ETFs challenge HODL strategy

March 26, 2026

 

Reading time: 5 minutes

Crypto’s $2.4T surge remains short-lived as war uncertainty bites back

Key points:

  • A complete resolution still remains far-fetched despite the U.S and Iran both showing willingness to engage in discussions.

  • Bitcoin, Ethereum, and the wider crypto market, are again in the hands of sellers.

News - The crypto market is riding a wave of volatility, thanks to shifting geopolitical signals. Following U.S President Donald Trump’s push towards negotiations with Iran, crypto’s total market capitalization surged past $2.4 trillion. Iran, too, signaled an openness to dialogue. However, not for a temporary ceasefire. Rather, a complete end to the war, strictly on its own terms.

Market’s changing sentiments - This bullish momentum proved short-lived though. At press time, the global crypto market cap had slipped back to $2.4 trillion. Bitcoin, which had rallied to $72,000, dropped to around $69,000 again.

Ethereum’s price echoed similar sentiments, despite its previous gains tied to easing tensions in West Asia. Its trading volume dropped by more than 8% to $16.88 billion while its price fell by 2.38% in just 24 hours. 

This pullback came despite notable whale activity seen on 25 March, wherein large investors accumulated 142,773 ETH - Worth approximately $308 million. In parallel, Bitmine acquired 67,111 ETH valued at $145 million.

What’s ahead? - With the Crypto Fear and Greed Index still in the “Extreme Fear” zone, market sentiment can be expected to be cautious for a while now. Downside risks are likely to persist until the conflict reaches a complete resolution.

Is ‘HODL’ dead? 21Shares thinks crypto ETFs have moved on

Key points:

  • Crypto ETFs are shifting strategies from the good old ‘HODL’ strategy to income generation and scaling yield streams.

  • With total AUM and net flow in the negative zone, the crypto ETF market has been showing signs of strain.

News - 21Shares president Duncan Moir highlighted a shift in how crypto ETFs are being managed recently. According to him, these funds are moving away from purely passive strategies towards more active approaches. While “HODL” once defined the core strategy, the focus has now evolved towards scaling yield streams and unlocking additional income opportunities. 

A new launch - His observations came on the back of Moir recently launching an ETP tied to Strategy’s preferred stock, Stretch (STRC), which offers an annual dividend yield of up to 11.5%, paid monthly. 

Moir emphasized that this product is meant for Europe’s mature investor base, who already hold Bitcoin and Ethereum and are now seeking more sophisticated ways to expand their crypto exposure. He noted that the ETP has seen immediate traction across multiple regions, adding,

"Most of the world does not live onchain...that's why ETFs and ETPs really exist."  

Is the market under pressure? - In parallel, staking rewards are emerging as another key active strategy within crypto ETFs - Aimed at enhancing investor returns. Asset managers like Grayscale and BlackRock are actively pushing to incorporate staking into their respective Spot Ethereum ETFs.

And yet, despite such innovations, the broader ETF market is going through a period of consolidation. While the U.S leads with $638 million in recent inflows, followed by Germany and Switzerland, the total assets under management (AUM) have seen a significant pullback from their 2025 peak. At the same time, the total net flows also stand at -$1.80 million - Reflecting a cautious investor position.

Coinbase tells U.S Senate it can’t back the latest stablecoin yield deal

Key points:

  • Coinbase withdrew its support from the latest compromise reached on stablecoin yields for the passage of the CLARITY Act.

  • Key officials remain optimistic as investors reposition ahead of the Digital Asset Market Clarity Act.

News - Amidst the ongoing chatter around the CLARITY Act’s passage, Coinbase has fueled a new layer of friction. Addressing the Senate offices, a representative from Coinbase said that they have backed off from supporting the last compromise regarding stablecoin yield.

Optimism NOT on the wane - With multiple meetings in March and rising Polymarket odds for the passage of the Act, even key Senators were hopeful. This was noted by Senator Cynthia Lummis recently as she said,

“America’s financial future is at stake now— we can’t wait until 2030 for another chance.”

However, with such a major step back from Coinbase, the crypto market stands in limbo. For his part, Patrick Witt, Executive Director of the President's Council of Advisers on Digital Assets, is still hopeful. According to the exec, 

“Plenty of uninformed FUD circulating on social media this week. It’s all going to work out. Bullish.” 

CLARITY Act blues - Needless to say, investors are now strategizing their positions. As the upcoming CLARITY Act would potentially remove yield opportunities from stablecoins like USDC, investors are turning towards staking Ethereum.

Such a shift becomes particularly impactful given the limited liquid supply of ETH, with only around 3.46 million ETH available on exchanges. If even a small portion of capital flows from stablecoins into ETH or staked ETH, it could quickly tighten supply on exchanges, pushing ETH’s price higher.

Morgan Stanley sees tokenization as the next step in securities trading

Key points:

  • Joining the race of tokenization, Morgan Stanley plans to roll out tokenized securities trading by year-end.

  • Meanwhile, tokenized assets have surged by 245% year-over-year, hitting new highs.

News - Tokenization has now become a key player in the traditional finance space. Investment banks, including Morgan Stanley, are also moving in this direction, with crypto head Amy Oldenburg confirming plans to enable tokenized securities trading on its Trajectory Cross platform in H2 2026.

“One of the things we’re planning for the second half of 2026 is turning our Trajectory Cross, our dark pool, to support tokenized securities later this year.”

Morgan Stanley’s crypto moves - The bank was among the first to let advisors offer Spot Bitcoin and Ethereum ETFs widely, including for retirement accounts, and has integrated crypto into its E*TRADE platform.

In fact, Eric Balchunas recently highlighted that a Morgan Stanley Bitcoin ETF (MSBT) received an official listing announcement from the NYSE. Now, it is shifting towards tokenization as the next phase of market evolution. 

Besides Morgan Stanley, exchanges like the New York Stock Exchange (NYSE) and Nasdaq are also partnering with tech firms to build systems for tokenized securities. 

Market dynamics - The tokenized asset market has reached approximately $1 billion in value, with transfer volumes increasing by 45% month-over-month to $2.5 billion.

In fact, data from Grayscale further highlighted this trend, noting a 245% year-over-year hike in tokenized assets, alongside a 35% rise in stablecoin supply. 

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Interesting facts

  1. Bitcoin has accounted for more lifetime trading hours than the S&P 500, despite coming live in 2009, as opposed to the latter which has existed for 55 years now. This is because of their respective trading patterns - Bitcoin trades 24/7, whereas the S&P 500 trades only about 6.5 hours per weekday.

  2. As of 2026, Bitcoin is considered less volatile compared to the Magnificent 7 stocks. Last recorded in 2025, Bitcoin’s historical volatility (HV) dropped to 42%, which is half of where it was in 2021. However, sharp and extended declines still exist.

  3. Back in 2010, a website called the “Bitcoin Faucet” gave away 5 BTC to anyone who solved a simple captcha. Created by Gavin Andresen, it was meant to introduce people to Bitcoin at a time when it was of almost no value.

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Top 3 coins of the day

TRON (TRX)

Key points:

  • TRX saw a hike of over 10% in the past month and over 2% in the past week.

  • Altcoin stood in the healthy bullish zone with technical indicators confirming the bullish trends.

What you should know:

TRX, the native token of the TRON network, was trading at $0.3110, up 0.57% over the past 24 hours at press time. Its charts reflected a mild bullish bias in the market. This sentiment was supported by technical indicators, with the RSI hovering above the neutral level at around 63.

Further reinforcing this trend, the MACD line stood above the Signal line, accompanied by a green histogram - A sign that bullish momentum was still intact. However, the $0.3221-level stands out as a key resistance zone. A breakout above this level could push TRX into overbought territory, increasing the chances of a short-term pullback.

Thus, for the bullish momentum to sustain itself, TRX needs to consolidate within the $0.31–$0.32 range. Holding this zone would provide a stable base, while failure to maintain it could invite renewed selling pressure.

OFFICIAL TRUMP (TRUMP)

Key points:

  • TRUMP was changing hands at $3.12 after its 9% drop over the past week.

  • While CMF confirmed the bearish trend, Bollinger Bands hinted at signs of hope for the buyers.

What you should know:

The TRUMP token was trading at $3.12 at press time, marking a sharp 6.39% decline over the past 24 hours. The Chaikin Money Flow (CMF), standing at -0.13, further reinforced the bearish trend.

From a technical perspective, the token remains under pressure unless it can reclaim key resistance levels. For a meaningful bullish reversal, TRUMP would need to break above the $4.125 resistance zone. The latter has so far acted as a major barrier to upward momentum. Until then, price action is likely to remain constrained.

Additionally, the widening Bollinger Bands signaled greater volatility, meaning the token is seeing sharp price swings. While this alluded to uncertainty, it also indicated that a potential shift in trend could occur once the bands begin to contract. This, in turn, would provide a clearer move ahead.

MemeCore (M)

Key points:

  • M, the native token of MemeCore, marked double-digit gains in 24 hours. 

  • Technical indicators confirmed the trend, but the price closing near the resistance level raises questions.

What you should know:

MemeCore was trading at $2.26 after surging by over 31% in the last 24 hours, even as the broader crypto market remained bearish. The chart showed a strong upward move, with the price breaking past previous levels and nearing a key resistance zone.

After such a sharp rally, a slight pullback is expected, especially as the token entered the overbought zone.

The rising Moving Averages pointed to a sustained bullish trend, while the growing green bars in the Awesome Oscillator confirmed strong buying momentum. However, with the price close to resistance, the next move will depend on whether it can break above this level or face rejection and pull back.

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