Crypto-Linked ETFs Are 2022's Biggest Losers

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.

(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.