The Betashares Crypto Innovators ETF (ASX: CRYP) is trading at $6.91 per unit, up 2.83% on Thursday.
This exchange-traded fund (ETF) offers ASX investors a way of investing in crypto without buying cryptocurrencies directly.
Instead, the ETF invests in global pure-play crypto companies that receive significant revenue from crypto or hold substantial crypto assets.
These companies are from various industry segments.
For example, 55.6% of the CRYP ETF is invested in application software, 16.7% in asset management and custody banks, 12.9% in financial exchanges and data, 4.6% in transaction and payment processing, and 3.2% in diversified banks.
Betashares describes CRYP's purpose:
The crypto economy has been growing strongly, aided by the performance of Bitcoin, Ethereum and other digital assets over the past ten years, with this growth anticipated to continue. The companies within CRYP are seeking to build on that success.
Like most ETFs, CRYP seeks to mirror the performance of an index before fees. That index is the Bitwise Crypto Innovators Index.
ASX CRYP currently holds 42 companies. These companies are predominantly based in the US, which accounts for 75.8% of the portfolio.
The next largest geographic exposures are Canada (5.4%), Germany (3.6%), Brazil (3.6%), China (3.4%), and Australia (2.7%).
ASX CRYP's top five holdings are the enterprise software company, MicroStrategy Inc (NASDAQ: MSTR) at 13.7%, crypto asset manager, Galaxy Digital Holdings Ltd (TSX: GLXY) at 11.4%, crypto exchange operator, Coinbase Global Inc (NASDAQ: COIN) at 9.6%, Bitcoin miner Marathon Digital Holdings Inc (NASDAQ: MARA) at 8.6%, and cryptocurrency mining operator Riot Platforms Inc (NASDAQ: RIOT) at 5.2%.
CRYP does not pay dividends (or 'distributions', as they are called with ETFs).
The management fee is 0.67% per annum.
So, if you invested $10,000 in the CRYP ETF a year ago, how did that turn out for you?
Let's find out.
Say you invested $10,000 in CRYP ETF a year ago…
On 5 June last year, the CRYP ETF closed at $5.13 apiece.
If you had put $10,000 into CRYP then, it would have bought you 1,949 units (for $9,998.37).
There's been a capital gain of $1.78 per unit since then. That translates to $3,469.22 of capital growth for you.
Thus, your portfolio is now worth $13,467.59.
On a $9,998.37 investment, your total return over the past 12 months, in percentage terms, is 34.7%.
In anyone's language, that's an amazing one-year return.
But the crypto arena is notoriously volatile.
This volatility is evident in the CRYP ETF's average annual return.
Since its inception on 2 November 2021, the CRYP ETF has delivered a negative average annual return of (17.54%).
Betashares says the ETF is only suitable for investors with a high risk tolerance.
According to Betashares:
An investment in CRYP should be considered very high risk.
Crypto-assets are highly speculative in nature and companies with significant exposure to crypto-asset markets can be expected to have a very high level of return volatility.
