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Two Crypto ETFs Performed Worst in Australia in 2022

Delbert Williams IIBy No Comments3 Mins Read

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Crypto-related exchange-traded funds (ETFs) took the top two worst-performing ETFs of the year in Australia, and the same story is playing out in the US.

BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) are offering investors negative year-to-date (YTD) returns of 82% and 72%, respectively, through December 30.

BetaShares launched an ETF on the Australian Securities Exchange (ASX) in October 2021. It was just a few weeks before hitting all-time highs that most cryptocurrencies have yet to recover from.

At the time of writing, CRYP was slightly above 81.8% of YTD.Image: Google finance

CRYP provides exposure to listed blockchain and crypto companies such as Coinbase exchange and mining company Riot Blockchain. His current largest holding at 12.3% of the portfolio is Mike Novogratz’ investment firm Galaxy Digital.

Cosmos’ DIGA ETF tracked the performance of a portfolio of companies focused on mining Bitcoin (BTC) or other cryptocurrencies through the Global Digital Miners Index.

DIGA will likewise be listed on the Cboe Australia exchange in October 2021.

After just one year, with interest in cryptocurrencies waning and the fund’s net asset value falling below $1 million, Cosmos will close the ETF in October 2022 along with two other ETFs tracking BTC and Ethereum (ETH). Requested delisting from Cboe.

According to data from ETF.com, the top four worst-performing ETFs are crypto-related, and US-based ETFs show a similar pattern. However, this does not include inverse and leveraged funds.

The worst performer was the Viridi Bitcoin Miners ETF (RIGZ), which aims to provide exposure to publicly traded cryptocurrency miners such as Riot and CleanSpark. Year-to-date the investor was able to get him a negative return of 87%.

RIGZ is down over 87% over the year.Image: Google finance

VanEck Digital Transformation ETF (DAPP), Bitwise Crypto Industry Innovators ETF (BITQ) and First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) are closely followed, all of which have entered the crypto industry through their holdings of crypto companies like Jack Dorsey. tracked. Block Inc. Coinbase, Riot, Galaxy, etc.

DAPP and BITQ gave investors negative year-to-date returns of nearly 86% and 84.5% respectively, while CRPT fell nearly 81.5% over the same period.

Related: What to expect from cryptocurrencies in the year after FTX

But this year’s losses aren’t just limited to the crypto industry. Over the past year, U.S. bonds, stocks and even real estate have recorded their worst year in decades and possibly even centuries.

Traditional portfolios of 60/40 equities and 40 bonds are performing their worst since the height of the Great Depression in 1932.

MAMAA stock, the collective name for big tech companies Meta, Apple, Microsoft, Amazon and Alphabet (Google), has lost up to 70% of its stock in a year. Meanwhile, the cryptocurrency market capitalization has decreased by about 64.5% over the year.