A Dozen Crypto ETFs That All Act the Same: An Industry Identity Crisis
- Correlations between most crypto equity ETFs is close to 1
- Tight linkages should ease as new companies enter space: BI
More than a dozen crypto-linked ETFs have launched over the past two years, attempting to track everything from the metaverse to Bitcoin miners to various blockchains. However, near-perfect correlations show those attempts at differentiation have largely been futile.
The $572 million Amplify Transformational Data Sharing ETF (ticker BLOK), the largest such fund, has a correlation of 0.9 or greater with 14 of 18 other US-listed crypto-themed ETFs, with a reading of 1 indicating perfect harmony, data compiled by Bloomberg show. The 21-day correlation coefficient between BLOK -- which holds blockchain-focused companies, -- and the $489 million Roundhill Ball Metaverse ETF (METV), which seeks exposure to the nascent digital world, currently stands at 0.91.