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.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published February 16, 2022 2:22 pm AEDT

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.

Young male investor smiling looking at laptop as the share price of ASX ETF CRYP goes higher today — Image source: Getty Images

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.

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