends and Adoption - 2026 is anticipated to be a pivotal year for institutional investors gaining access to crypto ETFs, with major firms like Morgan Stanley and Vanguard recently approving ETF access for retail investors [3] - The assets under management (AUM) for crypto ETPs are projected to exceed $400 billion by the end of 2026, indicating a significant surge in AUM for crypto ETFs [7][9] - Current AUM for these ETPs is just over $200 billion, with expectations of it doubling as institutional adoption deepens [8] Group 3: XRP ETF Performance - XRP ETFs have shown impressive demand since their launch, with U.S. XRP spot funds recording $1.07 billion in inflows, while BTC funds have seen $2.8 billion in outflows during the same period [6][9]

Core Insights - The SEC has established criteria for digital assets to be eligible for commodity-based trusts, requiring them to trade on surveilled markets and have a six-month history of futures trading [1][2] - The approval of generic listing standards for commodity-based trusts is expected to significantly increase the number of available ETF products for investors [8] ETF Market Dynamics - Spot Ethereum ETFs have seen $12.6 billion in net inflows since their launch, with a peak inflow of $1 billion in a single day as Ethereum approached an all-time high [4] - Spot Bitcoin ETFs generated $57.7 billion in net inflows since their debut in January 2024, marking a 59% increase from $36.2 billion at the beginning of the year [6] - Investors invested $1.2 billion into spot Bitcoin ETFs on October 6, as Bitcoin neared an all-time high above $126,000, but withdrew $900 million when the price fell below $90,000 on November 11 [5] Emerging Cryptocurrencies - ETFs tracking XRP and Solana have been introduced, with XRP generating approximately $883 million and Solana $92 million in net inflows since their respective launches [13][11] - The debut of Solana ETFs was notable for sharing staking rewards with investors, following new guidance from the U.S. Treasury Department and IRS [13] Institutional Interest - Vanguard plans to allow its 50 million customers to trade some spot crypto ETFs, indicating a shift in institutional interest towards crypto assets [16] - The transition from retail to institutional investors is seen as beneficial for the long-term sustainability of the asset class, potentially leading to reduced volatility [22] Index ETFs - Hashdex launched the first spot ETF tracking multiple digital assets in the U.S., which holds various cryptocurrencies, including Cardano and Chainlink [17] - A group of index ETFs now offers exposure to 19 digital assets, with several asset managers debuting similar products [18]

Core Insights - The NFT market has experienced a dramatic decline, with its cumulative market cap dropping 99% from a peak of $184 billion in 2023 to just $487 million in 2025 [2] - Major NFT marketplaces like OpenSea and Magic Eden are adapting by expanding their offerings to include fully fungible tokens, responding to a slowdown in pure NFT activity [2][3] Company Developments - OpenSea announced a complete rebuild of its platform in February 2025, introducing cross-chain token trading through its decentralized exchange (DEX) [3][4] - The new platform, OS2, allows token trading across 19 blockchains and features a new rewards system called "Voyages," which may be linked to the anticipated launch of its SEA token [4] - In October 2025, OpenSea achieved a monthly DEX volume of $2.41 billion, although this was followed by a significant drop of 75% to $581.48 million in November [5] Market Comparisons - OpenSea's trading volumes are significantly lower compared to industry leaders like Uniswap, which generated nearly $80 billion in monthly volume in November [6] - Magic Eden has also expanded into non-NFT trading by acquiring the meme coin trading app Slingshot, but it downplays the significance of token trading in its overall business [6][7]

Core Insights - The CoinShares Altcoins ETF (DIME) offers investors an equally weighted exposure to blockchain networks that are increasingly becoming the infrastructure for traditional finance [1] Group 1 - The ETF is designed to capitalize on the growing integration of blockchain technology within the financial sector [1] - DIME aims to provide a diversified investment option by including various altcoins that support blockchain networks [1] - The product reflects a strategic move by CoinShares to enhance its offerings in the evolving cryptocurrency market [1]

RT CoinDesk Podcast Network (@CoinDeskPodcast)🎧 Catch the latest episode of 'THE MINING POD,’ in partnership with @blockspace!THE MINING POD:The Year of the Bitcoin ETF w/ Jean-Marie MognettiJean-Marie Mognetti, CEO of CoinShares, joinsThe Mining Pod to talk about the financialization of Bitcoin following the ETF launches.Notes:* EU ETF market 10x smaller than US* Bitcoin futures in backwardation* Spot liquidity is currently thin* Options market suppressing volatility* US dominates global crypto trading* So ...

Core Insights - Crypto investment funds experienced significant outflows of approximately $952 million in a single week, attributed to delays surrounding the U.S. "Clarity Act" and broader policy uncertainties [1][2] - This trend reflects ongoing concerns regarding U.S. regulation and macroeconomic policies impacting confidence in major cryptocurrencies like Bitcoin and Ethereum [1][3] Fund Outflows - CoinShares reported net outflows of $952 million from crypto exchange-traded products (ETPs) and funds globally, linked to regulatory delays and policy fears [2] - Previous outflows included around $508 million due to tariff and monetary policy concerns, and a notable $2 billion outflow during a period of macroeconomic fear and significant selling by large investors [3] Market Behavior - Crypto funds and ETPs function as "crypto wrappers" for traditional brokerage accounts, allowing investors to buy shares instead of directly purchasing cryptocurrencies [4] - The substantial outflows indicate heightened nervousness among institutional investors regarding regulatory and political developments [4][5] Regional Trends - U.S.-based products typically experience the most significant outflows during periods of stress, while some regions like Germany and Canada may see modest inflows, indicating a divergence in market reactions [6] - Bitcoin and Ethereum are often the first assets sold during regulatory uncertainty, as they are the most liquid and established, allowing for quicker exits without significantly impacting prices [7]

Core Viewpoint - The price of bitcoin could exceed $170,000 by 2026 if the Federal Reserve loses control of the economy and resorts to aggressive stimulus measures, according to CoinShares' latest outlook report [1] Scenario Summaries - The base case scenario predicts bitcoin trading between $110,000 and $140,000 during a slower economic expansion, characterized by subdued growth, persistent inflation, and cautious Fed rate cuts [2] - In the bull case, bitcoin could rise above $150,000 if inflation decreases steadily and AI-related productivity gains enable the Fed to implement more decisive rate cuts [3] - The bear case presents two outcomes: in a recession where the Fed cannot respond quickly, bitcoin may initially fall but could rebound past $170,000 as aggressive easing is interpreted as the Fed losing control [4] - A stagflation scenario, combining weak growth with rising inflation, could see bitcoin drop to the $70,000–$100,000 range due to ETF outflows [5] Investment Opportunities - Investors can gain exposure to bitcoin and ether futures through the CoinShares Bitcoin & Ether ETF (BTF), which currently holds $14.5 million in assets and has seen net inflows of $913,570 over the past month [6] - BTF invests in CME bitcoin and ether futures contracts, as well as treasuries, corporate bonds, and cash, rather than holding digital assets directly, with a 1.25% expense ratio [7] - Beyond the cyclical dynamics of 2026, the gradual decline in dollar reserve dominance is expected to provide a long-term structural tailwind for cryptocurrencies as central banks diversify away from single-currency dependence [7]