BLOK Outperforms Bitcoin This Year Amid Miner Shift to AI Data Centers

The Amplify Transformational Data Sharing ETF (BLOK) has outperformed Bitcoin this year, gaining 11.09% year-to-date while the cryptocurrency drops 29.36%. This is in stark contrast to spot Bitcoin ETFs, such as IBIT, which pass through the full decline of Bitcoin's price to investors.

BLOK holds approximately 54 positions in blockchain and crypto-related companies, with about 80% invested in operating businesses. Recent top holdings include Hut 8 and Cipher Mining, both of which have pivoted their hash-rate capacity toward AI data centers. This move has provided a tailwind for BLOK during Bitcoin's decline.

Michael Del Monte from Seeking Alpha called BLOK a 'higher-volatility vehicle strongly correlated to Bitcoin', best suited as a satellite holding with modest allocations within a broader, diversified portfolio. He noted that selling a spot Bitcoin ETF at a gain to rotate into BLOK triggers a capital gains event, which can erase much of the swap's value in a taxable account.

Investors who want pure price exposure can keep a core spot ETF and add BLOK as the equity-side sleeve. However, if Bitcoin reclaims its highs and resumes a vertical move, a spot ETF is likely to outrun BLOK since miners' costs and exchange fee compression cap the equity beta.