Here’s the big picture for DeFi, Bitcoin ETFs

ambcrypto.com:

The rapid pace of crypto-adoption is increasing opportunities for investments in the market. And in doing so, many new investment tools have appeared over the years. The arrival of ETFs, DeFi, Metaverse, and more has expanded the scope for people to invest in. Here’s the latest in this mix of products…

Last week, Hashdex announced its DeFi ETF, DeFi11, which managed to attract over 2,200 investors and raised $10.5 million. However, this launch came after QR Capital listed its own DeFi ETF, QDFI11, on 8 February 2022.

As the first of its kind, these Exchange Traded Funds (ETFs) differ from Bitcoin ETFs significantly. Especially since they use more than one underlying asset in the form of different DeFi tokens.

In the case of QDFI11 (QR Capital), the ETF comprises of nine DeFi tokens. These include Uniswap, AAVE, Maker DAO, Curve, yearn.finance, Compound, SushiSwap, Synthetic, and Ox. 

However, the decision to launch them when the entire market is suffering did not play in their favor. Looking at these DeFi ETFs’ performance, it becomes evident that the prevalent market conditions definitely reflected their performance. 

QDFI11, which was listed on 8 February, has not seen a single good day on the price front. Since its listing at 12.10 Brazilian Real (BRL), the ETF has slipped by 44.55% to trade at 6.71 BRL. 

QR Capital QDFI11 ETF price action | Source: TradingView – AMBCrypto

The other DeFi ETF, DeFi11, although listed just four days ago, has actually performed worse. Dropping by 19.17% and trading at 39 BRL, the ETF lost 6.5% the day it was listed.

Hashdex DeFi11 ETF price action | Source: TradingView – AMBCrypto

Furthermore, over the last few days, trading volumes have been falling significantly, touching the lows of 46k