Once again, crypto funds have taken their place among the top-performing ETFs of the last week. Investors may be eyeing the space as a source of diversification away from the U.S. dollar and an inflationary U.S. economy. Crypto may also be benefitting from the recent drastic spike in interest in AI, with crypto perhaps set to benefit from developments. Whatever the case, crypto strategies are performing and merit a closer look.
The Global X Blockchain ETF (BKCH) led the way for the crypto ETFs this week, returning 9% over the last week. The strategy tracks the Solactive Blockchain Index, which includes firms deriving at least 50% of their revenues from certain areas. Those areas include the likes of digital asset mining, blockchain integration, blockchain transactions, and more.
BKCH charges a 50 basis point fee for its services and is approaching its three-year anniversary next July. BKCH currently holds $71.5 million in AUM, with nearly all its AUM growth credited to price influence rather than flows.
Joining BKCH, the First Trust Skybridge Crypto Industry and Digital Economy ETF (CRPT) has returned 8.3% over the last week. CRPT takes an active turn towards crypto and also aims to hit its three-year launch anniversary next year. At $17.6 million in AUM, CRPT holds fewer assets than BKCH. The strategy invests worldwide in crypto and crypto-related names including asset miners, mining equipment suppliers, and various digital platforms.
Crypto funds may have taken most of the places in the top 12 performers, but they weren’t alone. Uranium strategies took fewer places, but they did manage to take the top two spots. The Sprott Junior Uranium Miners ETF (URNJ) has returned 11.7%, while the Sprott Uranium Miners ETF (URNM) returned 9.7%. Ongoing energy demand in Europe, especially as summer arrives, may be contributing to interest in the nuclear fuel source.
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