• Wed. Jun 12th, 2024

Australia Recalls Two Local Crypto ETFs For Their Poor Performance In 2022

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Jan 1, 2023

In the year 2022, several cryptocurrency exchange-traded funds (ETFs) have been launched across the globe.

Companies based around the world have launched their crypto ETFs on exchanges of their respective countries or through the most popular exchanges in the world.

Australia is a Pro in Crypto

When it comes to launching crypto ETFs, Australia has witnessed a great surge in the demand in the country. So many companies from all over Australia have launched their crypto ETFs.

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This is because the demand for cryptocurrencies has continued to rise in Australia.

Even the latest surveys carried out by a number of international data-gathering firms have revealed Australians are among the most crypto enthusiasts.

They have speculated that Australia would become one of the largest and most welcoming countries when it comes to the adoption of cryptocurrencies.

High Level of Adoption of Crypto ETFs in Australia

Australian businesses are also eager to gain exposure to cryptocurrencies but they want to play it safe at the moment. At first, they want to interact with cryptocurrencies in a safe and secure environment.

This means that they are completely fine and find it more convenient for them to deal with cryptocurrencies indirectly through ETFs.

This is where the tech and crypto companies come in that have recognized the true potential of the crypto-blockchain technology.

Therefore, they have started introducing multiple kinds of utilities involving cryptocurrencies and ETFs are on top of the list.

Not Every ETF is a Success

Despite the demand for crypto being high in Australia, it does not mean that every ETF would be a success. Therefore, you should bear this in mind when it comes to interacting with ETFs based in Australia for crypto.

Just recently, two major cryptocurrency ETFs have been awarded as the worst exchange-traded funds for cryptocurrencies in Australia for the year 2022.

It is important to mention that the United States is also introducing many ETFs but it does not mean every platform is a success. The adoption level of the ETFs is based on the public’s interest to gain exposure to crypto.

If they are not interested or if there is an abundance of ETFs in the market, the investors will find it difficult to pick and trade with all of the ETFs.

Instead, they will go for the ones that are the oldest or have the highest following.

DIGA and CRYP were awarded as the Worst ETFs

The latest ETF report from Australia has revealed the names of the two worst cryptos ETFs in the country. The first one is the Cosmos Global Digital Miners Access ETF (DIGA).

The second one is the BetaShares Crypto Innovators ETF (CRYP). Both ETFs have done nothing but provide investors with returns that were in huge negative figures.

Even now, the ETFs are the worst performers in the ETF markets and they are constantly losing money for their investors.

According to the ETF report, DIGA has recorded a 72% plunge in its share prices since the beginning of the year.

As for CRYP, it has also suffered a major dip, displaying an 82% plunge from the beginning of the year until now.

The data for the report was compiled by the Australian cryptocurrency data analyzing firms on December 30.

DIGA and CRYP Enlisting 

As per the reports, both ETFs had been listed on their respective exchanges back on October 21.

The DIGA ETF was enlisted through the Cboe Australia Exchange back on October 2021. The BetaShares ETF had been launched back in October 2021 as well and it was done through the Australian Securities Exchange (ASX).

The timing proved to be extremely bad for enlisting both ETFs. This was the time when the cryptocurrency industry demised tremendously and has not recovered since then.

The plunge has been recorded as investors have kept losing interest in cryptocurrencies. With the interest being lost in cryptocurrencies, the ETFs have been rendered useless.

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