WisdomTree Newsletter 10 April
Welcome to the 14th issue of WisdomTree's newsletter. In this update, we will provide highlights on the latest market news and trends across all major asset classes. Additionally, we will share our latest insights resources, podcasts and company news.
??Product news
WisdomTree launches Energy Transition Metals and Rare Earths Miners UCITS ETF (RARE)
We are thrilled to announce the launch of the WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF (RARE), marking our first thematic launch of 2024. Launched on Borsa Italiana, B?rse Xetra and the London Stock Exchange, RARE tracks the WisdomTree Energy Transition Metals and Rare Earths Miners Index and offers a unique investment opportunity in metals essential for the energy transition.
Explore more about RARE on our website.
Award: Best Equity ETF - WisdomTree Artificial Intelligence UCITS ETF (WTAI)
We are excited to announce that WisdomTree scored a double win at MoneyMate Italia's awards, receiving recognition for Best Equity ETF: WisdomTree Artificial Intelligence UCITS ETF (WTAI) and as the asset manager with the most outstanding ETFs!?
????Thought Leadership
Bitcoin: It may be time to seize the opportunity
2024 is proving to be quite the year for Bitcoin! With over $12B inflows into spot ETFs and an all-time high of $73,835.57, the horizon looks bright. The upcoming halving and US election could further boost Bitcoin. Curious about the long-term? Dive into our latest insight for a deep analysis of Bitcoin's potential.
Download the full whitepaper here.
WisdomTree Gold Monthly
Gold hit a new high of $2,220/oz after the Fed’s meeting on 20 March 2024. Despite a brighter economy, the Fed plans three rate cuts this year. This, along with a drop in bond yields and the US Dollar, benefits gold. Read the full update:
Read the full update here.
???Latest Insights
Energy transition metals and metals producers step into the spotlight
Given leading macroeconomic, policy and market indicators, 2024 offers a solid foundation for a recovery of confidence for energy transition. The outlook for EV sales is robust, with the market expected to grow eight times the 2020 level by 2030. The midstream sector may have been an overlooked facet of the energy transition during the initial years but that is no longer the case.
Read more here.
Bitcoin supply remains tight as ‘the halving’ nears: Could it lead to new highs again?
The bitcoin halving is set to occur in April and has historically been a strong performance catalyst. With the current supply of bitcoin being tight due to strong ETF demand, the halving will cut the rate of bitcoin issuance in half, further tightening the supply. This could significantly impact the price of bitcoin, as the balance between supply and demand shifts.
Read more here.
Tightening fundamentals bolster prospects for copper
Copper prices are being reignited by announcements from major copper smelters in China to curb output in response to a tightening copper ore market. This comes on the heels of a collapse in spot treatment,? refining charges declining to record lows and supply setbacks. We remain optimistic about the long-term prospects for copper spurred by rising demand from the energy transition and China.
Read more here.
???Podcasts
The Next Big Thing: Exploring the current tech cycle with Dan Ives
In this episode of The Next Big Thing, Chris is joined by Jeremy Schwartz, Global CIO at WisdomTree and Dan Ives, Managing Director and Senior Equity Research Analyst, Wedbush Securities. Together they discuss various topics related to the tech industry, including the current tech cycle, valuations, the AI opportunity, partnerships, the metaverse, chip manufacturing, and the potential of AI in healthcare and biotech. They also touch on the geopolitical risks in China and Taiwan, the future of electric vehicles, and the bull case for Tesla. Overall, the conversation highlights the transformative power of AI and its impact on various sectors of the economy.
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The Commodity Exchange: The macro backdrop for commodities
In the first half of this Episode of The Commodity Exchange, Nitesh Shah and Mobeen Tahir, CFA are joined by Nick Stadtmiller, head of product at Medley Advisors. Together they discuss key macroeconomic topics related to commodity markets. The conversation covers central bank activity, the polarization of central banks, expectations from the Fed, risks of surprises, the ECB's timing and actions, China's economic prospects, deglobalization and emerging markets, and the economic implications of the US election.
Crypto Clarified: Investing in the digital asset ecosystem
In this episode of Crypto Clarified, Ben is joined by Pierre Debru, Head of Quantitative Research and Multi Asset Solutions here at WisdomTree. Together they discuss the key insights from our white paper on the digital asset ecosystem, originally written two years ago, which explored digital assets as a new asset class and provided a framework for investment. Despite the fast-paced changes in technology, our central thesis on the role of digital assets in portfolios remains relevant. They also discuss how much a neutral investor should allocate to cryptocurrencies and how digital assets can be used effectively in a portfolio.
?? Market Commentary
COMMODITIES: New highs and beyond for gold
On 3 April the gold price surged to a new peak at US$2,288 per troy ounce without a clear catalyst. Some attribute the rise to Middle East developments, others to dovish statements from Fed officials, though neither explanation seems entirely convincing. This trend follows the pattern from the previous month, where despite strong inflation data and a robust US economy, uncertainty remains around the timing and magnitude of US interest rate cuts. Contrary to previous expectations of rate cuts in June, recent economic indicators, particularly the March labour market report, may provide clarity on the likelihood and scale of impending rate changes. While we anticipate limited upward movement for gold in the medium term, the precise impact of potential rate cuts remains uncertain, suggesting that new record highs may not be imminent.
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COMMODITIES: Cocoa prices still breaking records
As of 3 April, the price of cocoa is up 137% year-to-date. Cocoa reached a new high late last year and has continued a sharp upward ascent since on expectations of supply tightness this year due to crop disease and adverse weather conditions. C?te d’Ivoire, the world’s largest cocoa producer, accounts for approximately 40% of global cocoa bean production, with Ghana contributing around 15%. The emergence of black pod disease and cacao swollen chute virus, previously prevalent in Ghana, has now afflicted cacao trees in C?te d’Ivoire as well. The spread of disease has been partially attributed to increased rainfall, notably C?te d’Ivoire experiencing double its typical precipitation levels in July 2023, a phenomenon uncommon for that time of year.
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All data sourced from Bloomberg, as of 3 April 2024.
This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.