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Highlights
- On November 4, BetaShares, an Australian fund management firm, launched BetaShares Crypto ETF (ASX:CRYP) on the ASX.
- BetaShares has become one of Australia's most prominent fund managers, specialising in ASX-listed exchange traded funds.
- BetaShares does not directly invest in digital currencies but instead monitors the performance of an index of major corporations heavily involved in crypto-related activities.
On November 4, BetaShares, an Australian fund management firm, launched BetaShares Crypto ETF (ASX:CRYP) on the ASX. CRYP has had a bearish run in the month of December.
Any newly launched stock is expected to grow rapidly, but investors were taken aback by the sudden drop.
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But, before taking a look at what caused CRYP to crash so quickly, lets us understand BetaShares first.
What is BetaShares and what role does it play in the crypto market?
BetaShares has become one of Australia's most prominent fund managers, specialising in ASX-listed exchange traded funds.
BetaShares provides simple, low-cost, liquid access to the most comprehensive range of ETF investment solutions accessible on the ASX. It also provides an investment strategy and covers nearly all asset classes.
In crypto, BetaShares does not directly invest in digital currencies but instead, monitors the performance of an index of major corporations heavily involved in crypto-related activities.
However, investors have taken note of BetaShares Crypto ETF (ASX:CRYP), which has amassed US$129 million in assets under management in just over a month.
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Why is CRYP plummeting?
The following contributed to CRYP performance going south.
- Marathon Digital, a cryptocurrency miner, is another significant CRYP holding that has lost 39% of its value.
- CRYP could not ride out the storm due to several incidents, including the Omicron corona variant, interest rates, and the liquidation of high-volatility company assets.
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Outlook
CRYP delivered some handsome gains to investors in early days after its ASX debut but has struggled in recent weeks, despite its popularity.
Many investors might be sitting on huge losses as a result of the massive drop, hoping CRYP will perform better in 2022.
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