Crypto ETFs in Australia Record Worst Performance in 2022
• Two crypto-related ETFs were the worst-performing in Australia for 2022.
• BetaShares Crypto Innovators ETF and Cosmos Global Digital Miners Access ETF provided investors with negative returns of nearly 82% and 72% year to date.
• These ETFs track publicly listed blockchain and crypto companies such as Coinbase and mining company Riot Blockchain, among others.
The cryptocurrency market has seen a tumultuous year for investors, and this has been no different for those investing in exchange-traded funds (ETFs) tracking crypto companies. In Australia, two crypto-related ETFs have been the worst-performing in the country for 2022.
BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) have provided investors Down Under with respective negative returns of nearly 82% and 72% year to date (YTD) throughDec. 30.
BetaShares launched its ETF on the Australian Securities Exchange (ASX) in October 2021, mere weeks before most cryptocurrencies hit all-time highs that they’re yet to regain. CRYP provides exposure to publicly listed blockchain and crypto companies such as Coinbase and mining company Riot Blockchain, among others. The largest current holding at 12.3% of its portfolio is Mike Novogratz’s investment firm Galaxy Digital.
Cosmos‘ DIGA ETF tracked the performance of a portfolio of companies focused on mining Bitcoin (BTC) or other cryptocurrencies through the Global Digital Miners Index. DIGA was similarly listed at a poor time in October 2021 on the Cboe Australia exchange.
The underperformance of crypto ETFs in Australia can be attributed to macroeconomic headwinds which have caused investors to shy away from riskier assets. This has been mirrored in the United States, where crypto ETFs have also been among some of the worst-performing ETFs of the year.
Most crypto investors are now hoping to see a recovery in the coming year and a return to the bullish sentiment that was seen in the late-2021 bull run. This will be essential to see a turnaround in the performance of crypto ETFs, as well as the broader cryptocurrency market.