← Go back Sep 09, 2023
Valkyrie Bitcoin Miners ETF (WGMI) has seen a remarkable surge of about 117% this year, making it the top-performing ETF of the first nine months of 2023. Some stocks in the ETF’s portfolio have more than doubled, including Cipher Mining Technologies Inc., Bit Digital, Iris Energy, Applied Digital Corporation, and Nvidia. Factors behind the ETF’s performance include the 83% increase in Bitcoin’s value to $31,035 in early 2023, despite economic uncertainties and regulatory crackdowns on some crypto exchanges. Key factors that sparked optimism among institutional investors leading to the surge in cryptocurrency include high-profile ETF applications, court rulings favoring ETF applications, launch of new crypto exchanges, and changing sentiments among institutional investors. The ETF application by BlackRock, the world’s largest asset manager, signaled increased interest in Bitcoin among large institutional players. The Securities and Exchange Commission was ordered by the court to reconsider asset manager Grayscale’s application to launch the first bitcoin ETF, which would allow anyone with a brokerage account to invest in the cryptocurrency. The launch of EDX Markets, a new digital asset exchange backed by major players, also contributed to the positive sentiment. Institutional investors, who were previously pulling cash out of products due to regulatory concerns, are now showing increased interest and in Bitcoin. Institutions such as JPMorgan and , which were previously against virtual currencies, have now started implementing them into their systems, signaling growing acceptance among institutional investors. The Valkyrie Bitcoin Miners ETF, an actively managed ETF, invests at least 80% of its net assets in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. It has accumulated $15.3 million in its asset base while trading in an average daily volume of 119,000 shares. The top-performing stocks in the WGMI portfolio include Cipher Mining, Bit Digital, Iris Energy, Applied Digital, and Nvidia. These companies have seen significant increases in their stock values, contributing to the ETF’s impressive performance. The surge in the Valkyrie Bitcoin Miners ETF can largely be attributed to the growing acceptance and interest in Bitcoin and cryptocurrency among institutional investors. The positive developments in ETF applications, launch of new crypto exchanges, and the impressive performance of key stocks in the ETF’s portfolio have all played a significant role in the ETF’s performance. This trend indicates a growing acceptance and potential for the continued growth of Bitcoin and cryptocurrency investments.
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