Bitcoin ETF Gains in January: 5 Best Stocks

[ad_1]

Valkyrie Bitcoin Miners ETF WGMI, which provides exposure to the bitcoin mining industry, more than doubled in the first month of 2023 and became the best performing ETF in January.

The rally was fueled by bets that the Fed will soon end its inflation-fighting campaign as inflation cools. This pushed bitcoin, the largest digital currency by market value, higher. In fact, bitcoin is racing ahead this year, jumping 40% after its second-worst annual performance in 2022 when it crashed 64% (read: Why Bitcoin and Crypto ETFs Are Rising).

While most stocks in WGMI’s portfolio generated strong returns in the first month, a few more than doubled. These include Greenidge Generation Holdings GREE, Cipher Mining Technologies Inc. CIFR, Bit Digital BTBT, HIVE Blockchain Technologies Ltd. HIVE and Marathon Digital Holdings MARA.

Consumer prices fell unexpectedly for the first time in more than two and a half years in December. The consumer price index fell 0.1% in December after gaining 0.1% in November. It rose 6.5% year-over-year in December, down from a 7.1% year-over-year increase in November and a recent high of 9.1 % in June. Annual inflation growth was the weakest since October 2021. So-called core inflation, which excludes volatile components such as food and energy prices, rose 5.7% from the level of a year ago after a 6% increase in November.

With inflation now showing signs of easing in the United States, some market participants are hopeful that central banks will begin to slow the pace of rate hikes, or even cut rates significantly. According to the CEO of crypto data site CryptoCompare, Fed tightening appears to be milder and inflation less risky.

The Federal Reserve is expected to slow the pace of interest rate hikes this year amid signs of slowing inflation. According to a Reuters poll, the central bank will end its tightening cycle after a 25 basis point hike in each of its next two policy meetings, then likely keep interest rates stable for at least the rest of the month. year.

Let’s take a closer look at the fundamentals of WGMI.

WGMI in a nutshell

Valkyrie Bitcoin Miners ETF is an actively managed ETF that will invest at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenue or profit from mining operations of bitcoins and/or to provide chips, specialized hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 24 stocks in its basket with a double-digit focus on the best company (read: 5 best market-beating ETF areas to start 2023).

Valkyrie Bitcoin Miners ETF has amassed $4 million in its asset base while trading an average daily volume of 13,000 shares. It charges 75 basis points in annual fees.

WGMI’s Top Performing Stocks

Greenidge Generation is a vertically integrated mining and power generation company. It has an estimated earnings growth of 99.4% for this year and has a market capitalization of $37.7 million. The stock represents a 4.6% share in the WGMI basket and has soared 203.3% this year.

Greenidge Generation carries a Zacks Rank #3 (Hold) and a VGM Score of B. You can see the full list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Cipher Mining is an industrial-scale bitcoin mining company. The stock has climbed 162.5% so far this year and represents a 5.1% share in the ETF.

Cipher Mining has posted a surprise profit of 14.29% over the past four quarters. He has a Zacks rank of No. 3.

Bit Digital is an emerging bitcoin mining company. Its earnings growth rate is estimated at 29.4% for this year.

Bit Digital jumped 143.3% in January and represents a 5.6% share in the WGMI basket. The stock has a Zacks rank of #3 and a growth score of A.

HIVE Blockchain operates as a cryptocurrency mining company. The company validates transactions on blockchain networks, provides crypto mining, and builds bridges between crypto and traditional capital markets. HIVE Blockchain is up 136.8% in the first month of 2023 and represents 7.9% in the WGMI portfolio (read: Cryptocurrency ETFs gained in Nasdaq’s best week since November).

HIVE Blockchain has generated a surprise profit of 21.25% over the past four quarters and has a Zacks rank of No. 4 (sell).

Marathon Digital is a digital asset technology company, mining cryptocurrencies, focusing on the blockchain ecosystem and digital asset generation. The stock jumped 134.5% and represents a 7.7% share in the ETF.

Marathon Digital has an estimated earnings growth rate of 120.2% for this year and carries a No. 3 Zacks rank.

Want key ETF information delivered straight to your inbox?

Zacks’ free fund newsletter will update you weekly on top news and analysis, as well as the top performing ETFs.

Get it for free >>

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

HIVE Blockchain Technologies Ltd. (HIVE): Free Stock Analysis Report

Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report

Bit Digital, Inc. (BTBT): Free Stock Analysis Report

Cipher Mining Inc. (CIFR): Free Stock Analysis Report

Greenidge Generation Holdings Inc. (GREE): Free Stock Analysis Report

ETF Valkyrie Bitcoin Miners (WGMI): ETF Research Reports

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

[ad_2]