DAVINCI TP’s Masterpiece Invites Latin American Investors to Look Beyond the U.S.

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(cedida) Evento Masterpiece, organizado por Davinci Trusted Partner, en Buenos Aires
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Against the backdrop of a highly particular moment in international markets—driven by the aggressive trade policy adopted by the White House in the United States—the message of DAVINCI Trusted Partner during its South American tour was to seek investment opportunities and ideas beyond U.S. borders. While the U.S. remains relevant, experts gathered by the Rio de la Plata–based firm in front of investor groups in four of Latin America’s main financial capitals pointed out that there are other alternatives such as Europe, Japan, and semi-liquid assets.

The sixth edition of Investment Masterpiece, the firm’s flagship event, took place last week across the financial districts of São Paulo, Buenos Aires, Santiago de Chile, and Montevideo—on May 12, 13, 14, and 15, respectively—presenting equity, multi-asset, and semi-liquid strategies as options to meet three key goals defined by the distribution house: diversification, reduced portfolio volatility, and uncorrelated investments.

“It is necessary to globalize portfolios,” said James Whitelaw, Managing Director at DAVINCI, adding that while they are not eliminating U.S. exposure, they are seeing a variety of opportunities outside the United States.

Broadening the View

“These are very turbulent times,” warned Christopher Holdsworth, Chief Investment Strategist at Investec, as he took the stage. The underlying issue, he explained, is the rising cost of U.S. government funding, with 3.5% to 4% of GDP currently going to pay financial interest.

This has led to tensions within the Department of Government Efficiency (DOGE), which has attempted—questionably—to cut fiscal spending and impose tariffs worldwide. “That means some forms of tariffs are here to stay,” said Holdsworth.

Warning signs are also emerging. Although retail investors have continued to favor U.S. equities, consumer confidence has declined, with unemployment and inflation as top concerns. According to Holdsworth, “hard data will start to weaken,” noting recent signs of dwindling household excess savings and rising debt defaults.

“The main damage is being felt in the U.S.,” he said during his presentation. However, this also creates opportunities: although U.S.-specific issues typically weaken the dollar, the greenback has remained strong. For Investec, this indicates “there are opportunities outside the U.S.” and that “we must focus our attention elsewhere.”

Given the overvaluation of U.S. assets—while prices elsewhere seem more “normal”—and the unusual dynamics of the U.S. dollar and Treasury bonds, the latter no longer appear to serve as a traditional safe haven, although they may still function as a store of value, he noted.

Consequently, Investec has been reducing U.S. exposure in its balanced and cautious multi-asset strategies, placing greater emphasis on European, emerging market, and Japanese assets, with a particular interest in the yen.

European Appeal

In this context, as investors struggle to interpret U.S. market dynamics, one region is gaining prominence in market conversations: Europe.

The continent, explained Niall Gallagher, Investment Manager of European Equities at Jupiter Asset Management, “is at a very interesting juncture,” increasing its attractiveness as an investment destination.

In addition to valuations—more compelling than those in the U.S.—the London-based firm sees a potential tailwind from capital flows. As U.S. equities have become more prominent in global indices, the weight of European and Japanese stocks has declined.

What does this mean? “If there’s a major shift in flows away from the U.S., Europe is well positioned,” Gallagher stated. Moreover, the Old Continent offers a “relatively diverse market,” which becomes especially important when the market’s concentration—particularly among U.S. tech giants—grows “increasingly uncomfortable.”

Santiago Mata, Sales Manager for LATAM and U.S. Offshore at the firm, added that the political uncertainty in the U.S. “is something we’ll have to get used to,” especially at a time when the correlation between stocks and bonds is challenging the traditional 60/40 portfolio model.

Private Markets

Alternative assets—a category of growing interest among private banks and wealth management channels—also held a prominent place at DAVINCI’s Masterpiece, represented by Brookfield Oaktree Wealth Solutions.

Óscar Isoba, Managing Director and U.S. Offshore and LATAM Head at the firm, emphasized the crucial role semi-liquid strategies have played in democratizing this asset class.

Addressing Latin American audiences that are increasingly turning to private markets in search of higher returns and lower volatility, Isoba stressed the role of advisors in accelerating this trend. While Latin America still lags in adopting these strategies, it is a phenomenon already underway in the region, he explained.

“We are bringing institutional solutions to the wealth segment,” Isoba highlighted. For investors beginning to build their alternative portfolios, he recommended starting with private credit—a category he described as historically “consistent,” even during periods of higher inflation.

The Power of Technology

The event also underscored the importance of technology in asset management. Michael Heldmann, CIO of Systemic Equity at Allianz Global Investors—together with its partner Voya Investment Management—discussed the Best Styles Global Equity strategy, a global equity fund that leverages big data, artificial intelligence, and computing power to optimize returns.

How does it work? Through the human expertise of the investment professionals involved and the technological systems applied to their investment process over the past 25 years—with strong historical results—the strategy identifies different types of companies. These include “cheap” assets, firms involved in positive trends, and defensive companies.

They have thus categorized five investment styles: value, momentum, revisions, growth, and quality.

Technology has also enabled them to minimize “unrewarded risks”—such as currency fluctuations and commodity prices—while enhancing returns through artificial intelligence.

Columbia Threadneedle Investments Enters the Active ETF Business in Europe

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Columbia Threadneedle Investments has announced that it will offer its range of active ETFs in Europe. According to the firm, it plans to launch four equity UCITS vehicles in the UK and Europe over the course of this year, subject to regulatory approval. These four new active ETFs will offer European clients exposure to global, U.S., European, and emerging market equities. The firm also noted that its goal is to expand the range and include active fixed income ETFs next year.

The initial product range will be managed by Chris Lo, Senior Portfolio Manager, and his team based in the United States. They currently manage $15 billion in assets across 13 U.S.-domiciled funds. Columbia Threadneedle has a strong track record in designing and managing ETF strategies tailored to client needs, with $5.5 billion in assets under management across 14 U.S.-domiciled ETFs.

The new active equity ETFs launching in the European market will leverage the firm’s expertise in ETF and systematic solutions management. According to Columbia Threadneedle, the new lineup is built on the investment approach of the Columbia Research Enhanced Core ETF, a Morningstar five-star rated fund that combines quantitative analysis with Columbia Threadneedle’s extensive fundamental research capabilities. “The active equity ETFs will be truly active, designed to outperform the index,” the firm states.

Following the announcement, Richard Vincent, Head of Product (EMEA) at Columbia Threadneedle Investments, explained: “We are continuously looking to develop and expand our investment offering for clients, providing innovative, high-value products and solutions that complement our existing range. In this regard, bringing active ETFs to Europe and building on the foundation of our successful U.S. platform is a natural expansion that draws on years of experience delivering ETF solutions to our U.S. clients.”

A Clear Vision

Columbia Threadneedle’s new European active equity ETFs aim to meet various needs of discretionary fund buyers. First, by offering high-conviction core equity positions as fundamental building blocks for portfolios—strategies aligned with benchmark indices but designed to generate alpha through genuine stock selection.

The firm also emphasizes that this is a proven, consistent, and replicable investment strategy, combining quantitative and fundamental analysis within a rules-based, repeatable, and easy-to-understand framework. In addition, it offers transparency and cost efficiency: daily disclosure of investment decisions, a portfolio designed to minimize transaction costs, and competitive fees.

“We are excited to bring this innovative and differentiated investment strategy to the European market in an active ETF format. These four new active ETFs will complement our existing open-ended fund offering, expanding options for clients seeking core active components for their portfolios. Active ETFs are increasingly being adopted by clients as an efficient way to implement portfolios. By leveraging our U.S. track record, we can offer clients excellent value. We believe this represents a genuine growth opportunity for us in the region,” said Michaela Collet Jackson, Head of Distribution and Marketing for EMEA at Columbia Threadneedle Investments.

U.S.: Uncertainty Reaches Highest Level in Three Years Among Current Homeowners and Prospective Buyers

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Uncertainty among current homeowners and prospective buyers has reached its highest level in three years, with 60% saying they cannot determine whether now is a good time to buy a home, compared to 48% two years ago. This is according to the latest Bank of America Homebuyer Insights Report, published in coordination with the most recent On the Move analysis from the Bank of America Institute.

Despite this figure, 52% of prospective buyers remain optimistic about the current state of the housing market, stating it is better now than it was a year ago. On the other hand, 75% expect home prices and interest rates to decline, and are waiting for that moment to purchase a new home—up from 62% in 2023.

“With so many factors affecting the housing market, potential buyers and current homeowners are wondering what it all means for them,” said Matt Vernon, Head of Consumer Lending at Bank of America. “As our research shows, most buyers feel the market is headed in the right direction, but many still plan to wait for more favorable conditions before making a decision,” he added.

 

Generation Z: Making Trade-Offs to Achieve Homeownership

The new research also reveals that despite financial obstacles, the dream of homeownership remains a powerful motivator for both Generation Z and Millennials. This drives them to make sacrifices now and prioritize the long-term financial security that owning a home can provide. For both generations, three out of four current homeowners consider owning a home to be a major accomplishment. The 2025 data shows:

  • 30% of Gen Z homeowners said they made their down payment by working an additional job, compared to 28% in 2024 and 24% in 2023.

  • 22% of Gen Z homeowners purchased their home jointly with siblings, up from 12% in 2024 and 4% in 2023.

  • 34% of prospective Gen Z buyers would consider living with family or friends while they wait to buy a home.

  • 21% of Gen Z prospective buyers say they plan to fund their down payment with a loan from parents or relatives, compared to just 15% of the general population. Among all prospective buyers, this figure rose from 9% in 2023 to 12% in 2024.

“Even with the challenges they face, younger generations understand the long-term value of homeownership, and many are doing what it takes to achieve it,” commented Vernon. “They’re finding creative ways to afford down payments and working hard to improve their financial future,” he added.

Extreme Weather Concerns Homebuyers

62% of current homeowners and prospective buyers are concerned about the impact of extreme weather events and natural disasters on homeownership, and 73% consider it important to buy in areas at lower risk for such events.

  • 38% have changed their preferred home-buying location due to the risk of extreme weather in that area.

  • Among current homeowners, nearly a quarter (23%) have personally experienced property damage or loss due to severe weather over the past five years.

  • 65% of current homeowners are taking steps to prepare their homes for the risk of extreme weather events.

The national online survey was conducted by Sparks Research on behalf of Bank of America between March 20 and April 22, 2025. A total of 2,000 surveys were completed (1,000 homeowners / 1,000 renters) with adults aged 18 and over who make or share financial decisions in the household, and who currently own, previously owned, or plan to own a home in the future.

U.S. Treasury Downgrade: Same Strength, New Opportunities

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Rates are up, markets are shaky, and the last AAA is gone. But it’s still the U.S.—the world’s anchor, and now, a bond market full of opportunity.

A Global Giant with Growing Pains

The United States remains the world’s largest economy, generating 27% of global GDP—61% more than China, the second largest at 16.9%. This economic dominance is backed by unmatched military power and the U.S. dollar’s role as the world’s primary reserve currency.

A Yield Curve Turning Upward

The U.S. Treasury yield curve has returned to a normal upward slope, signaling healthier financial markets and offering better rewards for long-term investors. This is a welcome development for those seeking predictable income and capital preservation in uncertain times.

Debt: The Elephant in the Room

However, this optimism is tempered by a growing concern: the national debt has surpassed $36 trillion. Every American would need to pay over $100,000 to eliminate it. Interest payments alone consume about 13% of the federal budget—and could rise to 30% of tax revenue within a decade.

U.S. Treasury Downgrade—Same Strength, New Opportunities

The U.S. government now spends around 13% of its budget just on interest payments. If this were a household, it would be like spending a big chunk of your paycheck just to cover credit card interest—unsustainable without a raise. Similarly, while economic growth could help reduce the debt burden, it’s not something the country can count on.

Cutting spending is another option, but politically difficult. The largest budget items—healthcare, Social Security, and defense—are hard to touch. Reducing entitlements is unpopular, and cutting defense is rarely on the table.

Raising taxes or allowing inflation to erode the real value of debt are also possible, but neither is ideal. Taxing the middle class is politically risky, and inflation has mixed consequences. In short, there’s no easy fix—but the sooner the conversation starts, the better.

Moody’s Downgrade: A Wake-Up Call

Moody’s recently downgraded the U.S. credit rating from Aaa to Aa1, citing unsustainable debt growth. This follows earlier downgrades by S&P (2011) and Fitch (2023). While symbolic, it doesn’t change much for bondholders—U.S. Treasuries remain a global safe haven.

How Do Other Countries Compare?

Only Germany, Switzerland, and Canada still hold a perfect AAA rating from all three major agencies. But their bond markets are much smaller than the U.S.—Germany’s, for example, is less than a quarter the size. The U.S. remains the deepest and most liquid bond market in the world.

A Bond Opportunity in Disguise

Despite the downgrade, long-term Treasuries now offer yields close to 5%—levels not seen since 2007. For income-focused investors, this is an attractive entry point. Bonds can provide predictable cash flow and capital protection, especially in a volatile equity environment.

Bottom Line: Stay Vigilant, Stay Invested

The U.S. downgrade is a reminder—not a crisis. The fundamentals of the U.S. economy remain strong, but fiscal discipline is urgently needed. For investors, this is a time to be selective, stay diversified, and consider high-quality bonds as a core part of a resilient portfolio.

Global Private Equity Investment Grows 14% After Two Years of Decline

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The latest report from McKinsey & Company, the Global Private Markets Review 2025, reveals that raising capital continues to be a challenge, resulting in a 24% reduction in new commitments globally to $589 billion in 2024—marking the third consecutive year of decline. Nevertheless, distributions to LPs surpassed capital contributions for the first time since 2015, providing much-needed relief to investors during a pivotal moment for sector liquidity.

However, global investment in Private Equity reached $2 trillion in 2024, recording a 14% increase after two years of decline. This rebound was driven by a notable rise in both the number and value of large transactions, primarily under buyout strategies, amid more favorable financing conditions. Moreover, entry multiples approached levels seen in 2021 and 2022, reflecting increased investor confidence in the potential for asset appreciation.

Greater Focus on Value Creation

The 2024 investment landscape was marked by higher entry multiples and longer holding periods, intensifying pressure on Private Equity funds to generate value through more active strategies focused on operational and revenue enhancements in their portfolio companies. In this context, add-on mergers and acquisitions accounted for 40% of total private equity deal value, consolidating their position as a key driver of returns.

Debt costs improved gradually, leading to a rise in the value of new credit issuances for private equity-backed companies. However, global dry powder declined by 11% in the first half of 2024, standing at $2.1 trillion, reducing the inventory to 1.89 years.

Tomeu Palmer, Partner at McKinsey and Leader of the Private Equity & Principal Investors practice in Iberia, states: “For private equity managers, focusing on value creation through operational and growth levers has never been more important. Entry multiples have reached historical highs and holding periods are longer, making operational optimization and growth essential for delivering strong returns.”

New Dynamics in the Secondary Market

The secondary market has become a significant additional liquidity source for LPs, with a 45% increase in transaction value. This growth has fueled LP interest in seeking liquidity beyond distributions, as well as in GP-led secondaries through the creation of continuation vehicles as a strategy for portfolio management. In total, secondary transactions reached $162 billion—the highest level on record.

Meanwhile, middle-market funds were the only ones to maintain stable fundraising levels amid widespread declines. Large funds failed to grow for the first time in three years, while smaller and newly launched funds faced greater challenges, with longer fundraising periods and lower volumes. Nonetheless, LP confidence in the Private Equity segment remains strong, with 30% planning to increase their allocation to private equity over the next 12 months, according to McKinsey’s global LP survey.

“The secondary market has gained unprecedented relevance, reaching a record-breaking transaction volume of $162 billion. More than half of this total was driven by LP-led transactions, showing that investors have found this mechanism to be an efficient way to reallocate capital and manage liquidity. Moreover, the GP-led segment also reached record figures, with 84% of these funds channeled through continuation vehicles,” says Joseba Eceiza, Senior Partner at McKinsey and Leader of the Private Equity & Principal Investors practice in Iberia.

GPMR Report Highlights

Global fundraising fell by 24% to $589 billion, marking the third consecutive year of decline. Transaction activity rebounded by 14% to $2 trillion, the third-highest figure ever recorded in the sector.

For the first time since 2015, distributions to investors exceeded capital contributions, easing liquidity pressures. Buyouts led fundraising efforts and achieved the highest internal rate of return (IRR) in 2024, with a significant increase in transactions exceeding $500 million.

Venture capital experienced a drop in both the number and value of deals, reflecting a decrease in momentum in that segment. Growth equity showed relative stability, although it was affected by investor caution and tighter debt conditions.

The financing environment improved with lower costs and increased issuance value for new private equity-backed debt. Global dry powder fell by 11% in the first half of 2024 to $2.1 trillion, reducing inventory levels to 1.89 years.

A global LP survey revealed that 30% of respondents plan to increase their private equity allocations over the next 12 months, indicating continued confidence in the asset class. Large-scale transactions (over $500 million) increased by 37% in value and 3% in volume, highlighting a growing preference for larger deals.

The rise of the secondary market and a higher number of exits by financial sponsors reflect a more sophisticated approach to portfolio and liquidity management strategies.

BBVA Global Wealth Advisors Continues U.S. Expansion: Opens New Office in Houston

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BBVA Global Wealth Advisors has announced the opening of a new office in Houston, Texas. This marks the first physical expansion in the United States by the Spanish bank’s wealth advisory and RIA arm since launching its initial headquarters in Miami in early 2024.

The new office represents a strategic step aligned with BBVA GWA’s long-term vision to increase its presence in key U.S. markets that offer both geographic proximity and economic relevance to its Latin American client base, the firm said in a statement.

“Houston represents more than just an additional office: it reflects our continued commitment to client access, market relevance, and the strategic acquisition of talent,” said Humberto García De Alba, CEO of BBVA Global Wealth Advisors. “We see strong demand among Latin American investors seeking sophisticated advisory services in stable and transparent jurisdictions like the United States,” added the executive, who took on the role less than a month ago but has been with the bank since 2002.

Founded to serve cross-border clients with complex wealth management needs, BBVA GWA is registered with the SEC as an investment advisor. The firm provides investment advisory services leveraging the global BBVA brand legacy.

The Houston office will serve as a client advisory hub and a platform to attract experienced professionals who share the firm’s client-centric philosophy, according to the statement. Houston’s status as an international hub for energy, healthcare, and finance—combined with its growing population of high-net-worth individuals—makes it an attractive market for BBVA GWA’s expansion, the firm added.

BBVA Global Wealth Advisors plans to selectively grow its national presence through measured, client-oriented expansion.

William López, New Head of Europe and Latin America at Jupiter AM

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Jupiter Asset Management has announced the appointment of William López as the new Head of Europe and Latin America. Until now, López served as Head of Latin America, Iberia, France, and US Offshore. With this internal promotion, he expands his responsibilities in response to a broader review of the firm’s approach in the EMEA region.

According to the firm, US Offshore will remain under his responsibilities. The appointment is intended to further advance the firm in some of its key international markets, as well as to strengthen its focus on managing cross-border key accounts, working closely with the existing sales teams in each market.

One such team is the Iberia team, led by Francisco Amorim, Head of Business Development for Iberia at Jupiter Asset Management since fall 2024. The team also includes Susana García, Sales Director, and Adela Cervera, Business Development Manager. “Jupiter’s team in the Iberian region works very closely with William to drive business growth in this market, aiming to optimize sales capabilities and foster commercial momentum,” the firm explained.

Q2 Holdings, Inc. Delivers with New Direct ERP Solution

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Q2 Holdings, Inc. has announced the launch of Direct ERP, a system designed to close the longstanding gap between banking systems and enterprise resource planning platforms. 

It allows banks and credit unions to incorporate core treasury functions directly into commercial clients’ ERP environments, thus streamlining workflows, enhancing visibility and reducing operational friction. 

With Direct ERP, businesses can manage payments, access account data, and handle approvals directly within familiar platforms like NetSuite, Workday, Sage Intact, Microsoft Dynamics Business Central, QuickBooks, and Xero. 

By integrating banking into these systems, the solution streamlines reconciliation, improves cash flow visibility, reduces manual work, and lowers risk, making it easier for finance teams to stay efficient under pressure.

“Direct ERP enables banking operations within the ERP software experience, automating critical payment and reporting workflows, allowing banks and credit unions to compete for even the largest corporate customers,” said Adam Blue, Q2 Chief Technology Officer. 

The platform is powered by partners such as Koxa and Ninth Wave, facilitating connectivity across leading ERP systems. 

Manual processes and disconnected systems have long plagued treasury operations, often resulting in delayed, poor user experience and increased overhead. According to Datos insights, 91% of mid-size and large North American businesses consider ERP-based banking capabilities essential, yet most financial institutions are still playing catch-up. 

Institutions like Synovus are already leveraging Direct ERP to elevate their treasury services.

“This new solution enhances our integration technology capabilities and transforms how we support them more efficiently,” said Katherine Weislogel, head of treasury and payment solutions at Synovus. 

With Direct ERP, Q2 is equipping financial institutions with the tools to stay competitive, meet rising client expectations and modernize how they support commercial banking in today’s rapidly evolving market. 

MissionSquare study finds gaps in employers’ support

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A new study reveals significant disparities in how student loan debt affects financial well-being, retirement preparedness and career decisions of public compared to private sector employees. 

Based on a survey of over 2,000 workers, MissionSquare Research Institute found a need for more employer-driven support programs across sectors. 

According to the report, titled How Employer-Provided Resources Can Elevate the Impact of Student Debt Across Sectors, 43%  of public sector employees currently carry student loan debt, compared to 36% of private sector employees. 

Yet despite this higher burden, public sector employees often benefit from more support options, such as the Federal Public Service Loan Forgiveness program, a benefit many say they have not been informed about. 

While loan balances hurt both groups financially, private sector workers are more likely to experience lingering financial strain even after their loans are paid off, a phenomenon the study labels the “debt-overhang” effect. It includes delayed retirement contributions, reduced investments and postponed major purchases. 

“Our study shows that employer-provided resources and policy improvements can help to address these long-term financial impacts of student loans, helping employees build a secure financial future,” said Dr.Zhikun Liu, vice president and head of the Institute for MissionSqaure. 

The report found that 48% of all respondents said their employer did not provide any debt management resources, including 49% of private sector and 42% of public sector workers. Moreover, less than 29% of public employees were informed by their employer about PSLF.

Despite public sector workers having greater access to forgiveness programs, the study emphasizes a lack of communication and employer agreement. 

“To help improve financial outcomes for all workers, employers and policymakers need to not only offer these resources, but ensure they guide their workforce in understanding them as well,” added Liu. 

The study asks private and public sector employers to expand services to financial literacy programs, personalized counseling and debt management tools. For public institutions, improved communication around PSLF eligibility and application guidance is key. However, for private employers, introducing basic student debt support could alleviate long-term financial stress among their workforce. 

As student debt continues to shape long-term financial trajectories, the report presents a strong case for workplace-led solutions to help mitigate its impact across the American workforce.

Crypto Assets Sneak Into the S&P 500 and Break a New Barrier

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On May 19, 2025, Coinbase will officially be added to the S&P 500, becoming the first major crypto platform to join the world’s most iconic stock index. For experts in the crypto space, this milestone marks an unprecedented level of institutional validation for the digital asset sector.

“This is not a symbolic gesture but a structural confirmation: Coinbase has met the rigorous standards for stability, liquidity, and profitability required by the index committee, which only admits well-established companies from the U.S. corporate elite,” says Dovile Silenskyte, Director of Digital Assets Research at WisdomTree.

Coinbase’s inclusion coincides with a moment of strong momentum in the market: Bitcoin has surpassed $100,000, and altcoins such as Solana, Ether, and XRP are seeing significant capital inflows. “This reinforces renewed investor interest in the crypto ecosystem, and inclusion in the S&P 500 means Coinbase will begin channeling passive flows from the trillions of dollars tracking this index,” adds Silenskyte.

In the first week of May, Bitcoin surged past $100,000 and is now very close to its all-time high of $110,400. “Altcoins also rallied, in some cases even outperforming Bitcoin. Ethereum, for example, gained 28% against Bitcoin last week, driven both by the trade agreement and the successful rollout of the long-awaited ‘Pectra’ upgrade on the Ethereum mainnet. On the more speculative end of the market, memecoins posted even steeper gains, in some cases up to 125%,” notes Simon Peters, analyst at eToro.

However, experts remain cautious, and the current rally in crypto assets comes with nuances. For example, Manuel Villegas, Next Generation Research Analyst at Julius Baer, points out that Ethereum is not to silver what Bitcoin is to gold. “Their fundamental drivers are very different. In the short term, volatile —and noisy— macroeconomic conditions may obscure these distinctions, causing Ethereum to behave like a high-beta version of Bitcoin, but in the long run, each token’s fundamentals will prevail. Flows into Ethereum ETFs have been minimal —at best—. At the same time, we clearly see institutional interest in collateral management and stablecoins, where significant activity may concentrate on Ethereum. Meanwhile, its supply remains inflationary, as network activity is still limited,” Villegas notes.

The Coinbase Case

Focusing on Coinbase, it’s worth highlighting that the company, which survived the bear market and regulatory pressure of 2022–2023, successfully transformed itself: it cut costs, diversified revenues into areas like staking, custody, and blockchain infrastructure, and posted GAAP profits in 2024, which cemented its eligibility.

“This inclusion accelerates the institutionalization of the crypto world and removes barriers for traditional investors, who now see Coinbase as a legitimate gateway to the sector. It also sends a clear signal to traditional financial firms: Wall Street is no longer watching from afar—it is participating, allocating capital, and gaining exposure —even passively— to crypto. What was once marginal is now an integral part of the global financial architecture. Crypto assets are no longer knocking on the system’s door — they’ve been handed the keys,” concludes Silenskyte.

Bull Market

Current market conditions are dominated by macroeconomic and geopolitical factors, suggesting that volatility driven by external events will remain present. As for this asset class, crypto regulation in the U.S. and the UK is expected to remain one of the most relevant drivers throughout the rest of the year, with stablecoins being the key issue in the U.S. and spot ETFs the top priority in the UK.

According to Julius Baer, the crypto market’s rally reflects an improvement in risk sentiment, driven by the easing of trade tensions between the U.S. and China. Silenskyte explains that Bitcoin’s price increase is fundamentally based on its scarcity, with institutional demand outpacing supply. Meanwhile, due to differing fundamentals, Ethereum is likely to continue diverging from Bitcoin in the long term, despite currently being influenced by similar macroeconomic trends. “Regulatory developments in the U.S. and the UK will be key factors shaping the market going forward. Investors should act with caution, as macro-driven volatility will remain,” she notes.

In their view, sentiment in the crypto market appears to have shifted significantly, in line with improved sentiment across financial markets following signs of easing U.S.–China trade tensions. “That said, both Bitcoin and Ethereum have also rallied due to multiple acquisitions happening in the background, among which Coinbase’s $2.9 billion acquisition of the non-listed options trading platform Deribit marked a turning point in the pause in crypto sector M&A activity,” concludes the Julius Baer analyst.