The second quarter brought with it a number of new risks and challenges for markets. U.S. equity investors weathered significant tariff-driven drawdowns in April, and ongoing volatility. Despite these challenges, the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) generated significant outperformance in Q2.
Ongoing market volatility and uncertainty around tariff impacts and inflation hang heavy over second half equity outlooks. It may prove beneficial to look to those strategies that generated notable performance in the macro environment of the second quarter as the trends continue into the summer.
For those looking for opportunity in alternatives, bitcoin has been an increasingly popular choice. The actively managed WGMI offers an alternative take on BTC investing, focusing on bitcoin miners instead of the cryptocurrency itself. The fund captures BTC momentum through the familiarity of equities via bitcoin miners.
Harnessing Bitcoin Ecosystem Momentum Through an Equity ETF
WGMI offers pure-play exposure to bitcoin miners in North America and generated impressive performance in the second quarter. The ETF gained 78.07% on a total return basis over the course of the second quarter this year according to Y-Charts data. It makes an attractive diversifier and complement to existing equity portfolios.
The fund is managed by a team of industry experts on both cryptocurrencies as well as the finance sector. The portfolio is built using the fund manager’s expertise of the technical, operational, and commercial workings of the bitcoin mining industry.
WGMI invests in those companies earning at least half their profits or revenue from bitcoin mining. The fund invests in companies providing hardware, software or services to bitcoin mining companies. Additionally, the strategy seeks companies that manufacture specialized chips used in bitcoin mining. WGMI does not invest in bitcoin.
Bitcoin has a finite amount of supply (21 million), with halving events approximately every four years. The most recent occurred in April 2024. Each halving reduces the amount of bitcoin paid for creation of new blocks, cutting supply in half. This means that over time, bitcoin miners will earn less. Instead, they’ll rely more on transaction fees earned for their efforts.
WGMI carries an expense ratio of 0.75%.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
