Crypto ETFs led the way in performance over the last week, continuing to rebound from the “crypto winter” narrative that set the tone for digital assets last year. Digital assets strategies have started the year well, but the last week’s performance could be attributable in part to the bank crisis that has unfolded over the same time frame.
|Ticker||Name||1 Week Return|
|(BITO)||ProShares Bitcoin Strategy ETF||35.92%|
|(DEFI)||Hashdex Bitcoin Futures ETF||35.64%|
|(XBTF)||VanEck Bitcoin Strategy ETF||34.90%|
|(BTF)||Valkyrie Bitcoin Strategy ETF||34.85%|
|(MAXI)||Simplify Bitcoin Strategy PLUS Income ETF||34.81%|
|(WGMI)||Valkyrie Bitcoin Miners ETF||32.45%|
|(DAM)||VanEck Digital Assets Mining ETF||31.86%|
|(BITS)||Global X Blockchain & Bitcoin Strategy ETF||31.83%|
|(SATO)||Invesco Alerian Galaxy Crypto Economy ETF||28.44%|
|(BKCH)||Global X Blockchain ETF||28.05%|
See more: Silver Lining Possibilities for Bitcoin in Bank Strife
While it hasn’t always been seen as a safe haven in financial crisis, bitcoin, the first example, showed promise as an asset in which to take cover when the pandemic kicked off in 2020. The strong performance of bitcoin and other digital asset strategies over the last week may suggest investors are seeing a value opportunity in currencies that may be less directly tied to the financial system, than, say, banks.
The top ten ETFs all saw broadly similar returns, with the ProShares Bitcoin Strategy ETF (BITO) top with returns of 36%, followed by the Hashdex Bitcoin Futures ETF (DEFI), the VanEck Bitcoin Strategy ETF (XBTF), and the Simplify Bitcoin Strategy PLUS Income ETF (MAXI) all returning around 35%, as well.
Rounding out the top ten were strategies focused on digital asset mining and the crypto economy overall, like the Valkyrie Bitcoin Miners ETF (WGMI) which has returned 32.5% over the week as well as the VanEck Digital Assets Mining ETF (DAM) which turned up 31.9%.
Strikingly, the rising tide for digital assets boosted the blockchain, too, with the Global X Blockchain ETF (BKCH) returning 28%, picking up some of the boost also seen by the broader Global X Blockchain & Bitcoin Strategy ETF (BITS).
Whether the momentum seen by these crypto ETFs will continue may be determined at least in part by the court case surrounding a possible spot Bitcoin ETF. Grayscale’s suit against the SEC could reignite crypto for a broader audience in the ETF vehicle but until then, the suite of bitcoin and blockchain ETFs is riding the bank crisis to a rebound.
See more: Setting Odds on the GBTC Lawsuit
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