Insights

Bitcoin futures are slightly firmer,. Overall, leveraged crypto ETFs significantly underperformed their spot counterparts across Bitcoin, Ethereum, Solana, and XRP exposures as recent market weakness amplified downside returns. While fund flows remain strongest in select Bitcoin, Solana, and XRP products, investors have generally reduced exposure to several large spot Bitcoin and Ethereum ETFs during the recent pullback, suggesting continued caution despite positive three-month performance trends in many of the underlying digital assets.

Crypto ETFs broadly traded lower alongside spot prices. Spot Bitcoin ETFs declined approximately 1.2%-1.5% on the day, with iShares Bitcoin Trust (IBIT) down 1.26%, Fidelity Wise Origin Bitcoin Fund (FBTC) lower by 1.27%, Grayscale Bitcoin Trust (GBTC) declining 1.34%, and Bitwise Bitcoin ETF Trust (BITB) falling 1.33%. Fund flow data reflected continued institutional caution, with notable daily outflows from several major spot Bitcoin products including IBIT, FBTC, and GBTC.