As a result of significant macroeconomic headwinds, ETFs tracking crypto companies have seen significant drawdowns this year.
Cryptocurrency-related Exchange Traded Funds (ETFs) have taken the top two spots in Australia for the year’s worst-performing ETFs, with the same story playing out in the United States.
BetaShares Crypto Innovators ETF (CRYP) and Cosmos Global Digital Miners Access ETF (DIGA) have provided investors in Australia with negative returns of nearly 82% and 72%, respectively, year to date (YTD) through December 30.
BetaShares debuted its ETF on the Australian Securities Exchange (ASX) in October 2021, just weeks after most cryptocurrencies reached all-time highs that they have yet to regain.
CRYP provides exposure to publicly traded blockchain and crypto companies such as Coinbase and Riot Blockchain, among others. Mike Novogratz’s investment firm Galaxy Digital is the largest current holding, accounting for 12.3% of the portfolio.
Through the Global Digital Miners Index, Cosmos’ DIGA ETF tracked the performance of a portfolio of companies focused on mining Bitcoin or other cryptocurrencies.
DIGA was similarly listed at an inopportune time on the Cboe Australia exchange in October 2021.
Only a year later, Cosmos requested that the ETF, as well as two others tracking BTC and Ether, be delisted from Cboe in October 2022 due to declining interest in cryptocurrency, which caused the funds’ net asset value to fall below $1 million.
According to ETF.com data, the top four worst-performing ETFs in the United States are crypto-related. However, inverse and leveraged funds are not included.
The Viridi Bitcoin Miners ETF (RIGZ), which aims to provide exposure to publicly traded crypto miners such as Riot and CleanSpark, was the worst performer. It gave investors a negative 87% return year to date.
Following closely behind were the VanEck Digital Transformation ETF (DAPP), the Bitwise Crypto Industry Innovators ETF (BITQ), and the First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT), all of which tracked the crypto industry through holdings in crypto firms such as Jack Dorsey’s Block Inc., Coinbase, Riot, Galaxy, and others.
DAPP and BITQ have given investors a YTD negative return of nearly 86% and 84.5%, respectively, while CRPT has given investors a YTD negative return of nearly 81.5%.