Scaramucci-Led Firm's Crypto Fund Soars After Trump Win
11/08/2024 21:08
CRPT, which holds Coinbase and other crypto services firms, hit a new high as bitcoin reached record levels.
The First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT), surged past its 52-week high Thursday, riding a wave of enthusiasm following Donald Trump’s presidential victory, according to etf.com data.
CRPT, which invests in companies supporting the crypto industry and digital economy, jumped 22% Tuesday, making it the top performing ETF of the day, according to the etf.com ETF Pulse tool. On Thursday, the fund rose another 5.4% to $18.09, marking a 219.6% increase from its 52-week low of $5.66. SkyBridge's founder, Anthony Scaramucci, served briefly as Trump's communications director but has subsequently become a vocal critic of the president-elect.
Trump's victory buoyed the crypto industry, which invested heavily in his campaign, after he branded himself as pro digital assets. Trump promised to create a strategic bitcoin stockpile, ensure all bitcoin would be mined in the U.S. and to fire Securities and Exchange Commission head Gary Gensler (federal law does not allow the president to fire Gensler).
CRYT's gains also underscored investors' growing interest in digital assets after the arrival of the first spot bitcoin ETFs. Those funds now manage more than $55 billion in assets and have soared since the election.
The fund’s largest holding, Coinbase Global Inc., represents 15.76% of the portfolio. Its shares surged 31% Wednesday as bitcoin moved toward a record high Thursday of over $77,000.
Galaxy Digital Holdings, CRPT’s second-largest holding at 15%, has soared 46.6% since Wednesday morning, with a gain of 15.4% on Thursday alone.
The actively managed fund, which debuted in Sept. 2021 and has a .85% expense ratio, requires companies in its portfolio to derive at least 50% of their revenue from crypto-related activities or dedicate half their assets to the industry.
CRPT's year-to-date returns stand at 45.3%, while its one-year performance has reached 130.3%.
Mining companies also feature prominently in the fund’s holdings, with MARA Holdings Inc. at 13.88%, Cipher Mining Inc. at 9.42%, and Iris Energy at 9.33%. Those firms also jumped following Trump's win. MARA's price has climbed more than 19% since market close on Tuesday.