In June, crypto ETPs recorded depth of abyss returns

In June, crypto ETPs recorded depth of abyss returns

The European ETPs with the worst performance last month were all crypto products, and ETFs in the USA also listed for digital assets in the USA, also listed some of the worst returns during the month.

The highest negative returns in Europe went to the 21shares Aave ETP in Europe, which, according to Morningstar data, brought in June -52.6 %.

"These are miserable returns," Sumit Roy, Senior Analyst at ETF.com, told Blockworks. "As Volatil Krypto is to see 50 % declines in one month, it is really amazing. It only speaks for how treacherous the current cryptom market is."

The Bitcoin Cash ETP, Ethereum ETP and Bitcoin SUISS ETP of the company also made it to the list of 15 ETPs with the worst performance (stock market -traded products) with returns of -47.5 %or -40.5 %.

"Since we have experienced turbulent markets, we have remained in close communication with our customers and have only seen very few drains because investors remain strong in the long term," said Arthur Krause, director of the ETP product from 21Shares, block works in an email.

"In fact, we saw tributaries because investors buy the dip."

The 21shares Bitcoin ETP and Ethereum ETP recorded the largest tributaries on the European market in June, added Krause, with $ 20 million or $ 10 million in net egg money. Last week, the company introduced the first ETP within its planned "crypto winter" suite to help investors find their way around the challenging market environment.

"The entire crypto ecosystem is under pressure, as the fact shows that Bitcoin fell under the $ 20,000 brand at the end of the month and broke an important technical level," said Valerio Baselli, investment specialist from Morningstar, in A Blog post from Tuesday .

The price of Bitcoin was around $ 7:30 p.m. - about 0.5 % lower than 24 hours ago and about 34 % lower than one month.

June was the worst month since 2011 for Bitcoin, said Baselli and found that the asset-which was originally considered not to be correlated with the stock markets-crashed in parallel to the US shares. The second quarter of 2022 was the worst for the S&P 500 since 1970, while Nasdaq had recorded its weak half of the year since 1998.

"The investment class is firmly anchored in a deep bear market, and these returns reflect this," said Roy. "It is a memory that crypto and crypto ETPs represent an extremely high risk, with a similar risk profile as speculative technology shares."

As far as the US ETFs are concerned, seven of the 15 funds with the worst performance in June were crypto funds, according to the data received by Blockworks from Morningstar Direct.

vanecks Digital asset mining etf (DAM) recorded the lowest monthly yield within the category. That of the asset manager ETF for digital transformation (dapp) recorded an overall return of -41 %.

Bitcoin Futures ETFs, with such products from Proshares, Valkyrie Investments and Vaneck also brought in around -41 %. The Blockchain and Bitcoin Strategy ETF from Global X, which invested in a mixture of stocks from blockchain companies and in the USA, made Bitcoin futures, only cut off about half a percentage point.

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The contribution Crypto Etps Saw 'Abyysmal' Returns in June is not a financial advice.