Like us, you might have noticed the BetaShares Crypto Innovators ETF (ASX: CRYP) and think that now could be a good time to consider taking a closer look. Here’s what ETF investors need to know.
1. What does the CRYP ETF do for investors?
The CRYP ETF tracks the Bitwise Crypto Innovators Index. CRYP does not invest in crypto assets itself but holds shares of ~32 companies, mainly based in the United States.
The CRYP ETF does not directly invest in cryptocurrencies such as Bitcoin or Ethereum, instead it provides a ‘picks and shovels’ exposure to the crypto ‘gold rush’. In this way, investors in CRYP are not exposed to the highly volatile cryptocurrency prices but rather the companies and technology providers which make cryptocurrencies possible.
2. Funds under management (FUM)
The BetaShares CRYP ETF had $125.74 million of money invested when we last pulled the monthly numbers. Given CRYP’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
3. Don’t forget about the fees & costs
BetaShares charges investors a yearly management fee of 0.67% for the CRYP ETF. This means that if you invested $2,000 in CRYP for a full year, you could expect to pay management fees of around $13.40.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Now what?
These are just a few of the considerations or factors you would need to look at when running the rule over the CRYP ETF. Before you go any further, take a look at our free BetaShares CRYP report. And while you’re at it, don’t forget to search our complete list of ASX ETFs.
