The Amplify Transformational Data Sharing ETF (BLOK) has been outperformed by the Valkyrie Bitcoin Miners ETF (WGMI) over the past year, with WGMI returning 111.45% compared to BLOK's 7.77% return.
This gap can be attributed to BLOK's diversification strategy, which holds a basket of 54 holdings across various blockchain sub-themes, including miners, exchanges, and enterprise adopters.
WGMI, on the other hand, focuses solely on publicly traded bitcoin miners, resulting in a more concentrated portfolio that has amplified the mining economics and hash price.
This concentration comes with its own set of risks, as WGMI dropped 16.55% over the last five sessions, while BLOK dropped only 1.71% during the same period.