The Betashares Crypto Innovators ETF has dumped 23% in a month. Is it now a bargain?

This ASX crypto-based ETF has had a volatile start to ASX life…

| More on:
a man wearing spectacles has a satisfied look on his face as he appears within a graphic image of graphs, computer code and technology related symbols while he concentrates on a computer screen

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

  • When it launched last year, the CRYP ETF broke ASX trading records
  • But things have been bleak for this ETF ever since
  • But two ASX investing experts rate the BetaShares Crypto Innovators ETF as a buy

When the BetaShares Crypto Innovators ETF (ASX: CRYP) launched on the ASX last year, it caused quite the stir. This exchange-traded fund (ETF) took only eight minutes on the ASX to surpass $8 million worth of trades. By the end of its first day, investors had exchanged $39.7 million worth of the ETF's units, smashing an ASX record.

This ETF from provider BetaShares doesn't invest in cryptocurrencies like Bitcoin (CRYPTO: BTC) directly. Instead, it invests in companies that provide "'picks and shovels' exposure to the companies building crypto mining equipment, crypto trading venues, and other key services that allow the crypto economy to thrive".

Some of its current top holdings include Silvergate Capital Corp, Microstrategy Inc, and Coinbase Global Inc.

But unfortunately for the BetaShares Crypto Innovators ETF's early investors, there hasn't been much in the way of good news since its launch. On its first day of ASX life, CRYP closed at $11.28 per unit. But as it stands at end of trading on Tuesday, this ETF is asking just $4.89. That's a fall of almost 57%.

Of that fall, 23.35% has come during the past month alone. But now that we have seen such savage falls, many investors might be wondering if this ETF is in the bargain bin.

Is the BetaShares Crypto ETF a buy or a sell today?

Well, let's check out what two ASX expert investors reckon. Felicity Thomas from Shaw and Partners and Ben Nash from Pivot Wealth both joined a Livewire podcast recently where they shared their views on this ASX ETF.

Here's some of what Nash had to say:

This one's a buy from me. I think crypto is a really interesting space, the blockchain technology has so many applications that I think we're only just starting to see that. I think it will just grow and continue to grow. Also, the house always wins, so a lot of the companies that this particular ETF is investing in, they're companies that are not necessarily tied to the price or value of cryptocurrency or other digital assets but instead that make money when they're more and more popular. So I think that it's a huge growth area.

So that's pretty unequivocal there. Fortunately, Thomas agreed that CRYP units were a buy. Here's some of what she added:

It's another buy from me. It's off 45% from its original initiation price. I really like what Ben said, in that it's the picks and shovels of cryptocurrency in different companies, rather than direct cryptocurrency. You make money on the buyers and sales. So with ANZ and NAB and all the majors getting into cryptocurrency, I think it's here to stay.

So that's how these two ASX experts view CRYP right now. Although this ETF's first few months of life haven't been easy, who knows what the future of cryptocurrency might bring to the companies that enable this technology.

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

Motley Fool contributor Sebastian Bowen owns Bitcoin and Coinbase Global, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Bitcoin, and Coinbase Global, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended MicroStrategy and Silvergate Capital Corporation. 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 ETFs

The letters ETF with a man pointing at it.

Invest $10,000 into these ASX ETFs next week

These ETFs provide investors with access to some high quality companeis.

Read more »

Businessman at the beach building a wall around his sandcastle, signifying protecting his business.

Is the Vaneck Morningstar Wide Moat ETF (MOAT) a good long-term investment?

Is this ASX ETF a top pick to hold for years to come?

Read more »

ETF with different images around it on top of a tablet.

4 quality ASX ETFs to buy after the market sell-off

Here's why these funds could be buys after recent market volatility.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.

Own Vanguard Australian Shares Index ETF (VAS) units? It's payday for you!

Find out what distribution VAS ETF is sending to bank accounts today.

Read more »

A young office worker is surrounded by peers who are clapping and congratulating her.

3 reasons I think this fantastic ASX ETF is a top buy

Quality is just one factor that makes this ETF is a great pick, in my opinion.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.

4 ASX ETFs for growth investors to buy this month

These ETFs give investors easy access to large group of growth shares.

Read more »

A young woman with glasses holds a pencil to her lips as she is surrounded by the reflection of data as though she is being photographed through a glass screen project with digital data.

This compelling ASX ETF may be a better way to invest in Aussie stocks than Vanguard Australian Shares Index ETF (VAS)

This ASX ETF could be an even more effective investment than Vanguard’s.

Read more »

Man smiling at a laptop because of a rising share price.

How does direct indexing compare to buying ASX ETFs

Do you like index investing, but want more say in which stocks you pick?

Read more »