#bitcoin
#ethereum
#xrp
#solana

$BITC (-2.95%)
$CETH (-5.47%)
$XRRL (-1.97%)
$SLNC (-3.78%)
$CTEN (-1.34%)

James Butterfill, CoinShares' Head of Research, explains this using the example of #btc and #eth.

Some long-term investors seem to believe in the four-year cycle narrative - a self-reinforcing pattern that we don't share, but can't ignore either. Followers of this model realize gains, convinced that the cycle peak is approaching. The current price and momentum patterns more closely resemble the moderate trajectory of the 2021 cycle than the parabolic peaks of previous phases - which explains the ongoing sell-off by large investors: over 100 wallets with more than 1,000 Bitcoin have reduced their holdings since July, indicating continued profit-taking. Ethereum on the other hand, is experiencing silent accumulation - the number of wallets with over 10,000 ETH has risen from 877 to 1,250 since June. We believe that institutional capital flows, ETF activity and global liquidity trends are now having a far greater impact on market behavior than the simple four-year pattern of previous cycles.

$BITC (-2.95%)
$CETH (-5.47%)

This week's on-chain data shows a growing divergence between large investors in #bitcoin and #ethereum. For Bitcoin, the number of addresses with more than 10,000 #btc continues to decline - an indication that some of the largest market participants continue to sell holdings. Over 100 wallets with more than 1,000 BTC have also reduced their positions since July, indicating continued profit-taking after this year's price rally. Ethereum, on the other hand, paints a different picture. Since June, the number of wallets with more than 10,000 #eth has risen from around 877 to around 1,250. This indicates that accumulation by large holders has increased in the background - even while the Bitcoin whales are retreating. This development suggests a shift in conviction within the market rather than a broad exit from digital assets. With interest rate expectations for December now slightly less dovish than before, markets appear to be readjusting rather than pulling back. Phases like this often serve as position restarts. Historically, a slowdown in selling by large investors and subsequent resumption of accumulation often coincides with a more stable bottom in major crypto assets.

$CETH (-5.47%)

The combination of fiscal uncertainty and a more restrictive stance from the US Federal Reserve has kept digital assets largely sideways, with market sentiment remaining mixed. #bitcoin Digital assets were the main loser this week, recording outflows of USD 851 million by the close of trading on Thursday. In contrast, digital assets recorded #ethereum and #solana saw inflows of USD 133 million and USD 380 million respectively over the same period.

Investors seem to have taken Jerome Powell's restrictive forecasts literally and reduced their positions in view of the lower probability of a rate cut in December. We expect these rate expectations to recalibrate once the government shutdown ends and the delayed macroeconomic data is released. These should provide a clearer picture of the underlying economic damage and the policy response ahead.

#crypto

The crypto markets are currently volatile and characterized by uncertainty: Bitcoin saw outflows of USD 946 million last week, while Ethereum saw inflows of USD 205 million, supported by a 2x leveraged ETP with USD 457 million. Despite the difficult market conditions - including the liquidity cascade on October 10 and weaknesses at US regional banks - interest in digital assets remains high, particularly in Ethereum and new ETP products. Investors thus continue to show conviction in selected digital assets.

$CETH (-5.47%)

Why physically collateralized crypto ETPs are important

The global demand for regulated, transparent and simple ways to invest in cryptocurrencies is growing - especially in Germany. Many investors want to benefit from the performance of digital assets without having to deal with wallets, private keys or technical setup. This is exactly where CoinShares Physical ETPs come into play.

CoinShares is a European market leader in digital asset investments with offices in Switzerland, Jersey, the UK and Sweden. CoinShares Physical ETPs offer a simple, secure and transparent way to invest in assets such as Bitcoin, Ethereum and others - with the added benefit of physical collateralization that creates transparency and direct connection to the underlying asset.

What is an ETP and what does "physically backed" mean?

An ETP (Exchange Traded Product) is an exchange-traded financial product that tracks the price of an underlying asset - in this case cryptocurrencies such as Bitcoin or Ethereum.

A "physically backed" ETP means:

• Each ETP unit is directly backed by real crypto assets.
• The underlying coins are held in secure cold storage vaults.
• Investors have a claim to the underlying digital assets.

The main benefit: Investors receive direct price participation without having to hold or manage the assets themselves.

Why choose CoinShares Physical ETPs?

Security & custody

All coins backing the ETPs are stored in highly secure, institutional cold storage solutions. Custody is provided by reputable third-party providers such as Komainu - a joint venture between Nomura, Ledger and CoinShares.

Transparency

CoinShares publishes daily:

• The exact amount of cryptocurrencies held,
• The net asset value (NAV) of each ETP,
• The number of ETP units issued,
• The amount of staking income distributed to investors.

Investors can see what they own and how it is structured at any time.

Regulation & Structure

The CoinShares Physical ETPs:

• Are listed on European exchanges, including Xetra in Germany,
• Are issued in accordance with applicable EU financial regulation and are subject to ongoing supervision by competent authorities,
• Are domiciled in Jersey - a jurisdiction with strong financial control.

Physical Collateral & Coin Entitlement

Each ETP unit grants the holder an entitlement to a certain amount of cryptocurrency ("Coin Entitlement"). This amount is updated daily and published transparently on the CoinShares website. This means that investors are not only financially but also economically linked to the underlying crypto asset.

What products are currently available?

CoinShares offers a growing range of single asset ETPs, including:

• CoinShares Physical Bitcoin - $BITC (-2.95%)
• CoinShares Physical Staked Ethereum - $CETH (-5.47%)
• CoinShares Physical Litecoin - $CLTC (-1.75%)
• CoinShares Physical XRP - $XRRL (-1.97%)
• CoinShares Physical Staked Tezos - $XTZS (-3.63%)
• CoinShares Physical Staked Polkadot - $CDOT (-3.58%)
• CoinShares Physical Staked Cardano - $CSDA (-3.71%)
• CoinShares Physical Staked Solana - $SLNC (-3.78%)
• CoinShares Physical Staked Chainlink - $CCHA (-4.08%)
• CoinShares Physical Uniswap - $CIWP
• CoinShares Physical Staked Cosmos - $COMS (-3.58%)
• CoinShares Physical Staked Polygon - $CPYG (-2.96%)
• CoinShares Physical Staked Algorand - $RAND (-4.97%)
• CoinShares Physical Top 10 Crypto Market ETP - $CTEN (-1.34%)
• CoinShares Physical Smart Contract Platform ETP - $CSSC (-1.23%)

Advantages for investors in Germany

• Access via Xetra and brokers such as Trade Republic, Scalable Capital, ING etc.
• Transparent fee structure: no hidden costs - only a simple annual management fee
• Easy to declare for tax purposes thanks to treatment as a standard security
• Physically secured and held in institutional custody
• Staking rewards possible for selected ETPs

Conclusion: Simple, secure and regulated access to crypto

CoinShares Physical ETPs offer German investors one of the most trustworthy and transparent ways to invest in cryptocurrencies - without technical hurdles, without private keys, without wallet management. This means:

• Crypto as a portfolio component, just like shares or ETFs
• Ideal for long-term investors with a focus on security and regulation
• Available via leading German brokers and platforms