Crypto-themed exchange-traded funds have extended their upward momentum, with trading activity showing notable gains across the sector. As of the latest update, Southern 2x Long MSTR (07799) rose 8.15% to HKD 5.705, while Southern 2x Long Coinbase (07711) climbed 6.35% to HKD 29.46.

On the news front, JPMorgan recently issued a macroeconomic assessment indicating that if market hedging operations weaken, Bitcoin's relative performance could surpass that of gold. The bank noted that gold ETFs have fully recovered from the outflows that emerged in 2026, whereas Bitcoin ETFs have only regained approximately half of their losses.

The momentum behind the "devaluation trade," which had driven inflows into both asset classes following the Federal Reserve's July meeting, has faded over the past week. This shift is attributed to rising inflation-adjusted bond yields and the failure of the Clarity Act to pass in the U.S. Senate.

Regarding the setback from the vote on the Digital Asset Market Clarity Act, Bitwise's Chief Investment Officer Hougan believes that the legislative failure does not necessarily lead to a deterioration in the regulatory environment. He pointed out that the SEC and CFTC can still rely on existing authority to establish rules in the near term, and this uncertainty has actually spurred a reassessment of market self-regulatory capabilities.

Industry insiders have also noted that despite earlier widespread concerns over regulatory uncertainty, the strong price rebound combined with institutional positioning around a cyclical turning point signals a fundamental shift in market sentiment. The interplay between capital flows and policy expectations is now reshaping the current asset pricing logic.