ETFs and Crypto Show Mixed Performance in Q2

In a recent report by Canaccord Genuity, the digital asset landscape displayed mixed performance in Q2, with crypto assets underperforming compared to traditional assets despite significant developments like Bitcoin halving and the SEC’s approval of spot ETFs. Bitcoin’s price remained stable due to regulatory and macroeconomic challenges, although institutional interest in crypto has grown. The approval of spot Bitcoin and Ethereum ETFs is expected to attract more institutional investment, potentially influencing future price action.
Q2 saw a slowdown in BTC ETF inflows, but institutional interest continues to rise, with major hedge funds now trading or holding spot BTC ETFs. The SEC has also approved initial applications for around eight spot Ethereum ETFs, with trading expected to begin by July 8, potentially driving Ethereum’s price.
Digital assets have become a key topic in the 2024 U.S. elections, and progress is being made on a stablecoin bill. The digital asset ecosystem remained resilient, with notable advancements in Layer 2 solutions and infrastructure developments improving accessibility. Canaccord Genuity remains optimistic about the future of digital assets, citing evolving regulations and growing institutional interest as positive factors.