The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

There’s a new way for ASX investors to gain exposure to Bitcoin and other cryptos…

| More on:
An Australian flag flies next to a flag showing Bitcoin.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It’s official.

The BetaShares Crypto Innovators ETF (ASX: CRYP) launched on the ASX this morning.

ASX investors now have the means to gain exposure to a basket of up to 50 assets (currently 32) closely linked to a range of cryptos, such as Bitcoin (CRYTPO: BTC) and Ethereum (CRYPTO: ETH).

Investors can buy and sell shares in the exchange-traded fund (ETF) just as they would any other ASX listed shares.

Take note, though, that the ETF doesn’t invest directly in Bitcoin, or any altcoin for that matter.

Exposure to the crypto economy

Instead, as the BetaShares website explains, the first ASX crypto ETF “aims to track the performance of an index (before fees and expenses) that provides exposure to global companies at the forefront of the dynamic crypto economy”.

Those fees are listed as 0.67% per year, with the caveat that “certain additional costs apply”.

As of this morning, the crypto ETF’s top holdings are Silvergate Capital Corp (12.3%), Marathon Digital Holdings Inc (11.8%), Galaxy Digital Holdings Ltd (11.1%), and Coinbase Global Inc (9.8%).

BetaShares points out that “CRYP should be considered very high risk”.

Indeed, as cryptocurrency prices remain highly volatile, investors should be prepared for some potentially large price swings for CRYP and any future ASX crypto ETFs.

The path to crypto ETF ASX listing

Last Friday, the Australian Securities and Investments Commission (ASIC) released its guidance on cryptocurrency-related investment products.

As my Foolish colleague Tony Yoo noted yesterday: “BetaShares chief Alex Vynokur welcomed the nod from the corporate watchdog for Australians seeking cryptocurrency exposure but afraid of trading on ‘unregulated exchanges’.”

Last week Vynokur told Business Insider Australia:

We know that there are millions, millions of people around the world [invested in crypto], and close to 2 million Australians that have actually invested in cryptocurrency directly.

But we also know for every person that invests directly in cryptocurrency, there is also a person that wants to have a diversified exposure to the company’s really thriving ecosystem.

While other crypto ETFs could now follow CRYP’s virtual footsteps to list on the ASX, being the first mover can have its advantages. This was witnessed with the launch of the first US-listed futures-based Bitcoin ETF (BITO), which commenced trading last month with huge investor interest.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

A hand reaching into a computer to grab digital money, indicating a rise in the use of cryptocurrency

Why an RBA-issued crypto-like currency could soon be a reality

The RBA is piloting a central bank-baked digital currency.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin.

Can the Bitcoin price reach US$30,000 again in 2022?

Rising interest rates have resulted in significantly less institutional investor interest in cryptos.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Could this key metric signal more bad news for the Bitcoin price?

Crypto investors are keeping a close eye on the signals that could see the US Federal Reserve begin to ease…

Read more »

Man sitting at a desk facing his computer screen and holding a coin representing discussion by the RBA Governor about cryptocurrency and digital tokens

Is it smart to use dollar cost averaging to buy Bitcoin?

Should investors consider a DCA strategy for cryptocurrencies like Bitcoin?

Read more »

A hip young guy works at his home workstation with two screens and a gamers chair, keeping an eye on his crypto investments.
Share Market News

Bitcoin price dips in August after soaring 22% in July. What’s going on?

The greater presence of institutional investors in crypto markets looks to be adding to the correlation between cryptos and other…

Read more »

A very sad beagle cross dog lays dejectedly on a sofa with his short legs stretched out in front of him in a pose of flat defeat as he stares sadly at the camera.

Expert panel slashes 2022 outlook for Dogecoin price. Here’s why

Originally created as a joke, Dogecoin still has a market value of nearly US$9 billion despite crashing 91% from last…

Read more »

an image of a gold bitcoin and a gold ethereum coin side by side against a backdrop of a graph with reda and green bars representing rising and falling prices.

Bitcoin price dips. Is Ethereum on track to dethrone the top crypto?

Bitcoin is up 22% since 1 July while Ethereum has leapt 56% higher.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.

Why El Salvador is doubling down on Bitcoin despite the 2022 price crash

El Salvador still intends to issue a US$1 billion Bitcoin-backed bond, once market conditions improve.

Read more »