Core Insights - The Schwab report categorizes the crypto market into three sectors, highlighting that most value is concentrated in foundational blockchains like Bitcoin and Ethereum [1][2] Group 1: Market Structure - The crypto market is divided into three layers: foundational networks (Bitcoin and Ethereum), infrastructure (software connecting blockchains), and products (exchanges and lending platforms) [2][3][4] - Foundational networks account for nearly 80% of the total crypto market cap, which is $3.2 trillion as of the end of 2025 [2] - Infrastructure software faces challenges due to low user interaction and ease of switching to competitors, impacting their business models [3] Group 2: Product Dynamics - Products in the crypto space, such as exchanges and lending platforms, have more loyal users and higher switching costs, making them more likely to become industry standards [4] - Examples of successful products include Aave for crypto lending and Lido for staking, although specific investment recommendations are not provided [4] Group 3: Comparative Analysis - The report draws parallels between the crypto market and the traditional software industry, likening foundational networks to cloud computing platforms like AWS and Microsoft Azure [5] - Products are compared to user-interactive software like Salesforce or Netflix, while infrastructure software is seen as less capable of commanding loyalty and pricing power [6] Group 4: Investment Framework - Schwab introduces a framework for evaluating cryptocurrencies based on four criteria: network effects, market share, scalability, and tokenomics [7] - Ethereum is highlighted as a case study, leading the smart contract sector with over 10 times the market share of its closest competitor, but facing concerns over transaction speeds and ownership concentration [8]

Core Viewpoint - 21shares, in collaboration with A&G Banco, has launched the 21shares Flexible Crypto Index ETP (FLEX), aimed at providing diversified and risk-adjusted exposure to leading digital assets through a single ETP [1]. Product Overview - FLEX is designed to offer structured exposure to the most liquid and established cryptocurrencies while minimizing concentration risk and adapting to market conditions [3]. - The ETP tracks the 21Shares Flexible Crypto Index, developed with MarketVector Indexes™, which selects cryptoassets based on size, liquidity, and regulatory criteria [4]. - A&G Banco's proprietary model determines portfolio allocation using a minimum-variance framework and positive momentum signals, optimizing the risk-return profile of the crypto ecosystem [4]. Risk Management Features - FLEX includes a built-in risk management framework that allows for up to 30% of the portfolio to be allocated to cash via USDC, enhancing defensive positioning during market volatility [5]. - This tactical cash allocation enables the strategy to remain agile and capture growth opportunities when market conditions stabilize [5]. Strategic Collaboration - The launch of FLEX combines 21shares' expertise in crypto ETP infrastructure with A&G Banco's quantitative investment knowledge, targeting regulated advisory frameworks in private banking and wealth management across Europe [5][6]. - The product is fully physically backed and supported by 21shares' institutional-grade custody infrastructure, marking a significant advancement in the professionalization of crypto investing in Europe [7]. Market Demand - There is a growing demand from investors for diversified, systematic crypto exposure that aligns with institutional risk standards, which FLEX aims to address [6]. - The allocation model of FLEX reflects how professional investors manage risk in volatile markets, combining minimum-variance construction, momentum signals, and a dynamic cash component [7]. Company Background - 21shares AG is a leading provider of cryptocurrency ETPs, with a mission to bridge traditional finance and decentralized finance, having launched the first physically-backed crypto ETP in 2018 [10]. - A&G Banco, founded in 1987, is a prominent independent financial services group managing over 17 billion euros as of December 2025, with a strong track record in wealth advisory and asset management [11].

Core Viewpoint - Geopolitical tensions and diverging interest rates are creating money-making opportunities in the financial markets for the upcoming year [1][2]. Group 1: Market Conditions - U.S. President Donald Trump's return and erratic trade policies have caused significant fluctuations in global markets [2]. - Rising market volatility is attributed to geopolitical events and upcoming elections, presenting investment opportunities [2]. Group 2: Investment Strategies - The Abu Dhabi Investment Council's chief investor favors macro strategies and long volatility approaches, with a hedge fund portfolio up 13% this year [3]. - Macro and trend hedge funds performed exceptionally well in 2022, with some returning over 40% as stock markets fell more than 20% [3]. Group 3: Hedge Fund Insights - Man Group's CEO emphasizes that volatility and dispersion in asset prices provide good trading opportunities [4]. - Brevan Howard's CEO anticipates an increase in asset value dispersion in global markets, highlighting the ongoing geopolitical tensions [5]. Group 4: Opportunities in Interest Rates and Cryptocurrencies - There are significant opportunities in the differing values of global interest rates and cryptocurrency investments, despite their volatility [6].

Core Insights - The CoinShares Valkyrie Bitcoin Miners ETF (WGMI) offers a way for investors interested in bitcoin to gain exposure without direct investment in cryptocurrencies, focusing on bitcoin mining companies [1][3][5] Investment Strategy - WGMI targets companies that derive at least 50% of their profits or revenue from bitcoin mining, including those providing hardware, software, and specialized chips for mining [5] - The fund aims to provide lower correlation opportunities within equities while benefiting from the growing demand for bitcoin [1][3] Market Context - As traditional equities face challenges and bond yields rise, alternatives like bitcoin are becoming more attractive, with institutional demand and macroeconomic volatility supporting the bitcoin economy [2] - Bitcoin prices have increased amidst a backdrop of tariff uncertainty affecting broad equity indexes [2] Diversification Potential - WGMI offers diversification across various exposures, making it suitable for investors looking to expand their equity portfolios while harnessing bitcoin demand without direct exposure [3][4] - The fund may complement broader blockchain ETFs or serve as a focused allocation for those diversifying away from traditional financial or technology-heavy portfolios [4] Management and Performance - The fund is managed by a team of experts in both cryptocurrencies and finance, leveraging their knowledge of the bitcoin mining industry's technical, operational, and commercial aspects [7] - WGMI has a lower correlation to bitcoin compared to some peers, influenced by unique fundamentals such as energy costs and block rewards [6]