One of the biggest trends looking back on 2024, crypto ETFs, may not be done for the year yet. Spot bitcoin ETFs arrived to broad celebration across the ETF landscape following months and months of regulatory discourse. Spot bitcoin ETFs gathered significant assets in a relatively short period of time. Though many of those funds have slowed in AUM growth, the space has proven durable. That has set the stage for the bitcoin mining ETF WGMI, the Coinshares Valkyrie Bitcoin Fund, to see accelerating returns to end the year.
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WGMI actively invests in firms deriving at least 50% of revenues from bitcoin mining operations and supporting services. The bitcoin mining ETF charges 75 basis points for its approach. Notably, the strategy does not invest directly in bitcoin or in bitcoin futures contracts. It seeks out firms providing chips, software, and other important hardware to bitcoin mining.
That strategy has helped the bitcoin mining ETF see improved performance of late. The strategy returned 6.4% over the last three months, per VettaFi data, but has returned 19.6% over the last month. That one-month metric outperformed both the ETF’s ETF Database Category and FactSet Segment averages.
Intriguingly, that may speak to investor optimism about cryptocurrency and crypto mining, writ large. That may owe to expectations that crypto could benefit from election-related uncertainty. At the same time, however, it could relate to a longer term, growing theme of investor interest and uptake of cryptocurrencies. Either way, an ETF like WGMI can provide exposure to that upswing, playing a kind of alternative role in portfolios. With notable potential and a three-year ETF milestone on the horizon, don’t miss out on WGMI as an option.
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