Crypto ETFs Take Top Two Spots for Worst-Performing Funds in Australia
31. Dezember 2022
• Two crypto-related ETFs were the worst-performing ETFs in Australia for the year, with BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) providing investors Down Under with respective negative returns of nearly 82% and 72% year-to-date.
• These ETFs track publicly listed blockchain and crypto companies, such as Coinbase and Riot Blockchain, and provide exposure to Bitcoin (BTC) and Ether (ETH) mining companies.
• Due to declining interest in crypto, the net asset value of these ETFs dipped below $1 million, leading to their delisting from Cboe Australia.
The Australian Securities Exchange (ASX) saw two crypto-related exchange-traded funds (ETFs) take the two top spots for the worst-performing ETFs in the country for the year of 2022. BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) have both provided investors Down Under with negative returns of nearly 82% and 72% respectively year-to-date (YTD) through December 30.
BetaShares launched its ETF on the ASX in October 2021, just weeks before the majority of cryptocurrencies hit all-time highs that they have yet to regain. CRYP gives investors exposure to publicly listed blockchain and crypto companies, such as Coinbase and Riot Blockchain, among others. The largest current holding within its portfolio is Mike Novogratz’s investment firm Galaxy Digital, making up 12.3% of the fund.
DIGA was similarly listed at a poor time in October 2021 on the Cboe Australia exchange, and tracks the performance of a portfolio of companies focused on mining Bitcoin (BTC) or other cryptocurrencies through the Global Digital Miners Index. However, due to declining interest in crypto, the net asset value of these ETFs dipped below $1 million, leading to their delisting from Cboe Australia.
This same pattern has been seen in the United States, with the top four worst-performing ETFs all being related to cryptocurrencies. This includes both Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE), which have seen losses of approximately 57% and 46% YTD.
The poor performance of these ETFs is due to the major macroeconomic headwinds the crypto industry has been facing over the year, which has seen significant drawdowns. While it remains to be seen how the crypto market will fare in the future, investors should be aware of the risks they may face when investing in crypto-related ETFs.