Bitcoin mining ETF sees strong start
80% of the ETF's holdings utilize at least 50% renewable energy for mining
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The Valkyrie Bitcoin Miners ETF is seeing strong interest in its first week of trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WGMI | VALKYRIE ETF TRUST II COINSHARES VALKYRIE BITCOIN | 25.79 | -0.67 | -2.53% |
Valkyrie Funds, an investment manager focused on the digital asset space, officially launched the ETF last week under the ticker WGMI.
Valkyrie says the goal is to provide investors with total return by investing in public companies in the bitcoin mining industry, with 80% of holdings utilizing at least 50% renewable energy for mining. The fund does not invest directly in bitcoin.
The five largest holdings include Argo, Bitfarm, CleanSpark, Hive and Stronghold.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ARBK | ARGO BLOCKCHAIN | 1.12 | 0.00 | 0.00% |
| BITF | BITFARMS LTD. | 2.05 | -0.12 | -5.53% |
| CLSK | CLEANSPARK INC | 12.96 | -1.03 | -7.39% |
| HIVE | HIVE DIGITAL TECHNOLOGIES | 4.00 | -0.16 | -3.85% |
| SDIG | STRONGHOLD DIGITAL MINING INC. | 4.90 | -0.25 | -4.85% |
The price of the largest cryptocurrency by market value has been under pressure, falling to the $42,000 level, as U.S. equities experience selling as well.
Investors look to capitalize on the push by miners to use green energy sources like solar, wind and hydroelectric. Aside from the environmental benefits, renewable energy tends to be cheaper than electricity generated from fossil fuels.
"Bitcoin miners are an alternative asset class that are rapidly coming into focus for many investors," explains Leah Wald, CEO at Valkyrie.
According to The Block, Bitcoin miners made more than $15 billion in revenue over the course of 2021. The estimate represents a year-over-year increase of 206%.
Wald added, "These companies are fully regulated the same as any other publicly traded company, and offer investors yet another avenue to gain indirect exposure to the digital asset space."
This is now the third ETF to be offered by Valkyrie Funds that connects investors with digital assets.