The First Crypto ETF Arrives on the ASX! - BetaShares CRYP

A new Crypto ETF has arrived on the ASX! Let's see if its worth investing in, and how its different from normal ETFs. This isn’t the first ETF of its kind that gives investors access to the crypto in their portfolios because the US stock market already has the first Bitcoin linked ETF called "BITO". Nor is it the first Australian crypto ETF because the Chi-X already has "DIGA", because it's a bitcoin mining ETF. But the first ASX listing for a cryptocurrency ETF is by Betashares under the ticker "CRYP" and it made its debut on the 4th of November 2021 at a price of $11.25.

It’s not so much a fund that buys the actual coins themselves, but it actually invests in companies that are involved in the cryptocurrency space. So things like digital exchanges, mining operations, and companies that build the infrastructure needed for the coins themselves. And because it’s an ETF, it’s share price is not based on the supply and demand of the shares themselves like regular shares, but it’s tied to the Bitwise Crypto Industry Innovators 30 Index in the US stock market. So this is actually an ETF by Bitwise listed on the New York Stock Exchange, so CRYP is going to be the ASX equivalent, holding pretty much the same US companies.

Should you invest in crypto based ETFs? I personally would never encourage anyone to buy any Bitcoin or Ethereum. But if you do want to buy some, I think do it with a small amount of money that you can afford to lose. Because even though crypto can easily return 1000% in just a few weeks. It can just as easily crash 99% in just a few hours. But buying BetaShare’s new ETF probably won’t go to those extremes, because it's quite diversified and the holdings are in Company stocks with indirect ties to crypto rather than directly into the coins themselves. But keep in mind that these ETFs are being introduced at the time when Bitcoin and the likes are pretty much at the highest ever prices, so I do feel a higher amount of risk than usual. And also the ETF management fees for this fund are quite significant as well. They charge around 0.67% of your holdings value per year. Compare to a very vanilla ASX index fund like Vanguard’s VAS for example, which only charges 0.1%, so you’ll be paying almost 7 times the fees here when you invest in a crypto fund. But at the same time, if you compare the performance of the two, it’s also vastly different, so I guess you do get what you pay for here. Though the caveat here is that past performance is not a reliable indicator of future performance.

What do you think about the new Crypto ETF arriving on the ASX? Let me know what you think in the comments below and start a conversation with me!

⏱️TIMESTAMPS
0:00 Introduction - Crypto ETF
0:57 ASIC allows Crypto Assets
1:25 ETF Diversity
2:30 CRYP Holdings
3:42 CBA joins Crypto investments
4:18 Thoughts on Cryptocurrencies
5:44 Conclusion

Creative Commons — Attribution 3.0 Unported — CC BY 3.0

Disclaimer
The information on this video is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.

[rainbowbubby]

I've been watching your videos and you explain things really well. Looking forward to your future content

[justinlatimer]

As an investor very interested on entering the crypto market. Which would you recommend investing in. Thanks for all the advice !

[redskizedski]

Thanks mate for your invaluable knowledge!

[elmarwolters]

" as an investor " what has this stuff to do with investing ? Nothing . " as a gambler ", well let the fun begin if you have cash to burn . But don't kid yourself, you are in a casino, no matter what marketing crap you believe . Good luck !
I enjoyed your presentation, clear and to the point . Well done .

[cynthiakk]

Have u bought this etf? It is become one of my worse etf in all, y holding and I lose 50% value compared when it published.

[garethsimpson]

This is a really big move and just shows how strong Crypto is becoming

[verticusdomino]

Hi sir how do i sign up for a crpto etf...can i trade 0.01 lot for a start?

[Imvestors]

Investing in bitcoin is the best investment anyone can do this seasons, because bitcoin investment made a lot of people millionaires..

[lisayuan]

Investing in crypto now should be in every wise individuals list, in some months time you'll be ecstatic with the decision you made today.*