It's been a solid month for ASX shares and, by extension, ASX exchange-traded funds (ETFs) that track the Australian markets. Since late October, the S&P/ASX 200 Index (ASX: XJO) has gained a healthy 2.23% and hit a few new all-time highs.
But one ASX ETF has done much better than that. In fact, this particular ETF has given its investors an eye-watering gain of almost 30% since 28 October.
That ASX ETF is none other than the BetaShares Crypto Innovators ETF (ASX: CRYP).
Yep, CRYP units were going for just $5.81 each this time last month. But as of today's trading (at the time of writing anyway), those units will set you back $7.54 each. That's a gain of 29.8% over just the past four weeks.
So, how has this ASX ETF pulled off such a monumental performance? And more importantly, is the Betashares Crypto Innovators ETF still a buy after these huge gains?
How has this ASX ETF rocketed 30% in one month?
Well, to address the first question, let's look at how this ASX ETF is actually constructed. CRYP, as its name implies, represents a portfolio of global stocks involved in the mining, exchange, and facilitation of cryptocurrencies.
Although this ASX ETF holds companies from countries as diverse as Brazil, China, and Singapore, more than 80% of its portfolio is domiciled in the United States.
Currently, CRYP's top investments include MicroStrategy, Coinbase Global, MARA Holdings and Cleanspark.
To explain this ASX ETF's incredible recent performance, we only need to look at the performance of these underlying holdings. Just take Microstrategy. Its shares have gained a whopping 38.5% since this time last month. Coinbase is up 35.7% over the same period, while Mara shares have put on 31.8%.
You get the picture.
These gains, of course, coincide with a huge run-up in the value of popular cryptocurrencies themselves. Bitcoin (CRYPTO: BTC) has vaulted 38% higher in US dollar terms since the end of October. Ethereum (CRYPTO: ETH) is up around 35% over the same period.
With these underlying fundamentals, the BetaShares Crypto Innovators ETF was always going to put on an exceptional show.
Too late to buy CRYP?
Many investors might be wondering whether it's too late to buy this ASX ETF, with these kinds of envy-inducing gains on full display.
Well, that's a difficult question to tackle. Just as CRYP's recent gains have been enabled by surging cryptocurrency prices, any future success will likely require these gains to continue.
Bitcoin and other cryptocurrencies are infamously volatile. The recent rises seem to have stemmed from the reelection of Donald Trump to the American presidency. But how long these gains hold is anyone's guess. For investors to buy CRYP units today, they will need to be confident that Bitcoin and the other tokens will keep rising in value over the rest of 2024 and into 2025.
If you're not confident that this will occur, it's probably not a good idea to buy CRYP units after their recent run. But if you're a true believer, you might be able to justify an investment today.
