Bitcoin Miners ETF Leaves MicroStrategy in the Dust

The CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) has outperformed bitcoin this year, despite its decline. The fund is up 47.58% year to date through July 6, compared to a 27% drop in the price of bitcoin.

WGMI's success is due to its focus on companies that mine and supply miners with chips, hardware, software, and services, rather than simply holding bitcoin as a treasury asset like MicroStrategy (NASDAQ:MSTR). The fund invests at least 80% of its net assets in companies that derive at least 50% of their revenue or profits from bitcoin mining operations.

MicroStrategy's exclusion is by design, and it has paid off. MSTR is down 34% year to date and 75% over the past year, largely due to a $14.5 billion unrealized loss on its bitcoin holdings under new fair-value accounting rules.