Crypto-ETPs saw “Abysmal” returns in June

The worst European ETPs last month were all cryptocurrencies, and digital asset-focused ETFs in the US also achieved some of the worst returns during the month.

The highest negative return during the month in Europe went to 21Shares Aave ETP, which gave -52.6% in June, according to Morningstar data.

“These are incredible returns,” Senior Analyst Sumit Roy at ETF.com told Blockworks. “As volatile as crypto is, seeing a 50% decline in a month is truly amazing. It’s just talking about how treacherous the current crypto market is.”

The company’s Bitcoin Cash ETP, Ethereum ETP and Bitcoin Suisse ETP also appeared on the list of top 15 worst performing ETPs (exchange traded products) during the month, with returns of -47.5%, -46.5% and -40 respectively. , 5%.

“As we have experienced turbulent markets, we have maintained close communication with our customers and seen very little outflow as investors remain strong in the long run,” Arthur Krause, 21Shares’ Director of ETP Product, told Blockworks in an email .

“In fact, we have seen inflows when investors buy the downturn.”

21Shares Bitcoin ETP and Ethereum ETP recorded the largest inflows in the European market in June, Krause added, with $ 20 million and $ 10 million in net new assets, respectively. The company launched the first ETP in its planned “crypto winter” suite last week in an effort to help investors navigate the challenging market environment.

“The entire crypto ecosystem is under pressure, as evidenced by the fact that bitcoin fell below the $ 20,000 mark at the end of the month, breaking a key technical level,” Morningstar Investment Specialist Valerio Baselli said in a blog post on Tuesday.

The price of Bitcoin was about $ 19,620 at 12:30 pm ET, according to data compiled by Blockworks – down about 0.5% from 24 hours ago and down about 34% from a month ago.

June was the worst month since 2011 for bitcoin, Baselli said, noting that the asset – originally thought to be uncorrelated to stock markets – plunged in parallel with US equities. The second quarter of 2022 was the worst since 1970 for the S&P 500, while the Nasdaq recorded its weakest half of the year since 1998, he added.

“The Akta class is firmly rooted in a deep bear market, and these returns are a reflection of that,” said Roy. “It is a reminder that crypto- and crypto-ETPs are extremely high risk, with a similar risk profile as speculative technology stocks.”

In terms of US ETFs, seven of the 15 worst-performing funds in June were cryptocurrencies, according to Morningstar Direct data obtained by Blockworks.

VanEck’s Digital Assets Mining ETF (DAM) had the lowest monthly return in the category, at -43%. The asset manager’s Digital Transformation ETF (DAPP) had a total return of -41% over the period.

Bitcoin futures ETFs received similar returns, with such products from ProShares, Valkyrie Investments and VanEck also yielding approximately -41%. Global X’s Blockchain and Bitcoin Strategy ETF, which invests in a mix of stock values ​​in blockchain companies and US-listed bitcoin futures, performed only about half a percentage point better.

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