Bitcoin Miners ETF

The Valkyrie Bitcoin Miners exchange-traded fund (ETF) has been categorized as the best-performing fund of 2023. In January alone, this ETF has reported an over 100% gain, which is 25% higher than the second-best performing asset among US equity funds.

Valkyrie Bitcoin Miners ETF is 2023’s best-performing fund

Bitcoin was recently ranked as the best-performing asset of 2023 in a report by Goldman Sachs. The coin has gained by 39% over the past month. After the demise of FTX, Bitcoin suffered a major blow, with the price falling below $16K. However, the coin has since recovered and is now trading at around $23,000.

The gains made by Bitcoin are not the only ones making headlines, as a recent Bloomberg report has classified the Valkyrie Bitcoin Miners ETF (WGMI) as the best-performing US equity fund in 2023. WGMI is up by more than 100% this month alone, after a notable plunge in 2022, where it lost over 80% of its value.

The WGMI fund comprises some of the largest mining companies such as Bitfarms, Digihost Technology, Hive Blockchain Technologies, Marathon Digital Holdings, and Riot Platforms. Since the beginning of the year, these mining companies have reported notable gains amid a recovery across the broader cryptocurrency market.

The gains made by Bitcoin are triggering gains for underlying stocks. The director of ETFs at WallachBeth Capital, Mohit Bajaj, also explained that most of these Bitcoin-focused funds generally have low trading volumes, and an increase in the buying pressure is bound to trigger price gains.

The gains made by ETFs tracking crypto firms are significant, given that these funds reported significant losses in 2022. The resurging optimism since the start of 2023 and the fear of missing out (FOMO) have seen some crypto holdings rally higher.

WGMI is not the only crypto fund that has made significant gains this year. Other funds such as the Bitwise Crypto Industry Innovators ETF (BITQ), the Global X Blockchain ETF (BKCH), the VanEck Digital Assets Mining ETF (DAM), and the VanEck Digital Transformation ETF (DAPP) have posted significant rallies and are up by around 60%.

Bitcoin is the best-performing asset of 2023

Despite the notable declines suffered by the cryptocurrency market in 2022, traders have turned bullish, with gains across the market raising the total market capitalization to above $1 trillion.

A recent year-to-date asset return report by Goldman Sachs has ranked Bitcoin as the best-performing asset globally in 2023. The report noted that Bitcoin had performed better compared to other assets such as real estate, S&P 500, gold and Nasdaq 100. Goldman Sachs first included Bitcoin in its earnings report in early 2021.

Despite the gains being made across the market, there are concerns over whether this uptrend will be sustained. There are still concerns about the Fed’s decision regarding interest rates at the end of this month. If the Fed’s decision points towards easing interest rates, Bitcoin will be set for a bold recovery.


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