WGMI - Want to Buy a Bitcoin Mining Stock? Read This Before You Invest.
2023-09-28 08:21:00 ET
Bitcoin (CRYPTO: BTC) mining companies are some of the best-performing stocks of the year. Top Bitcoin miner Riot Platforms (NASDAQ: RIOT) is up a dizzying 172% year to date. Marathon Digital Holdings has gained 153%. And shares of eco-friendly Bitcoin miner CleanSpark is up by a head-turning 92%. So it's no surprise that investors are scooping up these mining stocks as a way to pump up their portfolio returns.
But there might be a better way to get access to the Bitcoin mining sector, and that's through an exchange-traded fund (ETF). The one ETF that I have in mind is the Valkyrie Bitcoin Miners ETF (NASDAQ: WGMI) . This specialized fund invests 80% of its net assets in companies that derive at least one-half of their revenue or profits from Bitcoin mining, or that provide specialized chips, hardware, software, and services to Bitcoin mining companies.
Instead of trying to choose a winner in the hyper-competitive Bitcoin mining sector, it could make sense to invest in an ETF that covers the broader Bitcoin mining market. That way, you get access to a wide range of Bitcoin miners without being overexposed to any particular stock. Moreover, you can gain access to the companies that are selling the "picks and shovels" to the Bitcoin miners without having to invest in them directly.
For further details see:
Want to Buy a Bitcoin Mining Stock? Read This Before You Invest.