Worst ETFs of the Week: Crypto, Digital Assets, and Energy ETFs

Crypto continues bearish momentum

Last week was bearish for crypto ETFs. In Europe nine of the ten worst performing ETFs of the week are ETFs tracking cryptocurrencies. The cryptocurrencies that have performed the worst last week are Ether, Cardano, and Bitcoin.

The significant drop in crypto is partly due to the sell-off in the global stock market last Friday as fears around the Delta variant of Covid-19 increase and could delay economic recovery efforts. There is a bearish momentum that last around cryptocurrency market since the emergence of new regulatory restrictions several weeks ago. The global crypto market lost market cap by around $100 billion over last week, from $1.34 trillion at the beginning of the week to $1.27 trillion on last Friday.

We also find two ETFs, one in Europe and one in Americas, tracking the MVIS Global Digital Assets Equity index. This index tracks the performance of the largest and most liquid companies in the digital asset segment.

In Americas, the energy sector has underperformed more than cryptos. Seven out of the ten worst performing ETFs are related to the energy sector.

Bottom 10 ETFs of the Week: Crypto ETFs, Digital Asset ETFs and Energy ETFs

Europe

• 21Shares Polkadot ETP: -18,37%
• VanEck Vectors Digital Assets Equity UCITS ETF: -13,00%
• 21Shares Ethereum ETP: -11,99%
• CoinShares Physical Ethereum: -11,54%
• 21Shares Cardano ETP: -11,30%
• WisdomTree Ethereum ETP: -11,15%
• Ether Tracker One ETC: -11,13%
• Ether Tracker Euro ETC: -11,12%
• 21Shares Bitcoin Cash ETP: -10,97%
• ETHetc - ETC Group Physical Ethereum: -10,38%

Americas

• Invesco DWA Energy Momentum ETF: -13,91%
• VanEck Vectors Digital Transformation ETF : -13,71%
• Bitwise Crypto Industry Innovators ETF: -13,37%
• Invesco S&P SmallCap Energy ETF: -12,78%
• SPDR S&P Oil & Gas Equipment & Services ETF: -12,52%
• SPDR S&P Oil & Gas Exploration & Production ETF: -12,35%
• Ninepoint Energy Fund: -12,33%
• First Trust ISE-Revere Natural Gas Index Fund: -12,28%
• Evolve Ether ETF: -12,01%
• Invesco Dynamic Energy Exploration & Production ETF: -11,98%

Six of the ten ETFs in the European list track the Ether cryptocurrency, and one in the Americas list. Ether is the cryptocurrency of the Ethereum Blockchain. The words Ether and Ethereum are used interchangeably; they describe the same cryptocurrency (Ether) that is traded on the Ethereum blockchain.

The main reason for the sharp drop in Ethereum cryptocurrency is the announcement of Anthony Di Iorio, one of Ethereum’s eight cofounders. He said that he is leaving the world of cryptocurrency for personal security reasons. This announcement was a blow not only to Ether but also to the crypto market as a whole, as Di Iorio is an early adopter of Bitcoin, and a precursor in the world of cryptocurrencies and blockchain.

For the European worst performing ETFs, Cardano and Polkadot cryptos are very similar, they provide the same services. Both are specialized in smart contracts. A smart contract is a digital contract with the agreement’s terms between the seller and the buyer being written into lines of codes. This contract is linked to a blockchain network. The code drives the execution of the smart contract, and each transaction is irreversible and trackable.

For both, America and Europe, the second largest drops of last week in both rankings are for the VanEck Vectors Digital Assets Equity UCITS ETF (Europe) and the VanEck Vectors Digital Transformation ETF (Americas). Those ETFs invest directly in MVIS Global Digital Assets Equity index. This index is composed of worldwide companies that are driving the blockchain revolution. The index continually adapts to include pure plays on the blockchain megatrend. The index can also invest in companies that specialized in payment gateways, digital asset infrastructure businesses, software services, mining operations, and equipment, technology or services to the digital assets industry.

Finally, in America, the energy sector suffered a lot last week. This large drop in energy prices is essentially because OPEC+ and its allies have reached an agreement on increasing oil production. After several days of negotiations, they have reached an agreement to increase oil production by 400,000 barrels per day each month from August. This agreement severely affected oil prices, dragging other energies with it in its downfall. OPEC +, which stands for the Organization of Petroleum Exporting Countries, is an intergovernmental organization of countries aimed at negotiating with oil companies the production of oil, its price and future concession rights. Today the organization is composed of 24 members.

Keep reading the Best ETFs of the Week here.

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