Retail Traders Schooled on Market Timing as New Crypto Bets Sink

Wall Street’s rush to cash in on the crypto boom by launching exchange-traded funds of all stripes is looking like a case of awkward timing: All 11 ETFs mostly tied to smaller cryptocurrencies that debuted recently are in the red, caught in a broader selloff that’s wiped roughly $600 billion from Bitcoin’s market value since its October peak.

Issuers aiming to wrap speculative digital tokens into accessible, tradable products are now confronting the challenges of a more cautious market. What once looked like a timely play on retail enthusiasm has instead highlighted the risks of launching in a market still ...