Titan Crypto Q3 Rebalancing

Ethereum: Structural demand takes center stage

Ethereum was the standout performer of the quarter as ETF inflows exceeded new ETH issuance nearly tenfold, creating a pronounced supply squeeze that tightened liquidity and propelled prices higher. At the same time, staking continued to rise as investors sought yield and network participation, further reducing circulating supply.

Institutional adoption added another layer of support. Corporate treasuries and long-term allocators increasingly turned to Ethereum as a strategic reserve asset, drawn by its yield mechanics and central role in powering decentralized finance, stablecoins, and smart contracts. Trading volumes remained robust, reflecting both institutional participation and healthy retail activity. 

Together, we believe these dynamics solidified Ethereum’s position as the utility backbone of the crypto ecosystem, with performance to match.

Bitcoin: Anchoring but lagging

Bitcoin posted a respectable gain of +6.4%, though its advance lagged Ethereum. The asset experienced choppy price action, with drawdowns driven by shifting macro signals, Federal Reserve policy speculation, and heavy positioning earlier in the year. 

Even so, institutional demand remained evident: Bitcoin ETFs drew substantial inflows, and corporate treasuries – particularly major miners – continued to accumulate reserves. These trends reinforced Bitcoin’s enduring role as the digital reserve asset and liquidity anchor for the broader market.

Portfolio Perspective

The quarter underscored the complementary roles of Bitcoin and Ethereum within Titan Crypto. 

Bitcoin continues to provide ballast, offering scale and stability in times of volatility. Ethereum, however, delivered meaningful differentiated upside – its supply dynamics and network utility allowed it to compound returns in ways Bitcoin could not.

With Titan Crypto advancing nearly over 28% in Q3, investors saw firsthand the benefit of balanced exposure: Bitcoin offered resilience, while Ethereum was the driver of alpha. Looking forward, our 50/50 allocation remains designed to capture both – anchoring in Bitcoin’s institutional acceptance while positioning for Ethereum’s ongoing theme of structural growth.

Wondering if you have the right exposure? Schedule a time with our advisor team (here) and we can help. We generally recommend a 1-5% crypto allocation for all clients who are suitable and understand the risks.

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Disclosures: 

1. Performance is net of Titan’s fees. Performance figures provided do not represent actual investment results of any specific client. Actual performance will vary based on individual circumstances, including the specific timing of trade execution, and as such, the specific cost basis of holdings in a client’s account will also vary. Quarterly performance figures represent cumulative returns, compiled from the beginning to the end of the given quarter. Past performance is not indicative of future results.

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Investments with exposure to crypto assets, including Crypto ETFs, are only suitable for investors who are willing to bear the risk of extreme volatility and substantial losses, including the potential for sharp drawdowns as they still carry inherent risk associated with cryptocurrencies. Extreme volatility in the future, including further declines in the trading prices of bitcoin and ether, could have a material adverse effect on the value of the Crypto ETF shares and the shares could lose all or substantially all of their value. Such investments may be negatively impacted by market events, including liquidity issues, bankruptcies, and heightened regulatory scrutiny. You are solely responsible for evaluating the merits and risks before making any investment decisions, including consideration of any information, materials, or third-party content provided.

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