Two crypto-related ETFs were Australia’s worst performers in 2022

[ad_1]

Cryptocurrency-related exchange-traded funds (ETFs) took the top two spots for Australia’s worst-performing ETFs for the year, with the same story playing out in the United States.

BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) provided investors Down Under with negative returns of nearly 82% and 72% respectively year-to-date (YTD) through December. 30.

BetaShares launched its ETF on the Australian Securities Exchange (ASX) in October 2021, just weeks before most cryptocurrencies hit all-time highs they have yet to recover.

CRYP was down slightly more than 81.8% since writing began. Image: Google Finance

CRYP offers exposure to publicly traded blockchain and crypto companies such as Coinbase and mining company Riot Blockchain, among others. The current largest holding at 12.3% of its portfolio is Mike Novogratz’s investment firm Galaxy Digital.

Cosmos DIGA ETF has tracked the performance of a portfolio of companies focused on mining Bitcoin (BTC) or other cryptocurrencies through the Global Digital Miners Index.

DIGA was also listed at a bad time in October 2021 on the Cboe Australia stock exchange.

Just a year later, Cosmos asked the ETF, along with two others that tracked BTC and Ether (ETH), to be delisted from Cboeas. Declining interest in crypto has seen the net asset value of funds drop below $1 million.

US-based ETFs saw a similar trend, with the four worst-performing ETFs being crypto-related, according to data from ETF.com. This, however, excludes inverse and leveraged funds.

The worst is the Viridi Bitcoin Miners ETF (RIGZ), which aims to provide exposure to exchange-listed crypto miners such as Riot and CleanSpark. It has provided investors with a negative 87% return year-to-date.

RIGZ fell just over 87% for the year. Image: Google Finance

VanEck Digital Transformation ETF (DAPP), Bitwise Crypto Industry Innovators ETF (BITQ) and First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) follow close behind. All followed the crypto industry through stakes in crypto companies such as Jack Dorseys Block Inc., Coinbase, Riot, Galaxy and others.

DAPP and BITQ have given investors a negative year-to-date return of almost 86% and 84.5% respectively, while CRPT is down almost 81.5% over the same period.

Related: What to expect from crypto the year after FTX

However, the losses this year were not limited to the crypto sector alone. Over the past year, US bonds, stocks and even real estate have had their worst year in decades and, in some cases, centuries.

A traditional portfolio made up of a 60/40 mix of stocks and bonds, respectively, has seen the worst performance since the midpoint of the Great Depression in 1932.

MAMAA shares, the collective name of Big Tech players Meta, Apple, Microsoft, Amazon and Alphabet (Google) have seen their share prices fall by up to 70% over the year. Meanwhile, the cryptocurrency’s market capitalization fell around 64.5% on the year.

[ad_2]