Australian Market Saw Worst ETF Performance from Crypto-Related Funds in 2022

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Despite considerable economic headwinds, ETFs shadowing crypto companies have witnessed steep declines this year.

Cryptocurrency-related ETFs took the top two slots for worst-performing funds in Australia and the United States. Unsurprisingly, a similar story is playing out all around the world.

Australian investors have been battered this year, with the BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) posting a year-to-date loss of nearly 82% and 72%, as of December 30.

Just weeks before the height of cryptocurrency valuations, BetaShares initiated its ETF on the Australian Securities Exchange (ASX) in October 2021 – a public offering that has yet to reach those same highs since.

CRYP offers investors an opportunity to gain access to the well-known and highly regarded blockchain, crypto, and mining companies like Coinbase and Riot Blockchain. Galaxy Digital–the investment firm owned by Mike Novogratz–is currently the fund’s largest holding at 12.3% of its portfolio.

Using Cosmos’ DIGA ETF, investors can measure the performance of a portfolio made up of companies that mine Bitcoin BTC$16,703 and other digital currencies on one easy-to-use index.

“It’s been a difficult year for investors as the cryptocurrency market has experienced a bearish trend,” said Jack Lough, head of research and development at BetaShares. “At the beginning of 2021, CRYP was launched with much anticipation given the investment potential associated with blockchain technology and digital currencies.”

DIGA, unfortunately, is listed at an inopportune time of October 2021 on the Cboe Australia exchange.

U.S.-based ETFs have followed a similar pattern, with the four most underperforming ETFs being crypto-related funds as per data from ETF.com – this excludes leveraged and inverse assets.

The Viridi Bitcoin Miners ETF (RIGZ) struggled significantly this year and, unfortunately, offered investors a staggering -87% return YTD. This ETF seeks to grant exposure to publicly listed crypto miners such as Riot Blockchain and CleanSpark, yet they have failed in their objective through the worst possible performance.

Subsequently, VanEck’s Digital Transformation ETF (DAPP), the Bitwise Crypto Industry Innovators ETF (BITQ), and First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) followed suit. They monitor the crypto industry by investing in companies like Block Inc., led by Jack Dorsey, Coinbase, Riot Blockchain Technologies, and Galaxy Digital Holdings Ltd., among others.

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