Fineqia International Inc (CSE:FNQ) earlier this week discussed the findings of its latest Crypto ETP Report, with Senior Associate Matteo Greco outlining a growing divergence between cryptocurrency markets and traditional financial markets while highlighting several catalysts that could shape investor sentiment during the remainder of 2026.
Speaking with Proactive, Greco said major equity benchmarks including the S&P 500 and Nasdaq have continued to reach record highs despite weaker performance across much of the cryptocurrency sector.
Proactive: I was interested to read your May Crypto ETP Report. Let’s talk about what you’re seeing in the markets. Starting with the broader financial markets and crypto, what are you seeing?
Matteo Greco: Generally speaking, over the past few months we’ve seen very different behaviour between the crypto market and traditional financial markets. While crypto is usually more volatile, the surprising aspect has been the magnitude of the divergence. The S&P 500, Nasdaq and many traditional finance indices have reached new all-time highs, while the crypto market has experienced mostly negative price action since Q4. That’s different from what we’ve become accustomed to over the last two or three years, especially following the approval of US spot ETFs that brought more institutional participation into crypto. It’s a trend I’m continuing to monitor closely.
Are there specific factors that help explain this divergence?
A large part of the stock market’s strength appears to be linked to AI. While the indices are making new highs, only a relatively small group of companies is driving those gains. Many other stocks are also moving lower. The AI subsector is breaking some of the historical correlations between markets. It will be important to see what happens if that segment cools down and how that impacts broader equity indices.
Your April report showed strong gains, while May was more subdued. What are you seeing month to month?
April was positive, especially after a weaker first quarter. May was more neutral. Bitcoin ETP performance closely mirrored Bitcoin’s price decline, with limited inflows and outflows. Ethereum showed weaker performance both in terms of price and fund flows. Ethereum ETPs attracted substantial flows during 2025, but 2026 has been weaker. On the other hand, the altcoin sector performed relatively well during the past couple of months, particularly in May. We saw signs of a small alt season, which is somewhat unusual given the broader market environment.
