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Pouring water on Bitcoin

Portfolio > ETFs

Crypto-Linked ETFs Are 2022’s Biggest Losers

By Katie Greifeld

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Crypto-flavored exchange-traded funds are cluttering the industry’s worst-performing list so far this year.

The six worst-performing, non-leveraged ETFs in the $6.6 trillion arena in 2022 are all crypto-linked equity funds, according to data compiled by Bloomberg. The $63 million Global X Blockchain ETF (ticker BKCH) is the biggest loser with a year-to-date drop of 64%.

While crypto-linked ETFs have swelled in ranks over the past year, performance has been grim. Fading speculative fervor and tightening monetary policy has dragged Bitcoin lower by more than 30% this year, slamming the stocks of public companies involved with digital assets.

The silver lining is that even as the number of funds has ballooned, inflows have been light — minimizing the overall blow to portfolios, according to UBS.

Top 6 Worst Performing US Non-Leveraged ETFs Global X Blockchain BKCH -64% VanEck Digital Transformation DAPP -63% Bitwise Crypto Industry Innovators  BITQ -62% First Trust SkyBridge Crypto Industry and Digital Economy CRPT -61% Viridi Cleaner Energy Crypto-Mining & Semiconductor RIGZ -59% Defiance Digital Revolution NFTZ -55% (Table: Bloomberg)

“Crypto ETFs have proliferated like crazy over the past year, with more varieties and cheaper fees, but inflows have been miserable,” said James Malcolm, head of foreign exchange and crypto research at UBS. “So I don’t think the overall impact on ordinary people’s portfolios is material. This is still such a niche asset class, and the retail frenzy ended a year ago.”

The $32 million VanEck Digital Transformation ETF (DAPP) is a close second to BKCH with a 63% drawdown, followed by a 62% plunge in $63 million Bitwise Crypto Industry Innovators ETF (BITQ). The First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT), the Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) and the Defiance Digital Revolution ETF (NFTZ) all follow with falls of 55% or more.

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