ETF Fiasco: CoinShares’ Bitcoin Mining Fund Takes the Cake ๐Ÿฐ

Oh, the Misfortunes! ๐Ÿ€

  • The Valkyrie Bitcoin Mining ETF (WGMI) sinks lower than the deepest abyss, plummeting 43% year-to-date. ๐Ÿ˜ฑ
  • Top holding IREN, with a 15% weight in the fund, has tumbled over 40% YTD, dragging the ETF’s performance into the depths of despair. ๐Ÿ˜ฃ
  • While WGMI weeps, metal ETFs celebrate, with gold mining funds shining bright in the top five performers of 2025. ๐Ÿ’Ž

In a year where misfortune seems to stalk every corner, CoinShares’ Valkyrie Bitcoin Mining (WGMI) ETF emerges as the black sheep of the family, down a staggering 43% year-to-date, as reported by Senior Bloomberg ETF analyst Eric Balchunas. ๐Ÿ‘

This ETF, composed of bitcoin (BTC) miners, has seen its fair share of heartache. IREN (IREN), the largest holding, has lost a whopping 42%, while Core Scientific (CORZ) and Cipher Mining (CIFR) follow closely behind with declines of 48% and 52%, respectively. Even NVIDIA (NVDA), the tech giant, hasn’t escaped unscathed, dropping over 20%. ๐Ÿ˜ฅ

Its investment strategy, once promising, now reads like a cautionary tale: “The ETF will invest in companies that derive at least 50% of their revenue or profits from bitcoin mining operations and/or from providing specialized chips, hardware, software, or other services to companies engaged in bitcoin mining.” WGMI, with 21 holdings and $147.2 million in total assets, stands as a monument to what could have been. ๐Ÿ“œ

Contrastingly, metals ETFs have basked in the glory of success, with gold mining ETFs leading the charge, up 38% year-to-date. It’s a tale of two cities, one of gold and one of… well, let’s just say something less precious. ๐Ÿ’ฐ

Bitcoin miners have battled against insurmountable odds this year, with the network hash rate soaring to dizzying heights, reaching nearly 832 EH/s. This has led to a tragic divergence between bitcoin’s price and the hash rate. ๐Ÿ“ˆ๐Ÿ“‰

Mining difficulty, too, has remained at its peak, making it nigh impossible for miners to unearth new bitcoins. And if that weren’t enough, transaction fees have been as low as a mouse’s whisper, further squeezing miner profitability. ๐Ÿญ

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2025-03-31 13:55