2 months ago
CoinShares' Valkyrie Bitcoin Mining (WGMI) exchange-traded money (ETF) is the worst-performing ETF of 2025, down 43% year-to-date, according to Senior Bloomberg ETF expert Eric Balchunas.
The ETF is made up of respective publically traded bitcoin (BTC) miners. IREN (IREN) is the largest holding astatine 15%, which is down 42%. Core Scientific (CORZ) follows with a 14% weighting and a 48% decline, portion Cipher Mining (CIFR), the third-largest holding astatine 9.6%, is down 52%. Even NVIDIA (NVDA), the sixth-largest holding astatine 5%, has dropped implicit 20% this year.
According to its investment strategy, "The ETF volition put successful companies that deduce astatine slightest 50% of their gross oregon profits from bitcoin mining operations and/or from providing specialized chips, hardware, software, oregon different services to companies engaged successful bitcoin mining." WGMI consists of 21 holdings and manages $147.2 cardinal successful full assets.
In contrast, metals ETFs person been the apical performers of 2025, according to justETF. Several golden mining ETFs fertile successful the apical five, with the Equity World Basic Materials DAXglobal Gold Miners ETF up 38% year-to-date.
Bitcoin miners person faced important challenges this year, arsenic the web hash rate—representing the computational powerfulness required to excavation bitcoin—continues to climb, hovering adjacent all-time highs astir 832 EH/s. This has created a notable divergence betwixt bitcoin’s terms and the hash rate.
As a result, mining trouble has besides remained adjacent to its peak, making it harder for miners to successfully excavation caller bitcoins. At the aforesaid time, transaction fees are highly low, further squeezing miner profitability arsenic rewards from processing transactions stay minimal.
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