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ETFs with crypto up, US dollar down

Yasmine Masi18 August 2022
Stocks board with the word ETFs in white

ETF Securities’ latest Weekly Exchange Traded Fund (ETF) Market Monitor for the week ending 12 August found products with exposure to cryptocurrency performed strongly, while those betting on the US dollar or against the US sharemarket fell.

The monitor saw ETFs with Ethereum exposure in particular were the top performers in the last week, with the Cosmos Purpose Ethereum Access ETF, the BetaShares Crypto Innovators ETF and ETFS 21Shares Ethereum ETF in the top four for highest one-week returns.

Evan Metcalf, Head of Product Management and Development at ETF Securities who presents the weekly monitor, said this trend could be attributed to an impending update of Ethereum titled ‘The Merge’.

According to ethereum.org, the update will reduce the cryptocurrency’s power consumption by 99.95 per cent and allow it to more efficiently process transactions to compete with other crypto coins like Solana and Cardano.

The bottom three performers of the week were in some way exposed to the US market and dollar, with ETFS Ultra Short Nasdaq 100 Hedge Fund dropping 5.9 per cent, Ultra Short Nasdaq 100 Hedge Fund falling by 6.8 per cent and BetaShares US Equities Strong Bear HF – Hedged dropping by 7.6 per cent.

ETF Securities also said the industry recorded $443 million in gross inflows and $263 million in report outflows, both apparently affected by the rebalancing of portfolios in separately managed accounts (SMAs).

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