How has the ASX-listed Betashares CRYP ETF been performing?

The ETF launched shortly before the world’s top cryptocurrencies hit all-time highs and began to slide.

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Key points

  • The ASX-listed Betashares CRYP ETF broke first day trading records on its 4 November debut
  • The ETF invests in crypto mining and blockchain-related companies
  • CRYP launched just days before Bitcoin and Ethereum hit record highs and began to pull back

It’s been just over seven months since the Betashares Crypto Innovators ETF (ASX: CRYP) began trading on the ASX.

When the exchange traded fund (ETF) opened for trade on 4 November, it broke a number of barriers.

Namely, CRYP was the first ASX-listed ETF that offered investors direct exposure to a range of crypto-related assets.

Second, the ETF also set a new record for the volume of trades on an opening day. $8 million worth of trades went through within the initial 15 minutes of trade, with ASX investor interest seeing CRYP end its first day with record net buys of $39.7 million.

Does the ASX-listed Betashares CRYP ETF invest in Bitcoin?

Unlike a few crypto ETFs that launched on Cboe Australia recently, the ASX-listed CRYP does not invest directly in Bitcoin (CRYPTO: BTC) or any of the range of altcoins.

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

The Betashares website states that CRYP can invest in as many as 50 related assets. It currently holds 34.

The ETF’s top four holdings, at the time of writing, are:

Silvergate Capital Corp (13.8%); Microstrategy Inc (10.1%); Galaxy Digital Holdings Ltd (8.1%); and Coinbase Global Inc (7.3%).

How has the ETF performed?

If you think timing the market is hard when it comes to buying shares, spare a thought to trying to time the entry of the first ASX-listed crypto ETF.

Unfortunately, the 4 November timing for CRYP could scarcely have been worse, with the share price now down 74% since launching.

While not investing directly in cryptocurrencies, the fortunes of the crypto mining and blockchain-related companies the ETF does invest in are closely tied to the rise and fall of digital asset prices.

Just six days after CRYP hit the boards at the ASX, Bitcoin hit all-time highs on 10 November. Good news on the day, but not so much over the past seven months, with Bitcoin down 56% since that peak.

Ethereum (CRYPTO: ETH), the world’s number two token, also hit its own record highs on 16 November. Ethereum is down 63% since then.

Tumbling crypto prices have seen the Silvergate share price tank 61% since 4 November; the Microstrategy share price lose 70%; Galaxy Digital shares drop 81%; and the Coinbase share price slide 80%.

CRYP has remained under pressure, with shares down 25% over the past month.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Betashares Crypto Innovators ETF, Bitcoin, and Ethereum. The Motley Fool Australia has positions in 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 Scott Phillips.

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