Top ETFs of 2024 Face Steep First-Quarter Reversal
Crypto and Tesla-focused funds that soared last year slump in 2025 amid political and market volatility.
Bitcoin ETFs and other top performers from 2024 have experienced dramatic declines in the first quarter of 2025, according to etf.com fund performance data, highlighting the risks of chasing the prior year's winners.
Among the 10 best-performing, non-leveraged ETFs in 2024, cryptocurrency-themed funds dominated the list, with returns ranging from 109% to 213%. However, these same stellar performers faced headwinds in 2025's first quarter.
Investors who bought into these top-performing funds at the end of 2024 would have experienced losses in just three months, with declines ranging from 11% to over 32%, underscoring the perils of chasing performance and the volatile nature of thematic investments.
Crypto Retreat Drags Down Bitcoin ETFs
Bitcoin ended the first quarter of 2025 down about 11.7% from the year's start, marking its weakest first-quarter performance since 2018. Ethereum fared even worse, with its price plummeting approximately 45% in the quarter, creating a challenging environment for cryptocurrency investors.
The Grayscale Bitcoin Trust ETF (GBTC), which returned 158% in 2024, dropped more than 11% over the past three months. Similarly, the Hashdex Bitcoin Futures ETF (DEFI), which gained 140% last year, fell 11.4% during the same period.
The Simplify Bitcoin Strategy Plus Income ETF (MAXI), which returned 138% in 2024, experienced a steeper decline, falling 18.3% over the past three months. The ProShares Bitcoin Strategy ETF (BITO), which returned 136% in 2024, lost 12.3% in the recently ended quarter.
The Bitwise Bitcoin Strategy Optimum Roll ETF (BITC), which gained 118% in 2024, declined 12.7% in the first quarter, while the ProShares Bitcoin and Ether Market Cap Weight Strategy ETF (BETH), which returned 114% last year, dropped 18.1%.
One fund, the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC), which gained 119% in 2024, has closed entirely.
Political Fallout Hits Tesla and Tech ETFs
Political tensions from the Trump administration's Department of Government Efficiency (DOGE) initiatives and waning support shown in special elections in Florida and Wisconsin have created additional market pressures.
The First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT), which returned 122% in 2024, suffered a nearly 23% decline over the past month.
But the most dramatic reversal came from the Simplify Volt RoboCar Distribution and Tech ETF (VCAR)—now renamed to Simplify Volt TSLA Revolution ETF (TESL)—which after leading 2024's performance charts with a 213% gain, plummeted 32.2% in the first quarter of 2025.
Elon Musk's dual roles as DOGE leader and advisor to President Donald Trump drew criticism and protests targeting Tesla Inc. (TSLA), contributing to a 13% drop in Tesla's global vehicle deliveries in Q1 2025—the company's weakest performance in nearly three years.
Even the YieldMax NVDA Option Income Strategy ETF (NVDY), which returned 109% in 2024, fell 18.9% during the first quarter.
Source: etf.com
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