BITQ - BITQ: Miner Concentration Problem

2024-05-23 09:03:47 ET

Summary

• Bitcoin and Ethereum have seen significant rallies this year, while many crypto-adjacent stocks have languished.
• Investors may be interested in the Bitwise Crypto Industry Innovators ETF as a way to gain long-term exposure to equities benefiting from crypto price increases.
• In my view, the fund may be too reliant on Bitcoin mining stocks - which I view as generally poor long-term investments.

To this point, cryptocurrency returns in 2024 have been of the vertical variety. Year to date, Bitcoin ( BTC-USD ) and Ethereum ( ETH-USD ) have each rallied by 65%. Some of the altcoins have enjoyed even stronger rallies. When the coins move like this, speculators often try to get exposure through the equity market. Many companies tied to cryptocurrencies have indeed enjoyed magnificent returns in recent weeks and months....

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