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Valkyrie is set to launch the Valkyrie Bitcoin Miners ETF (WGMI) on the Nasdaq on Tuesday, which will provide investors with exposure to the Bitcoin (BTC-USD) mining industry through an actively managed wrapper.
While the exchange traded fund will not invest directly in the crypto assets, it will provide market participants an opportunity to invest in companies that derive at least 50% of their revenue or profits from Bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.
WGMI has an expense ratio of 0.75%.
There are only 20 holdings in the fund. The top holdings are Bitfarms (NASDAQ:BITF) and Argo Blockchain (OTCQX:ARBKF), each weighted at 10%, and CleanSpark (NASDAQ:CLSK) weighted at 9%. The top 10 holdings account for 66% of the assets in the fund.
The other holdings, in order of current size, are: Hive Blockchain (NASDAQ:HIVE), Stronghold Digital Mining (NASDAQ:SDIG), Core Scientific (NASDAQ:CORZ), Marathon Digital (NASDAQ:MARA), Riot Blockchain (NASDAQ:RIOT), DMG Blockchain Solutions (OTCQB:DMGGF), Bit Digital (NASDAQ:BTBT), AMD (NASDAQ:AMD), Nvidia (NASDAQ:NVDA), Terawulf (NASDAQ:WULF), TSMC (NYSE:TSM), Digihost (NASDAQ:DGHI), Samsung Electronics (OTC:SSNLF), Hut 8 Mining (NASDAQ:HUT), Greenidge Generation Holdings (NASDAQ:GREE), Cipher Mining (NASDAQ:CIFR), and Canada Computation (BATS:SATO).
WGMI was slated to start trading Tuesday. It will trade alongside its sister ETF, the Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF), which invests primarily in Bitcoin futures contracts. Investors who follow the Valkyrie Bitcoin Strategy ETF also follow other bitcoin related ETFs.
Year-to-date price action: BTC-USD -5.1%, ARBKF -8.5%, BITF -17.8%, and CLSK -25.6%, BTF -6.3%.
In other related crypto news, KPMG in Canada, one of the big four accounting firms, allocated Bitcoin (BTC-USD) and Ethereum (ETH-USD) to its corporate treasury, marking its first investment in cryptos.