Why is the BetaShares Crypto Innovators ETF (ASX:CRYP) leaping 5% today?

We look at how cryptocurrencies like Bitcoin might be lifting this ETF today.

| More on:
Young male investor smiling looking at laptop as the share price of ASX ETF CRYP goes higher today

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

Key points

  • The ASX 200 is enjoying a strong day today
  • This crypto-based ETF is doing even better
  • Movements in Bitcoin and Ethereum might be having an impact 

This Wednesday’s trading session has been a positive one overall for ASX shares. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up a robust 0.88%. But that’s nothing compared to the BetaShares Crypto Innovators ETF (ASX: CRYP).

CRYP units are presently enjoying a very pleasing 4.82% bounce and are sitting at $6.53 each. So what could be behind this ETF’s very pleasant day so far?

Well, as a start, cryptocurrencies have enjoyed some very good gains recently. Over the past 48 hours, crypto flagbearer Bitcoin (CRYPTO: BTC) has appreciated by roughly 5.5%. The second-largest cryptocurrency Ethereum (CRYPTO: ETH) has rocketed more than 10% over the same period.

So this has obviously provided a strong foundation for a crypto-based ETF like BetaShares Crypto Innovators.

But let’s take a look at how the CRYP ETF’s underlying holdings have been performing this week as well. After all, an ETF is only worth the sum of its parts, whatever they may be.

CRYP ETF surges after rally in Bitcoin, cryptocurrencies

So the BetaShares Crypto Innovators ETF’s top holding is currently Coinbase Global Inc (NASDAQ: COIN), with a hefty 10.6% weighting in the fund. Its next largest holding is Silvergate Capital Corp (NYSE: SI) at 10.4%, followed by Microstrategy Incorporated (NASDAQ: MSTR) at 9.3%.

Last night (our time), Coinbase shares surged more than 7% on the US markets, possibly in response to the movements of cryptocurrencies like Bitcoin and Ethereum that we discussed earlier. Silvergate Capital did even better, rising by 10.06%. And Microstrategy shares enjoyed a 6.8% pop.

So this extraordinary strength across most of CRYP’s underlying portfolio is probably behind the big valuation jump today.

But even so, investors in this ASX ETF have still struggled of late. CRYP units remain down by more than 16% in 2022 so far, and by more than 40% since this ETF was listed on the ASX back in November last year.

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

Motley Fool contributor Sebastian Bowen owns Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

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 »

a mysterious person wearing a black hoodie points a finger to a vast illuminated graph tracking bitcoin value with bitcoin symbols floating above the chart.

The Bitcoin price is leaping 10% higher today. What’s going on?

Only a single one of the top 100 cryptos by market cap has lost value since this time yesterday.

Read more »

A person sitting at a desk smiling and looking at a computer.

The Ethereum price just shot up 12%. Here’s why

Investor risk appetite was spurred by Fed chair Jerome Powell’s comments that the rate of future interest rate increases may…

Read more »

a woman wearing dark clothing and sporting a few tatoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Share Market News

Bitcoin or Cardano: which crypto is most widely held among Aussies in 2022?

The number of users on e-Toro’s platform holding Bitcoin increased 9% globally and 16% in Australia in 2022.

Read more »