A local media report indicates that the worst-performing ETFs in the UK in Q1 2025 were all related to crypto and blockchain. These ETFs track general market indicators, not specific tokens, and are experiencing a downturn due to global recession fears. Despite the approval of the Bitcoin ETF by the...
A recent report from a local media outlet has shed light on the worst-performing Exchange-Traded Funds (ETFs) in the UK during the first quarter of 2025. Surprisingly, all of the ETFs that took a hit were related to the crypto and blockchain sectors. These ETFs, which typically track general market indicators rather than specific tokens, have been facing a downturn amid growing fears of a global recession.
Despite the recent approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC), the overall crypto ETF market is facing significant challenges. Investors have been pulling out funds from Bitcoin and Ethereum ETFs, leading to notable outflows. This trend is concerning and may signal a pessimistic outlook for the near future, potentially impacting the global crypto ETF market as a whole.
According to a report by Morningstar, a prominent British finance publication, the four lowest-performing ETFs in the UK in Q1 2025 were all related to crypto and blockchain. Among the worst offenders were the VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP), Global X Blockchain UCITS ETF (BKCH), and iShares Blockchain Technology UCITS ETF (BLKC).
It is essential to emphasize that these ETFs are not directly tied to specific tokens but rather represent the broader crypto market. Despite friendlier regulatory developments in the US, leading to the launch of more indirect crypto products, the ongoing global economic uncertainties have taken a toll on standard crypto ETFs.
Recent geopolitical events, such as concerns over potential tariffs imposed by the former US President Trump, have prompted investors to withdraw hundreds of millions from Bitcoin and Ethereum ETFs. The market has yet to recover from these outflows, despite issuers expressing long-term confidence in the underlying assets.
Overall, the data from the UK offers valuable insights into the challenges facing the global crypto ETF market. The bearish performance of token-specific ETFs further exacerbates the market's dim outlook, raising concerns about a potential contraction in institutional crypto funds.