Insights

Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days?

After a record start, the exchange-traded fund has taken a dive. Here are the details
The post Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days? appeared first on The Motley Fool Australia. –

The Betashares Crypto Innovators ETF (ASX: CRYP) launched with record success on 4 November.

The exchange-traded fund (ETF) reported $8 million worth of trades within the first 15 minutes of the opening bell.

By the end of the day, CRYP had set new all-time highs for a managed investment on the ASX, finishing its first day with net buys of $39.7 million.

Within 4 trading days, the CRYP share price had gained 11%.

But over the last 10 days, things have gone the other way, with the ETF sliding 12% at the time of writing. That’s despite a 2% intraday gain today.

So, what’s going on?

Why is CRYP down 12% in 10 days?

There look to be 2 interrelated reasons for CRYP’s retracing share price.

First, the price of the world’s top two cryptocurrencies has taken a tumble.

Ten days ago, Bitcoin (CRYPTO: BTC) was trading for US$65,961 (AU$91,611). Today it’s worth US$58,163, down some 12%, according to data from CoinMarketCap.

The world’s No. 2 token by market valuation, Ethereum (CRYPTO: ETH), has also lost ground. Over 10 days Ether has dropped from US$4,725 to US$4,316, down approximately 9%.

That’s the underlying price pressure for CRYP.

What else is seeing the ETF come under pressure?

CRYP doesn’t invest directly in Bitcoin, Ethereum, or any other altcoins.

Instead, the ETF “aims to track the performance of an index (before fees and expenses) that provides exposure to global companies at the forefront of the dynamic crypto-economy”, according to BetaShares.

CRYP currently has 32 holdings. Its top 5 holdings as of this morning are:

Silvergate Capital Corp (12.3%)

Galaxy Digital Holdings Ltd (11.6%)

Marathon Digital Holdings Inc (10.5%)

Coinbase Global Inc (10.0%)

Microstrategy Incorporated (8.6%)

And with the exception of Silvergate, which has seen its share price gain 1% since the closing bell on 12 November, all the other shares are well down.

Galaxy’s share price is down 16% in that time; Marathon’s shares have lost 31%; Coinbase is down 9%, and the Microstrategy share price has slipped 14%.

There will be various reasons for these companies coming under pressure. But the recent losses in the big cryptos are certainly a hefty headwind. And the combination looks to be dragging on the CRYP share price.

The post Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days? appeared first on The Motley Fool Australia.

Should you invest $1,000 in CRYP right now?

Before you consider CRYP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CRYP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Are there more crypto ETFs coming to the ASX in the future?

Why was the new BetaShares Crypto Innovators ETF (ASX:CRYP) down 5% on Thursday?

Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today

BetaShares Crypto Innovators ETF (ASX:CRYP) breaks opening day records…now what?

The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!