The Bitcoin Spot ETF highlighted the dynamics this quarter. April’s net inflows of $2.02 billion were decisively reversed. Outflows of $2.41 billion in May and $4.29 billion in June brought net redemptions to $4.67 billion in the second quarter, the largest quarterly outflow since the spot product was launched in January 2024, and June alone was a record month for redemptions. The Ethereum ETF followed suit, with net outflows of $690 million. This pattern indicates profit-taking by institutional investors and capital rotation into traditional markets, rather than a structural exit from the asset class. A continued return to positive net flows in the third quarter remains an important signal to watch.
Second quarter review
CoinDesk 20 (CD20) fell 17.9% to $1,602, while Bitcoin fell 14.2% to $58,544. This quarter marked a clear shift from the first quarter, when cryptocurrencies primarily tracked traditional risk assets. In the second quarter, the S&P 500 and Nasdaq 100 rose 14.9% and 27.2%, respectively, supported by rotation into AI and technology stocks, while gold, along with digital assets, fell 14.2%. Against this backdrop, the inability of cryptocurrencies to participate in broader risk asset recovery became a defining feature of the quarter.
Looking at the CoinDesk 20 constituents individually, two assets posted positive returns in the second quarter. NEAR led all constituents with a 49.8% gain, driven by increased investor interest in the company’s private AI infrastructure story. XLM followed with 12.6%. ICP (-9.1%), BNB (-11.5%), SOL (-11.5%), $ghost (-13.4%), Bitcoin (-14.2%).
Component highlights
