CoinShares’ Valkyrie Bitcoin Mining (WGMI) exchange-traded fund (ETF) is the worst-performing ETF of 2025, down 43% year-to-date, in accordance with Senior Bloomberg ETF analyst Eric Balchunas.
The ETF is made up of a number of publicly traded bitcoin (BTC) miners. IREN (IREN) is the most important holding at 15%, which is down 42%. Core Scientific (CORZ) follows with a 14% weighting and a 48% decline, whereas Cipher Mining (CIFR), the third-largest holding at 9.6%, is down 52%. Even NVIDIA (NVDA), the sixth-largest holding at 5%, has dropped over 20% this 12 months.
Based on its investment strategy, “The ETF will spend money on corporations that derive a minimum of 50% of their income or income from bitcoin mining operations and/or from offering specialised chips, {hardware}, software program, or different providers to corporations engaged in bitcoin mining.” WGMI consists of 21 holdings and manages $147.2 million in complete property.
In distinction, metals ETFs have been the highest performers of 2025, in accordance with justETF. A number of gold mining ETFs rank within the high 5, with the Fairness World Fundamental Supplies DAXglobal Gold Miners ETF up 38% year-to-date.
Bitcoin miners have confronted vital challenges this 12 months, because the community hash price—representing the computational energy required to mine bitcoin—continues to climb, hovering close to all-time highs round 832 EH/s. This has created a notable divergence between bitcoin’s worth and the hash price.
Consequently, mining problem has additionally remained near its peak, making it tougher for miners to efficiently mine new bitcoins. On the similar time, transaction charges are extraordinarily low, additional squeezing miner profitability as rewards from processing transactions stay minimal.
Add comment