WGMI: Not Your Average Bitcoin Strategy

Advisors with clients interested in bitcoin investing but leery of direct exposure risk should consider the CoinShares Valkyrie Bitcoin Miners ETF (WGMI). The fund’s strategy creates lower correlation opportunities within equities while benefiting from growing bitcoin demand.

As equities flounder and bond yields rise to start September trading, alternatives appear increasingly attractive. While broad equity indexes plummeted on a fresh wave of tariff uncertainty, bitcoin prices rose. With growing foundational demand from institutional investors and ongoing macroeconomic volatility, the bitcoin economy warrants consideration in the second half.

For investors interested in crypto investing but concerned about direct cryptocurrency exposure, WGMI offers opportunities. The fund provides pure-play exposure to bitcoin miner companies in North America, providing the familiarity of equity exposures. Bitcoin miners may be a treasure trove of overlooked potential in an environment of increasing crypto adoption and regulatory tailwinds.

See also: Bloomberg’s Balchunas: The Marriage of Crypto & ETFs

WGMI provides diversification potential across a range of exposures. For those investors with existing crypto investments, the fund’s equity focus brings differentiated performance potential. And investors wanting to expand their equity portfolio’s diversification can harness growing bitcoin demand without direct exposure.

“In delivering exposure to a specialized, and otherwise underrepresented sector, WGMI may also complement broader blockchain ETFs or serve as a focused allocation for those seeking to diversify away from traditional financial or technology-heavy portfolios,” CoinShares explained in a recent paper.

WGMI invests in those companies earning at least half their profits or revenue from bitcoin mining. The fund invests in companies providing hardware, software, or services to bitcoin mining companies. Additionally, the strategy seeks companies that manufacture specialized chips used in bitcoin mining. WGMI does not invest in bitcoin.

“With a lower correlation to bitcoin than some peers (e.g., those holding MicroStrategy), WGMI is subject to unique fundamentals such as energy costs and block rewards that influence sector profitability, similar to how gold miners differ from gold,” said CoinShares.

The fund is managed by a team of industry experts on both cryptocurrencies as well as the finance sector. The portfolio is built using the fund manager’s expertise of the technical, operational, and commercial workings of the bitcoin mining industry. It contains familiar names such as Nvidia as well as established bitcoin mining companies like Riot Platforms and Hut 8 Corp.

WGMI carries an expense ratio of 0.75%.

For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.

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