Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today

This new ASX listed crypto ETF is having a very good day…

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a bearded man sits at his desk with hands behind his head and feet on his desk smiling widely while looking at his computer screen which has market data on it, indicating a please share price rise.

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The S&P/ASX 200 Index (ASX: XJO) is having a rather wild day of trading so far this Tuesday. After initially exploring both negative and positive territory this morning, the ASX 200 has now turned positive again and, at the time of writing, is up by 0.02% at 7,453 points. But that’s nothing compared to one ASX exchange-traded fund (ETF). That would be the BetaShares Crypto Innovators ETF (ASX: CRYP).

The BetaShares Crypto Innovators ETF has only been on the ASX boards since last week when it floated on the morning of 4 November. But it soon was the talk of the ASX town, breaking the record for trading volumes for a new managed investment within hours of its listing.

And it might well be the talk of the town again today. The Crypto Innovators ETF is currently up a sizeable 7.12% so far this Tuesday at $12.34 a unit at the time of writing.

So what’s behind this huge leap upwards in valuation for this new ASX ETF?

Well, there’s little doubt the news that the global cryptocurrency market has just hit US$3 trillion for the first time ever overnight is helping. This follows the flagship cryptocurrency Bitcoin (CRYPTO: BTC) hitting a new all-time high overnight as well.

CRYP ETF’s major holdings shoot the lights out

But let’s also check out what’s been happening with CRYP’s major underlying holdings. As an ETF, CRYP invests in a basket of underlying shares. In this ETF’s case, these shares are selected to provide “exposure to global companies at the forefront of the dynamic crypto economy”.

So, according to the provider, CRYP’s current top 5 holdings are as follows:

  1. Galaxy Digital Holdings Ltd
  2. Silvergate Capital Corp
  3. Marathon Digital Holdings Inc
  4. Coinbase Global Inc
  5. Microstrategy Inc

All 5 companies are US shares (except for the Canadian Galaxy Digital) so let’s see how they performed in last night’s trading (our time).

Galaxy Digital shares were up 6.16% to C$42.22.

Silvergate saw a 0.94% gain to US$217.18 a share.

Marathon Digital shares were up a whopping 17.99% to US$75.30.

Coinbase put on a robust 5.01% to US$353.92 a share.

And Microstrategy was up 7.84% to US$860 a share.

So, as you can see, these top 5 holdings in CRYP had an extremely successful night of trading overnight. This would also be feeding into sentiment for this ETF today.

The BetaShares Crypto Innovators ETF charges a management fee of 0.67% per annum.

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

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Motley Fool contributor Sebastian Bowen owns shares of Bitcoin and Coinbase Global, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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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