Bitcoin ETFs’ 100% Rally Raises More Questions Than Answers | US Crypto News

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and settle in—this one might make you rethink what you thought you knew about crypto. In the past year, Bitcoin has surged dramatically, posting returns that rival traditional safe-haven assets. Yet, while some see a story of stability, others see lingering questions about risk, reward, and where cryptocurrencies really belong in a portfolio.

Crypto News of the Day: Crypto Returns Spark Fresh ‘Store of Value’ Debate

Since January 2024, Bitcoin ETFs have surged roughly 100%, mirroring the returns of physical gold ETFs, while the S&P 500 returned just 45%. This performance has sparked a fresh debate over Bitcoin’s role in investor portfolios: is it a “risk-on” asset like stocks, or a “store of value” like gold?

Nate Geraci, president of the ETF Store, highlighted the surprising parity, with the striking similarity to gold returns prompting investors to reassess Bitcoin’s traditional narrative.

While Bitcoin is widely viewed as a volatile, high-risk asset, its ETF performance over the past year has aligned with one of the most stable investment vehicles in history. Against this backdrop, investors weigh whether the risk is worth the return.

“I think the question for cripto is… especially ETH. Do you want to hold a high-volatility asset for that kind of return? ETH flat or down for the past 4/5 years,” one user chimed.

This remark highlights the challenge for investors, who see Bitcoin’s rally offering gold-like gains, but but the risks due to volatility remain a persistent threat for crypto as an asset class. Risk-adjusted returns remain a key factor when evaluating crypto’s place in a diversified portfolio.

Risks notwithstanding, BlackRock’s recent People & Money report reveals the growing retail appetite for ETFs, especially among younger investors. According to Nate Geraci’s summary:

ETFs are the fastest-growing retail investment product over the last five years.
19 million US adults are likely to buy ETFs in the next 12 months, with 44% being first-time buyers, 71% under 45 years old.
Equity and crypto will be the most popular allocations among these new investors, with 47% expected to invest in crypto ETFs.

This data highlights a generational shift in investing behavior. Younger investors are increasingly incorporating crypto into their portfolios alongside traditional assets. This shows that the market is growing faster than conventional wisdom suggests.

BlackRock Moves and Market Sentiment

Institutional activity adds another layer to the debate. Whale tracker reports indicate that BlackRock recently deposited 4,880 BTC, worth approximately $467 million, and 54,730 ETH valued at nearly $176 million into the Coinbase exchange.

The transaction marks the second move this month. Barely two weeks ago, the asset manager transferred 2,042 BTC, worth $213 million, and 22,681 ETH, valued at $80 million, to the same exchange.

Moving tokens to exchanges often suggest possible plans to sell, a move that could be bearish for Bitcoin and Ethereum prices.

“Last time they did this, the market dipped soon after. Now with Bitcoin sitting near $104K… is sub-$100K next?” Kyle Doops posed on X after the initial transaction.

Nonetheless, large transfers from major fund managers to exchanges could also mean strategic rebalancing.

With both possibilities likely to weigh on near-term price sentiment, it is worth noting that concentrated institutional holdings could amplify market swings, particularly in high-volatility environments.

Should Bitcoin be treated like digital gold, offering portfolio stability? Or is it a high-risk, high-reward asset akin to equities?

Looking ahead, retail and institutional flows, ETF innovation, and macroeconomic conditions will likely define crypto’s trajectory in 2026. As younger investors increasingly allocate to crypto ETFs, the market may see both rapid growth and heightened volatility, reinforcing the need for careful portfolio strategy.