A local media report claims that Q1 2025’s four worst-performing ETFs in the UK were all related to crypto and blockchain. These products track more nebulous market indicators, not specific tokens.
However, global recession fears are also spurring a downturn in ETFs tied to specific assets. This data from Britain is only one piece of the puzzle, but it doesn’t suggest an optimistic outcome in the near future.
Crypto ETFs Fall in the UK
Since the SEC first approved the Bitcoin ETF over a year ago, this asset category has completely changed the crypto space. These products recently saw huge inflows, and growing numbers of TradFi ETF investors want exposure.
However, according to a local media report, a few crypto products are the worst-performing ETFs in the UK in Q1 2025.
Morningstar, a British finance publication, claimed that Q1 2025’s four lowest-performing ETFs in the UK were crypto and blockchain-related.
The worst offenders were VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP), Global X Blockchain UCITS ETF (BKCH), and iShares Blockchain Technology UCITS ETF (BLKC).
It is very important to note that all these ETFs are tied to the crypto market in general, not specific tokens. As friendlier US regulators have signaled fresh approvers, issuers are launching more of these indirect products.
Three of the four worst-performing ETFs in the UK are traded by major crypto-related issuers.
Still, fears of a global recession are causing losses to standard crypto ETFs as well. The threat of Trump’s tariffs caused investors to pull hundreds of millions from Bitcoin and Ethereum ETFs, and these inflows haven’t returned yet.
Issuers have still signaled their long-term confidence in the underlying assets, but the positive growth hasn’t materialized.
All that is to say, this recent data from the UK could give valuable insights into the global crypto ETF market. None of these results paint an optimistic picture, and the bearish news from token-specific ETFs only makes the market seem more dismal.
It may be too soon to say, but institutional crypto funds may be in for a contraction.
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