BetaShares Crypto Innovators ETF (ASX:CRYP) breaks opening day records…now what?

Investor demand saw the exchange-traded fund set records on its first day of trading

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BetaShares CEO, Alex Vynokur rings the bell at the ASX.

Image source: BetaShares Exchange Traded Funds

The BetaShares Crypto Innovators ETF (ASX: CRYP) didn’t disappoint on its first day of trading yesterday.

In fact, it saw a record amount of trades within minutes of the opening bell. And strong investor demand kept that going through the day.

We’ll get to those figures in a tick.

But first…

What does the ASX crypto ETF invest in?

The exchange-traded fund (ETF) is the first to give Aussie investors exposure to a range of crypto-related assets via the ASX.

But BetaShares Crypto Innovators ETF doesn’t invest directly in cryptocurrencies like Bitcoin (CRYTPO: BTC) or Ethereum (CRYPTO: ETH).

Instead, it offers investors exposure to a range of crypto mining and blockchain-related companies.

BetaShares’ website says its crypto ETF will hold up to 50 such assets. Currently it lists 32.

Its top holdings, as of this morning, are:

  • Silvergate Capital Corp (12.3%),
  • Marathon Digital Holdings Inc (12.1%),
  • Galaxy Digital Holdings Ltd (11.6%), and
  • Coinbase Global Inc (10.1%).

As we cautioned yesterday, investing in this crypto ETF isn’t for everyone.

As with the high volatility witnessed with crypto prices, so too can investors expect some big ups and downs among the companies that are closely tied to these cryptos’ performances. BetaShares cautions on its website that, “CRYP should be considered very high risk”.

What records did the ETF set, and what’s next?

Just 15 minutes after trade opened yesterday, the first ASX crypto ETF saw $8 million worth of trades.

That broke the previous record for first-day volume, set by the Hyperion Global Growth Companies (ASX: HYGG) fund in March this year.

The crypto ETF ended the day with net buys of $39.7 million.

BetaShares CEO Alex Vynokur said:

Investor demand for exposure to the digital assets theme is considerable as evidenced by the record investor interest in the BetaShares Crypto Innovators ETF. Following the successful launch of CRYP, we are looking forward to building out a range of ETFs providing Australian investors a broad range of exposures to the digital assets ecosystem, including the expected launch of the 1BTC and 1ETH ETFs, which will provide access to the performance of the spot prices of Bitcoin and Ethereum.

While ASX investors will need to wait a while yet for a Bitcoin or Ethereum ETF, clearly there’s plenty of appetite for the newly launched fund.

Should you invest $1,000 in CRYP right now?

Before you consider CRYP, you'll want to hear this.

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*Returns as of January 13th 2022

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.

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