Crypto ETFs on the ASX in Australia
The main crypto ETF available on the Australian Stock Exchange is called the Betashares Innovation Crypto ETF (ASX:CRYP). This ETF does not invest directly into digital assets like Bitcoin or Ethereum, but a basket of stocks that are directly or indirectly associated with cryptocurrency.
As at time of writing, the ETFs Top 10 holdings are as follows:
- Silvergate Capital Bank (12.5%)
- Microstrategy Inc (9.3%)
- Galaxy Digital Holdings Ltd (8.7%)
- Coinbase Global Inc (7.4%)
- Marathon Digital Holdings Inc (5.5%)
- Core Scientific Inc (4.6%)
- Riot Blockchain Inc (4.5%)
- Canaan Inc (3.7%)
- Interactive Brokers Group Inc (2.7%)
- Bakkt Holdings INC (2.6%)
Is the Betashares Innovation Crypto ETF on ASX a good Investment?
The Betashares Innovation Crypto ETF is a relatively static ETF that does not keep up to date with the ever-changing landscape of the cryptocurrency space. Further, the Betashares Crypto ETF in Australia does not give you ownership of cryptocurrency assets like Bitcoin, Ethereum or Solana.
Instead, their ETF gives you exposure to companies that invest in the digital asset ecosystem. This adds another layer of risk because you are now betting on a team to execute an investment plan, as opposed to betting on the underlying assets like BTC or ETH.
What is the best Crypto ETF in Australia?
The best Crypto ETF products in Australia are CoinSpot Bundles. These products give you equally weighted exposures to different sub-sectors within the crypto economy like Layer 1's (Ethereum, Solana, Avalanche etc), GameFi, DeFi, NFTs, Metaverse, and more.
The current bundles available via CoinSpot are as follows:
- Dominant Duo (BTC/ETH equally weighted)
- DeFi Bundle
- NFT Bundle
- Metaverse Bundle
- Top 10 Market Cap Bundle
- Many more
How has the Betashares Crypto ETF Performed?
The Betashares Crypto ETF has significantly underperformed the market since its inception in November of 2021. Despite seeing $8m in volume within the first 24 hours of launch, the price is down significantly while crypto market sectors like DeFi and the Metaverse have seen a resurgence
On a relative basis, this does make it seem like a worse-off investment on a risk-reward basis (not investment advice).
Are Crypto ETFs good Investments?
Crypto ETFs are only a good investment option if you are committed to only using popular stock trading apps like CommSec or Nab Trade. Otherwise, if you have the flexibility to use cryptocurrency exchanges like CoinSpot to buy ETF exposure - we would generally recommend that option.
The fees are cheaper and exposure to the underlying assets has typically outperformed crypto-related ETFs on the ASX. CoinSpot also regularly update its bundle lists to keep up to date with current market trends.
The Bottom Line
Crypto ETFs on the ASX & other stock brokers in Australia give investors an easy way to invest in digital assets without having to open a crypto wallet or buy the underlying asset. However, these products are currently lagging behind other options available like CoinSpot Bundles and do not necessarily provide a better risk-reward ratio.
If you want exposure to the digital asset economy, we would recommend you look into CoinSpot Bundles instead. Not only are they cheaper in fees, but they also provide greater exposure to Web3, DeFi, and more. As always, do your own research before deciding on an investment plan. Good luck!