The quantum computing hype train has hit turbulence. While most quantum ETFs are on the downhill ride, one ETF is cashing in on the chaos and another is staying resilient.
• RGTI shares are sliding. See the full story here.
After months of speculative frenzy, Rigetti Computing Inc (NASDAQ:RGTI) stock is tumbling back to earth along with fellow quantum player D-Wave Quantum Inc (NYSE:QBTS), closing Monday down 11.63% and 10.71%, respectively. Rigetti’s rally last week was sparked by a report that the U.S. government was considering equity stakes in key quantum firms, then quickly lost steam after officials denied the report.
D-Wave’s slide has been even uglier, with the stock losing nearly half its market cap in two weeks amid disappointing earnings, mounting losses and a controversial warrant redemption.
The bigger quantum story, once pitched as the "next frontier of AI," now looks more like a sobering reminder that not all cutting-edge science makes for near-term profits.
Defiance's Twin Plays: QTUM Holds Steady, RGTZ Roars
Not all ETFs, however, are suffering. The flagship Defiance Quantum ETF (NASDAQ:QTUM) fell 1.02% on Monday even as quantum small-caps cratered. That resilience comes as QTUM stealthily crossed $3 billion in assets under management last week, reflecting sustained investor confidence in its diversified tech exposure.
QTUM’s mix of established players-from NVIDIA Corp (NASDAQ:NVDA) to Microsoft Corp (NASDAQ:MSFT), has helped cushion the blow from speculative quantum names. It’s effectively become the “quantum-lite” way to stay exposed to the theme without burning up in the volatility vortex.
Meanwhile, Defiance Daily Target 2X Short RGTI ETF (NASDAQ:RGTZ), which offers twice the inverse of Rigetti’s daily returns, leaped more than 23% today, in another sharp reminder that quantum’s downturn is spawning a new set of tactical opportunities. RGTZ has been adopted by traders as a short-term hedge against the sector’s meltdown, making it among the day’s outperformers in leveraged thematic ETFs.
From Quantum Dreams to Market Discipline
The split performance between QTUM and RGTZ underlines how investor appetite for quantum exposure has evolved from blind optimism to nuanced positioning. For the time being, quantum computing’s grand promises are intact, but results, not rhetoric, will be required from the market. As the dust settles, the smartest money perhaps isn’t betting on quantum anymore but around it.
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