It’s been a great start to the year 2023 for all Bitcoin investors as the world’s largest cryptocurrency appreciated by more than 33% this month. As of press time, BTC is trading above $23,000 backed by strong bullish momentum. Now, ETFs associated to Bitcoin are also showing strong performance.
Interestingly, the Valkyrie Bitcoin Miners ETF with a ticker of WGMI – We’re Gonna Make It – has surged by a staggering 100% this month making it the best-performing fund for this month. The WGMI ETF is leading by a strong 25 percentage points from its immediate next competitor from the US equity funds.
The Valkyrie Bitcoin Miners ETF includes mining companies such as Riot Blockchain, Digihost Technologies, Marathon digital Holdings, Bitfarms, and Hive Blockchain Technologies among its top holdings. After a brutal 2022, all of these companies are breathing fresh oxygen in January and have shot to the moon. Speaking to Bloomberg, Mohit Bajaj, director of ETFs at WallachBeth Capital said:
“Bitcoin is up 40% year to date, so that is boosting the demand for the underlying stocks”. Plus, many of those stocks are thinly-traded, “so when there is excess buying, it will cause some higher price deviations.”
As said, with a strong revival of Bitcoin and the overall crypto space, the ETF tracking companies linked to cryptocurrencies have witnessed a promising start. On the other hand, this rally has also provided much-needed relief to Bitcoin miners which have been facing severe operational challenges last year.
Other Crypto ETFs Also Perform Well
Apart from the WGMI Bitcoin Miners ETFs, other funds linked to digital assets have been also doing well this month. This includes the likes of the VanEck Digital Assets Mining ETF (DAM), the Bitwise Crypto Industry Innovators ETF (BITQ), the Global X Blockchain ETF (BKCH), and the VanEck Digital Transformation ETF (DAPP), all of which have jumped by over 60% this month.
The bigger question is that going further into 2023, will the crypto rally continue to sustain considering a tough macro environment. BTC is currently facing the next resistance at $25,000.
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