Is now the time to get into crypto? Many investors may be looking to get into the space for the first time as the regulatory outlook improves. In that case, it may be worth looking at companies engaged in bitcoin mining rather than getting into spot bitcoin, specifically. Those without any crypto exposure may look to a bitcoin mining ETF as a bridge to spot.
See more: Survey: Crypto Regulations Still Holding Back Investment in Digital Assets
The CoinShares Valkyrie Bitcoin Miners ETF (WGMI ) is nearing its three-year ETF milestone, coming this February. The fund charges a 75 basis point fee for its active approach. It invests in firms that derive at least 50% of revenue from bitcoin mining and related services.
WGMI evaluates firms individually to seek those best positioned for capital appreciation. It also considers ESG factors, leaning toward bitcoin miners and services using renewable energy. The bitcoin mining ETF takes an actively approach, too, leaning on its issuer’s expertise and seasoned management in the crypto space.
Given that bitcoin and its related services rise along with broader tech trends, continued rate cuts could significantly boost WGMI’s outlook. WGMI has returned a massive 186.7% over one year, per ETF Database data. That has outperformed both its ETF Database Category and FactSet Segment averages. It has done well in the short term, too, returning 32.1% over one month. That significantly outperformed its ETF Database Category and FactSet Segment averages over one month. Those averages come in at 2.8% and 14.36%, respectively.
Looking ahead, the coming Trump administration has signaled significant positivity toward crypto. That could make it an appealing option to get slightly diversified tech exposure. While tech-focused and impacted by tech trends, bitcoin miners can benefit from those regulatory changes. At the same time, given that crypto can zig sometimes when certain tech areas zag, it can offer a slight variation on tech exposure.
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