Crypto ETFs Among Worst Performers: Stocks & Bonds Not Spared in 2025 Downturn

Investors seeking refuge from market volatility have found little solace in 2025. While traditional assets have faced headwinds, crypto exchange traded funds have been among the worst performers in the ETF space in 2025. The promise of diversified exposure to the digital asset market has soured for many, with significant losses reported across the board. With Bitcoin retreating below $30K and other cryptocurrencies showing an increasing vulnerability, the performance of crypto ETFs reflects the wider anxieties surrounding the digital currency landscape.

The worst-performing ETF in August was the £110 million VanEck Crypto & Blockchain Innovators, which lost 15.27%. The passively managed VanEck ETF fell further as the crypto winter continues to bite. This underscores the inherent risk associated with investments tied to the volatile cryptocurrency market, even when packaged within a seemingly more stable ETF structure. But the pain hasn't been limited to crypto.

Stocks & Bonds follow crypto ETFs with poor performance. Alongside crypto-based investment vehicles, U.S. equities have declined by about 20% since the start of 2025, impacting a wide range of investment portfolios. This broad market downturn suggests that macroeconomic factors, such as inflation and rising interest rates, are contributing to the poor performance of both traditional and alternative asset classes. Investors are urged to exercise caution and conduct thorough due diligence before allocating capital to any investment, particularly in turbulent market conditions.