Digital Assets Monthly Report | February

Blockchain ETF and Metaverse ETF Macro Outlook

The overall negative market sentiment in January also affected crypto-related equities in particular. More specifically, the ETC Group Global Metaverse UCITS ETF (METR) returned -2.83%.  Meanwhile, the ETC Group Blockchain UCITS ETF (KOIN) returned –18.87% in January alone after having outperformed by over 50% in December.

The industry continues to be closely linked to the performance of the underlying crypto markets. As such, price corrections in major holdings such as Riot Platforms or Marathon Digital had a significantly negative impact on the performance of the overall blockchain ETF.

From the macro side, the Fed guided markets towards later interest rates cuts, most likely to happen in May which was also dampening risk appetite in cryptoassets in January. In contrast, resurfacing risks in the traditional banking sector as evidenced by the sell off in New York Community Bank’s equity prices and Aozora bank in Japan provided a tailwind for cryptoassets, in particular Bitcoin.

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Sources available upon request. All performance figures are showing net data. Past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.

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Blockchain ETF and Metaverse ETF Performance
As of 31.01.2024

 1M3M6MYTD12M2YSI
ETC Group Digital Assets and Blockchain Equity UCITS ETF-18.87%36.88%-6.74%-18.87%46.73%-40.76%-70.27%
Solactive ETC Group Digital Assets and Blockchain Equity Index -18.87%37.06%-6.46%-18.87%47.78%-39.88%-69.85%
 1M3M6MYTD12MSI
ETC Group Global Metaverse UCITS ETF-2.83%24.79%6.90%-2.83%36.35%27.06%
Solactive ETC Group Global Metaverse Index-2.77%25.23%7.44%-2.77%37.53%28.58%

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/01/2024

Performance before inception is based on back tested data. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs, your capital is at risk.