Bitcoin Set for Second Quarterly Gain as Smaller Tokens Lag by the Most Since 2020

Bitcoin registered a second straight quarterly gain, tightening its grip on crypto markets as smaller tokens nurse losses.

The largest digital asset rose 7% in April through June, aided by optimism about increasing demand if BlackRock Inc., Fidelity Investments, and others succeed in their efforts to start spotting Bitcoin exchange-traded funds in the US.

In contrast, smaller tokens have been weighed down by the US Securities and Exchange Commission’s growing list of coins viewed as unregistered securities, a designation that can make those assets harder to trade. Bitcoin doesn’t face a similar overhang because American officials view it as a commodity.

An index comprising the bottom half of the top 100 tokens by market value dropped 25% this quarter. The divergence between Bitcoin’s performance over the period and the latter gauge was the widest since the last three months of 2020. That’s even with an end-of-quarterly rally in tokens such as Bitcoin Cash and Litecoin.

Small Isn't Beautiful | Bitcoin's quarterly performance tops an index of smaller tokens by most since 2020