Crypto ETFs Suffer 39.5% Price Drop, 15% and 5.5% YTD Losses
YieldMax MSTR Option Income ETF weekly distributions fell from $4.42 to $0.30 with share price down 39.5% as MicroStrategy plunged 46.8%. First Trust SkyBridge CRPT ETF lost 15% YTD with Bitcoin off 22%, while VanEck BUZZ ETF slid 5.5% YTD despite holding PayPal and MicroStrategy.
1. MSTY Distribution Collapse
The YieldMax MSTR Option Income Strategy ETF saw its weekly payout decline from $4.42 at peak to $0.30 as the fund’s NAV eroded by a 39.5% share price drop. This mirrored a 46.8% plunge in MicroStrategy shares, shrinking the premiums generated by covered call writing.
2. CRPT Performance and Bitcoin Exposure
First Trust SkyBridge CRPT ETF dropped 15% year-to-date after Bitcoin slid 22% since January, pressuring revenue-sensitive miners and exchanges making up its top holdings. Short interest in CRPT rose 19.7% in January, reflecting growing bearish sentiment on crypto-linked equities.
3. BUZZ ETF Sentiment-Driven Risk
VanEck Social Sentiment BUZZ ETF fell 5.5% YTD and 12.3% over the past month despite a 27.8% gain over 12 months, as negative price action outpaced positive online chatter. AI-driven screens kept PayPal and MicroStrategy in the portfolio despite YTD declines of 20.9% and 14.8%, respectively.