Why Crypto Stocks Are Outperforming Bitcoin Again

Actionable Market Insights

Author

10x Research
June 08, 2025

Why This Report Matters

Crypto equities are breaking away from Bitcoin’s flat performance, and the market is starting to notice. With $300 billion now parked in listed crypto stocks, institutional capital is clearly making a directional bet. Circle’s explosive IPO, Robinhood’s crypto revenue surge, and Coinbase’s underappreciated stake in USDC all point to a structural shift. Retail investors, priced out of Bitcoin, are chasing exposure through cheaper proxy stocks. Regulatory clarity in both the U.S. and Hong Kong adds momentum to the trend.

One week return (%)

Main Argument

The combined market value of publicly listed crypto companies has now surpassed $300 billion, signaling renewed investor interest, even as Bitcoin’s performance remained flat over the past week. Crypto equities have notably outperformed, with demand rising despite miners lagging due to increased network hashrate and difficulty, which signal intensified competition. Investors may now look to identify undervalued plays in the space; while Circle appears richly valued, its IPO success reflects strong appetite fueled by growing regulatory clarity.

Bitcoin has outperformed our mining index

With Bitcoin’s correlation to the S&P 500 near the lower band and volatility relatively muted, there's a compelling case for equity investors to gain crypto exposure through stocks. A simple regression suggests Coinbase shares are currently trading 18% below fair value, potentially justified by its strategic equity stake in Circle. Robinhood remains in a strong uptrend, and Galaxy Digital may also be undervalued; in both cases, diversified crypto firms appear more attractive than pure-play miners.

Bitcoin’s 30-day volatility and correlation with S&P500 is relatively low

Market Updates

Become a paying subscriber of Market Updates to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

Most comprehensive, unbiased digital asset research for traders and institutions:

  • • Receive 2-4 concise, informative Market Updates reports per week.
  • • We cover everything that impacts the price of Bitcoin and other major cryptos, from on-chain data to macro and market structure (funding rates, money flows, etc.). Our insights are trusted by some of the largest hedge funds and traders in the industry.
  • • You'll gain full access to our in-depth 'Market Update' analysis, informed by our experience at leading investment banks like Goldman Sachs, Morgan Stanley, and JP Morgan, as well as managing hedge fund capital at Millennium.
  • • We rigorously backtest our insights and are unafraid to call bullish or bearish market conditions. Our research is unique and grounded in solid financial analysis, offering perspectives you won't find anywhere else.
  • • --------------
  • • Our clients include hedge funds, traders, liquidity providers, exchanges, family offices, proprietary traders, institutions, high-net-worth individuals (HNWIs), CEOs of major listed Bitcoin mining companies, executives from crypto service providers, TradeFi portfolio managers, etc.