Summary: The best ETFs available for cryptocurrency investors in Australia is through CoinSpot's Bundle product. They have significantly outperformed the ASX equivalent Betashares Innovation Crypto ETF (ASX:CRYP) since their listing.
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Cryptocurrency Exchange Traded Funds (ETFs) are index products that allow you to invest in a basket of digital assets. There is a variety of different Crypto ETFs in Australia that gives investors exposure to different aspects of the digital asset ecosystem.
This guide will help you find the best Crypto ETFs in Australia to get broad exposure to Web3, DeFi, and more.
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)
Top 10 Market Cap Bundle
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).
The Crypto ETFs on the ASX are a great 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 the optionality is far greater. CoinSpot also regularly update its bundle lists to keep up to date with current market trends.