The next crypto recovery trade might be equities instead of tokens
Crypto markets are weak: total market cap is down more than 36% year over year, altcoins are about 45% below their October 2025 peak, and Bitcoin is tracking its worst annual start in over a decade as capital shifts toward AI stocks and IPOs. After years of waiting for a broad altseason, many traders face fast-fading token narratives, unlock pressure, and brief memecoin rallies. A growing alternative is to own crypto-linked equities that earn from activity rather than token appreciation. On June 25, ARK bought about $5.4 million across Coinbase, Circle, Bullish, and Robinhood despite their declines. Coinbase remains exposed to trading volumes and custody, but first-quarter transaction revenue fell 40% and it posted a second straight loss. Circle’s value ties to USDC circulation and reserve yields, with USDC at $77 billion in Q1. Robinhood’s crypto revenue and trading volume dropped sharply. Bullish reported strong institutional trading metrics. The equity trade may reprice faster if crypto activity rebounds, while a prolonged crypto winter keeps these businesses under pressure.
