Photo courtesyKeith Medlock, Vice President Senior ETF Investment Strategist
State Street Global Advisors will present the first U.S.-listed ETF, SPY, at the V Funds Society Investment Summit in Houston to highlight its democratic, profitable, and liquid positioning.
During the event, which will take place on March 6 at the Hyatt Regency Houston Galleria,Keith Medlock, Vice President Senior ETF Investment Strategist will present the strategy that “offers a number of potential benefits for investors seeking core US equity exposure, including record liquidity” and more than 30 years of proven experience, according to the firm’s statement.
Backed by the S&P 500® Index, the strategy “opened the door to markets that were previously inaccessible to most investors before 1993.”
Keith Medlock
He is a Senior Strategist at State Street Global Advisors Global SPDR Business. He is an expert in ETFs, investment management and research, and portfolio construction. In his role, he conducts economic and market studies to generate strategic and tactical investment opportunities across different asset classes, with a particular focus on U.S. equities, sectors, and industries. He collaborates with SSGA’s distribution, research, and portfolio management teams.
Prior to joining SSGA in 2013, he was a Business Development Executive with Northern Trust’sFlexShares Exchange Traded Funds. He has worked as a Divisional Managed Accounts Consultant at UBS, a Trust Investment Officer at Bradford Trust Company, and an Economics instructor at the University of Arkansas.
Medlock holds a degree in Mathematics and Economics from the University of Arkansas and has the CMT, CAIA®, CIMA®, and AIF® certifications. He also holds FINRA Series 7 and 66 licenses.
For four decades, State Street Global Advisors has served governments, institutions, and financial advisors worldwide, positioning itself as the fourth-largest asset manager in the world with $4.72 trillion1 (trillions in English), according to the firm’s statement.
1This figure is presented as of December 31, 2024 and includes ETF AUM of $1,577.74 billion USD of which approximately $82.19 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.
The Trump administration is once again boosting the crypto market with a new initiative. Over the weekend, the U.S. president announced the creation of a “Strategic Cryptocurrency Reserve,” which will include digital assets such as Bitcoin, Ethereum, Ripple, Solana, and Cardano. These new steps align with Donald Trump’s goal of making the U.S. the “crypto capital of the world.”
As a result of this announcement, the price of some cryptocurrencies surged: Bitcoin reached $93,000, while Ripple and Cardano saw significant gains, and Ethereum rose by 11%.
Without a doubt, the initiative announced by Trump has revitalized the entire industry, as crypto market sentiment had hit rock bottom. “The Crypto Fear and Greed Index had dropped from 55 (neutral) to 21 (extreme fear) in less than a week. Last Friday’s Bybit hack shook investor confidence, compounded by growing uncertainty over tariffs on Mexico and Canada, which will indeed take effect, adding to market anxiety,” acknowledged Simon Peters, an analyst at eToro, just three days ago.
This negative sentiment was also evident in Bitcoin’s price, which was holding at the $92,000 support level. The cryptocurrency has fallen 20% from its all-time high of $109,300. According to experts, a 35% correction could bring it down to around $70,000.
The SEC Clearly Shifts Its Stance on Cryptocurrencies
Crypto industry experts highlight that these initiatives reflect a shift in Trump‘s stance on cryptocurrencies, from initial skepticism in 2019 to active support today, with the declared goal of making the U.S. the “crypto capital of the world.” A clear example of this shift is that Trump is set to host the first Cryptocurrency Summit at the White House next Friday—the first such event organized by a U.S. president.
Another example of this change in approach involves Coinbase. Last week, the SEC announced that it had agreed to dismiss its enforcement case against the company. “If incoming SEC Chairman Paul Atkins approves the decision, the dismissal will mark the end of the ‘regulation by enforcement’ approach led by former SEC Chairman Gary Gensler,” explains Frank Dowing, Director of Analysis for Next Generation Internet at ARK.
According to Dowing, during Gensler’s tenure—from April 2021 to January 2025—the SEC filed numerous cases against Coinbase and its competitors, alleging that digital asset exchanges and staking businesses violated U.S. securities laws. “Despite good-faith efforts to comply with ambiguous securities regulations applied to digital assets, cases against these companies continued. Now, a crypto-friendly administration has taken the lead. Several bills on stablecoins and digital asset market structure are expected to move quickly through the Republican-controlled Congress, providing regulatory clarity for companies in the sector. In our view, the shift toward common-sense legislation and regulation will accelerate the adoption of public blockchains, benefiting investment strategies with significant exposure to digital assets,” Dowing notes.
Crypto ETFs: An Unstoppable Success
A clear sign of the favorable environment for crypto assets is the surge in passive investment vehicles. According to State Street projections, growing demand for crypto ETFs will soon surpass assets in precious metal ETFs in North America, making them the third-largest asset class in the ETF industry—behind only stocks and bonds.
Bitcoin and Ethereum ETFs were launched in the U.S. just last year, yet they have already accumulated $136 billion in assets, despite the recent market correction. State Street also forecasts that the SEC will approve more crypto-specific ETFs this year, with Litecoin, XRP, and Solana being the most likely to receive spot ETF approval, given that multiple U.S. ETF providers have already filed applications for these products.
This week has made it clear that we are in a new multipolar world, marked by a geopolitical and multilateral relations realignment. In this scenario, populism and politics generate increasing noise, which the market, for its part, strives to ignore. According to investment firms, this context calls for investors to rethink their roadmaps. What are they proposing?
For Michael Strobaek, Global CIO, and Nannette Hechler-Fayd’herbe, Head of Investment Strategy, Sustainability, and Research, and EMEA CIO at Lombard Odier, “a geopolitical realignment could significantly reshape the global economy and financial markets, leading to more balanced risk-adjusted returns across all asset classes and highlighting the benefits of broad diversification for asset allocators.”
According to these experts, investors are navigating a new post-Cold War multipolar era, where risk-adjusted returns are converging across major asset classes. “The global liberal democratic order seems to be taking a back seat to short-term national and economic interests, led by the new U.S. administration. Asset allocators must manage risk diligently and diversify broadly, leveraging alternative assets whenever possible,” stress experts at Lombard Odier.
For Gianluca Ungari, Head of Hybrid Portfolio Management at Quantitative Investments (Vontobel), and Sven Schubert, Head of Macro Research at Quantitative Investments (Vontobel), markets are moving quickly in response to this new environment. “Despite the initial impact of the tariff announcement on Canada, Mexico, and China—followed by a 25% increase on steel and aluminum imports starting March 12—the markets have absorbed the news relatively well. The direction of market movements in early February reflects the economic effects of the U.S. tariff hikes,” they note.
February now ends with the idea of reciprocal tariffs and ongoing negotiations between the U.S. and Russia to end the war in Ukraine. Because of this, Ungari and Schubert believe investors must stay vigilant. “While we maintain a constructive market outlook and a long position in equities, hedging strategies could be crucial for performance this year. So far, our tail hedges, such as the Japanese yen and gold, have performed well. Meanwhile, European equities have outperformed in recent weeks, driven by expectations of fiscal stimulus after the German elections and Trump’s decision to delay tariffs on Canada and Mexico,” they explain.
Enguerrand Artaz, strategist and fund manager at La Financière de l’Échiquier (LFDE), acknowledges that uncertainty has surged to levels even higher than during the trade tensions of 2019. In his view, equities should rotate towards more defensive sectors that are less exposed to global trade, such as utilities and real estate. “This scenario is not necessarily negative for European small caps, which are, on average, less exposed to international trade and more sensitive to falling interest rates,” he notes.
Additionally, Artaz believes that in a diversified allocation, it would be advisable to increase the proportion of fixed-income assets. “This is a logical move, as a tariff hike is both deflationary and recessionary for affected countries. An escalation could prompt the ECB to cut rates even further. While interest rates have shown resilience so far, if uncertainty persists, it could affect investor sentiment.” Artaz concludes that “for markets, an unpleasant but defined scenario—such as a fixed and final tariff increase—is often better than ambiguity fueled by political volatility.”
Market Behavior
According to Axel Botte, Head of Market Strategy at Ostrum AM (Natixis IM), financial markets appear isolated from the erratic communications coming from Donald Trump. “The flattening of the yield curve has led to a generalized tightening of spreads. Despite the Fed’s stance of maintaining the status quo and the restrictive policy of the Bank of Japan, monetary easing remains the predominant global trend. However, the sharp rise in gold prices sends a lone note of concern,” says Botte.
This global instability is also reflected in oil prices. In fact, the price of West Texas Intermediate (WTI) crude oil reached $72.80 per barrel on February 19, 2025, closing at $72.05 per barrel. “The increase in WTI crude prices is due to a combination of geopolitical, climatic, and supply-demand factors. Uncertainty surrounding production in Russia and the United States, along with the possibility of OPEC maintaining supply restrictions, has created a favorable environment for price escalation,” explains Antonio Di Giacomo, Senior Market Analyst at XS.com.
Additionally, in his view, investors have responded to these events with increased financial speculation in oil. “Market volatility has led to a higher volume of futures contract trading, contributing to price fluctuations. In this sense, traders are closely watching for any signs of changes in production policies from major exporting countries,” says Di Giacomo.
Another asset reflecting this context is gold. “Its price will remain high throughout 2025 amid increased central bank purchases, growing concerns over the harmful effects of U.S. tariffs, and demand for newly introduced gold ETFs. However, it could weaken if the interest rate differential between the U.S. and the rest of the world remains wide, which could keep the dollar strong, exerting downward pressure on gold. That said, this is not our base-case scenario,” adds Peter Smith, Senior International Equity Strategist at Federated Hermes.
0100 Europe will return to Amsterdam from April 2 to 4, 2024, bringing together 700 LPs, GPs, and SPs from the global private equity and venture capital industry. Organized by Zero One Hundred Conferences, this premier event offers an exclusive platform for top investors and industry leaders to connect and analyze emerging trends, investment strategies, and key market shifts shaping the future of private markets.
As the industry faces challenges related to liquidity and exits, fundraising uncertainty, valuation corrections, regulatory changes, and macroeconomic volatility, two investment strategies stand out as critical focus points for 2025: growth investing and the rise of the secondary market, as highlighted by key speakers at the upcoming conference.
The Rise of the Secondary Market
The secondary market has grown 16 times over the past 15 years, becoming a key liquidity tool. Joaquín Alexandre Ruiz, Head of Secondaries at the European Investment Fund (EIF), explains: “We have gone from a $10 billion market in 2009 to over $160 billion last year, with projections reaching $200 billion in 2025. This growth is largely driven by low capital distribution and the liquidity needs of LPs.”
With GP-led transactions now representing half of the market, continuation funds, portfolio sales, and partial sales have become essential liquidity solutions. Ruiz highlights the impact of the secondary market on industry dynamics: “Securing liquidity in today’s market requires creativity. Many GPs are using the secondary market not only to develop strategic assets but also to return capital to LPs.”
Growth Investing in Europe: Bridging the Capital Gap
The growth capital ecosystem in Europe is at a critical juncture, as large exits remain scarce and investor caution slows momentum. Shu Nyatta, Founder and Managing Partner of Bicycle Capital, compares this challenge to Latin America, where his firm invests: “The growth capital gap is real in both Latin America and Europe, but for different reasons. Latin America has never had a steady flow of growth capital, while Europe faces a sense of unmet expectations due to the lack of large exits.”
Despite having world-class early-stage venture funds, Europe’s growth equity markets must evolve. Nyatta emphasizes that the next wave of growth capital must focus on capital efficiency and resilience to ensure long-term success: “The next wave of growth capital must prioritize unit economics, resilient business models, and capital efficiency to drive sustainable success.”
A Gathering of Industry Leaders
0100 Europe will provide an in-depth analysis of how fund managers, investors, and institutions are addressing current challenges. Pavol Fuchs, CEO of Zero One Hundred Conferences, highlights the event’s role in shaping the industry’s future:
“As private markets evolve, adaptability is key. Finding the best opportunities—whether in the secondary market, growth investments, or co-investments—depends on strong, long-term relationships built at events like this. The 0100 Europe conference provides an exclusive environment where investors and fund managers can exchange strategies, explore new opportunities, and connect with the most influential players in the industry.”
BBVA Corporate & Investment Banking (CIB) has added Sarah Swammy to its team as Managing Director of BBVA Securities Inc. (BSI) with the goal of further developing its broker-dealer infrastructure and strategically expanding its institutional business platform, the bank announced in a statement.
“We are very proud to have Sarah join us in expanding our business in the U.S.,” said Regina Gil Hernández, Head of BBVA CIB USA. “She will be key in expanding BSI’s broker-dealer infrastructure and product capabilities to better serve the business needs of our institutional clients,” she added.
Swammy has more than 20 years of experience in capital markets and risk management. She has held senior roles in operations management and business oversight, specializing in risk analysis, global markets, risk controls, and capital markets at leading international financial institutions such as Bank of America, Sumitomo Mitsui Banking Corporation, Wells Fargo, State Street, and BNY Mellon.
With her addition, BBVA CIB continues to enhance value for its institutional clients, including banks, insurance companies, and asset managers, both in the U.S. and internationally.
Swammy will report to Lucho Alarcón, Head of Global Markets USA at BBVA, and Peter Jensen, CEO of BSI.
The U.S. securities regulator has created the Cybersecurity and Emerging Technologies Unit (CETU) to focus on combating cyberattacks and protecting retail investors from “malicious actors in the emerging technologies space,” the SEC announced in a statement.
The new department replaces the Cybersecurity and Crypto Assets Unit and is led by Laura D’Allaird. It consists of approximately 30 fraud specialists and attorneys from multiple SEC offices.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Assets Task Force, led by Commissioner Hester Peirce,” stated Mark T. Uyeda, the SEC’s interim chairman, in the announcement.
D’Allaird was previously Co-Director of the Cybersecurity and Crypto Assets Unit. According to her LinkedIn profile, she has been with the SEC since 2016 and has also served as an advisor to SEC Commissioner Jaime Lizárraga, a member of the Democratic Party.
“The unit will not only protect investors but also facilitate capital formation and market efficiency, paving the way for innovation to grow. It will root out those who seek to misuse innovation to harm investors and undermine confidence in new technologies,” added Uyeda.
Uyeda’s appointment—a known cryptocurrency supporter—as interim SEC chairman suggested a likely easing of the regulator’s policy on digital assets. He is expected to hold the position until Trump’s nominee to succeed Gary Gensler, Paul Atkins, completes his confirmation process in the Senate.
According to the SEC’s official statement, CETU will leverage “the staff’s considerable expertise in financial and cyber technology to combat misconduct related to securities transactions” across several priority areas. These include fraud involving emerging technologies such as artificial intelligence and machine learning, the use of social media or fake websites to commit fraud, hacking to obtain material non-public information, the takeover of retail brokerage accounts, and fraud related to blockchain technology and crypto assets.
State Street Corporation and Mizuho Financial Group have announced an agreement under which State Street will acquire Mizuho‘s global custody business and related activities outside Japan. According to the companies, these businesses support the overseas investments of Mizuho‘s Japanese clients.
Currently, Mizuho operates its global custody business and related services outside Japan through its local subsidiaries: Mizuho Trust & Banking (Luxembourg)—owned by Mizuho Trust & Banking—and Mizuho Bank (USA), a wholly owned subsidiary of Mizuho Bank, Ltd. Both entities manage approximately $580 billion in assets under custody and $24 billion in assets under management.
According to the companies, following this transaction, Mizuho will leverage its expertise and network as one of Japan’s leading financial institutions to continue providing its Japanese clients with reliable custody services for their domestic assets while collaborating with State Street on global custody and related services.
The transaction is expected to be completed in the fourth quarter of 2025, as it remains subject to regulatory approvals and other closing conditions.
Key Statements on the Transaction
“Japan, Luxembourg, and the United States are key markets for State Street. This transaction demonstrates our strong commitment to accelerating our growth in these markets. Mizuho’s decision to entrust State Street with serving its valued clients reaffirms its confidence in our high-quality service, industry-leading capabilities, and commitment to product innovation and technology investment. With 35 years of experience in Japan and Luxembourg, along with our long-standing presence in the United States, State Street is well-positioned to support the global growth and business transformation of Mizuho‘s clients,” said Stefan Gmür, Head of Asia-Pacific and Head of Strategic Business Growth at State Street.
Meanwhile, Tsutomu Yamamoto, Senior Executive Officer and Head of the Global Transaction Banking Unit at Mizuho, added: “In today’s increasingly complex investment landscape, clients require global custody providers with significant scale and deep expertise. After careful evaluation, we have decided to transfer our global custody business to State Street, a recognized leader with an established presence in Japan. This strategic move will ensure that our clients benefit from State Street‘s global platform and extensive expertise.”
According to Hiroshi Kobayashi, Head of Japan at State Street, this transaction aims to meet clients’ needs not only in global custody but also in data management, risk and performance analysis, currency management, and securities financing.
“We look forward to ensuring a seamless transition for Mizuho’s clients. As the acquired business integrates into our global operating model, we are confident that our increased scale will allow us to further expand our technological and service capabilities, enhancing the experience for both existing and new clients in Japan,” Kobayashi stated.
State Street’s Business in Japan and Luxembourg
State Street established its business in Japan more than 35 years ago. With an experienced team of over 500 employees across its offices in Tokyo and Fukuoka, State Street provides Japanese institutional investors with a full range of services, including trusts, global custody, middle- and back-office outsourcing, data management, trading solutions, and financing. State Street also operates a center of operational excellence in Fukuoka, which has been supporting clients in Japan and the broader Asia-Pacific region for over a decade.
Additionally, State Street has been present in Luxembourg for 35 years, offering services such as fund administration, custody, and transfer agency. Headquartered in Boston, Massachusetts, State Street operates globally across more than 100 markets.
The Argentine firm Puente has just published its Global Equities Report, a short and effective document that summarizes its outlook for the coming months and recommends being highly selective to avoid short-term risks.
Puente‘s vision for the U.S. stock segment looks optimistic for 2025 but more modest compared to the previous year, in a scenario where growth is expected to slow down and the interest rate stands at 4.5%. This continues to favor global fixed income, they indicate, given the high nominal yields that result from it.
The asset management company prioritizes sectors such as energy, technology, industrial, and financial, but with a focus on companies with strong fundamentals, high dividends, or lower valuations (“value”), to reflect that short-term risks have not yet dissipated and that selectivity remains crucial.
“Stock valuations are ‘expensive’ compared to their historical averages, with the price/earnings ratio for the next 12 months of the S&P 500 at 22.1 times, exceeding the historical average of the last 5 years (19.8 times) and the last decade (18.2 times). Meanwhile, the consensus analyst estimate for the S&P 500 stock index projects a level of 6,510 points by the end of 2025,” says Puente.
The January Snapshot and Earnings Season
The main U.S. stock indices saw widespread gains in the first month of the year, with the S&P 500 reaching a new all-time high. In this regard, the Dow Jones led the trend with a 4.6% increase, followed by the S&P 500 with a 2.3% rise, and the Nasdaq climbing 0.7%. With these results, the indices have accumulated gains of 4.1%, 2.5%, and 1.1%, respectively.
According to analysts at Puente, the corporate earnings season for the fourth quarter of 2024 is well underway, as 62% of the companies that make up the S&P 500 index have reported their financial statements. So far, 77% of these companies have reported earnings that exceeded analysts’ consensus projections. In terms of revenue, 63% of companies have surpassed quarterly revenue expectations.
“Thus, companies have reported a year-over-year earnings per share (EPS) growth of +16.4% to date. On the revenue side, a +5.2% year-over-year increase is evident for the quarter. The outlook for this year appears favorable for equities in general. For the first quarter, EPS growth of +8.7% year-over-year is expected, along with a +4.5% increase in revenue,” the report states.
Puente believes that the upward trend will strengthen, with stronger performance in the second half of the year, as long as macroeconomic conditions remain stable. Thus, EPS growth of 13% year-over-year and a 5.5% increase in revenue are projected for 2025.
GPTAdvisor, a financial advisory firm powered by artificial intelligence, has announced its expansion into the Americas with the addition of Camila Rocha as Co-founder & General Manager for the region, according to a statement.
“This strategic move marks the beginning of a new phase for the company, strengthening its presence in the region and bringing its artificial intelligence platform to more businesses and professionals,” the firm stated.
GPTAdvisor already has clients in the region, such as the Uruguayan firm AIVA, and highlights that the opening of its office in Mexico reinforces its commitment to the American market. The company aims to offer solutions tailored to local needs, optimizing financial decision-making through advanced artificial intelligence.
With extensive experience in the technology and financial sectors, Camila Rocha will lead GPTAdvisor’s expansion and localization strategy in the Americas.
“The hot topic today is artificial intelligence, but companies still don’t know how to integrate it into their daily operations. GPTAdvisor offers a proven solution that addresses precisely this need, providing the AI applicability layer that is key to business success today,” said Rocha.
“The Americas represent a strategic opportunity for GPTAdvisor. With Camila leading this expansion, we are confident that we can understand and respond to the specific needs of the local market, offering a truly relevant solution for our clients,” stated Salvador Mas, CEO of GPTAdvisor.
Currently, GPTAdvisor serves well-known clients in Europe, including Santander, Bankinter, and ANDBANK, among others. With its expansion into the Americas, the wealthtech aims to add the region’s leading financial institutions to its client portfolio, further solidifying its leadership in AI-driven financial advisory.
Operations in the Americas began in February 2025, and the company is already working on adapting its platform to provide closer and more efficient support to users in the region.
Despite 58% of U.S. pension plan managers stating that their funding status has improved over the past year, 68% indicate they will increase—or are likely to increase—contributions this year. Additionally, 66% say they will raise their budget and focus on scenario modeling, asset and liability management, and stress testing over the next two years.
These findings come from a survey conducted by Ortec Finance among senior executives of U.S. pension funds, whose plans collectively manage $670.4 billion in assets.
The increase in spending on scenario modeling is driven by expectations of heightened risk, with 84% of managers predicting a high-risk profile this year—26% of whom anticipate a drastic rise in risk. Furthermore, half of the executives report that their risk profile slightly increased last year.
Around one in five surveyed U.S. pension plans admitted to lacking sufficient liquidity to withstand adverse scenarios. Meanwhile, 60% believe they have enough liquidity for most situations but acknowledge that extreme scenarios could pose challenges.
Short- and Long-Term Risks
Surveyed managers perceive risks over different timeframes, but their primary concern is long-term liquidity risk. About 62% consider it the biggest risk faced by their plans, while 20% cite short-term liquidity as their primary concern. Only 18% view short- and long-term risks as roughly equal.
The increased exposure to private assets is one of the key reasons for liquidity concerns, especially among defined benefit plans.
Among the managers surveyed, 74% believe that the risk of unfunded commitments poses either a significant or moderate threat to the retirement pension sector over the next three years.
Despite these liquidity concerns, 56% say liquidity is already well managed, and 32% believe other risks are more pressing. Only 4% identify liquidity risk as a top priority, while 8% do not see it as a major concern.
According to the Ortec Finance survey, 74% expect private equity distributions to increase over the next three years, and 90% say this will impact their pacing strategy.
For pension funds, investing in private assets creates liquidity constraints. However, 40% cite returns and illiquidity premiums as the primary reasons for investing in private assets. Meanwhile, 34% point to diversification as the most important factor, and 26% emphasize inflation protection.
Richard Boyce, Managing Director for North America at Ortec Finance, concluded, “It is encouraging to see that pension funds plan to increase their budget for stress testing and scenario modeling to uncover risks, find new opportunities, and navigate uncertainty.” Boyce believes that with rising geopolitical and market uncertainty, “scenario modeling is one of the best tools to help pension funds navigate these uncharted waters.”
