5 Top-Performing Stocks of the Top ETF of 1H
Valkyrie Bitcoin Miners ETF WGMI, which provides exposure to the bitcoin mining industry, has gained more than 185% so far this year, becoming the top-performing ETF of first-half 2023.
Bitcoin, the world's largest cryptocurrency, recently hit a one-year high, surpassing the $31,000 mark, thus shrugging off the economic uncertainty and regulatory crackdown woes on some crypto exchanges. Although most of the stocks in WGMI’s portfolio delivered strong returns in the first half, a few have more than doubled. These include Bit Digital BTBT, Hut 8 Mining Corp. HUT, HIVE Blockchain Technologies Ltd. HIVE, Marathon Digital Holdings MARA and Argo Blockchain ARBK.
A wave of optimism from institutional investors has led to the surge in the cryptocurrency. This optimism was sparked by a few key factors:
High Profile ETF Application: BlackRock, the world's largest asset manager, recently applied to the U.S. Securities and Exchange Commission for a Bitcoin ETF, although this application awaits approval. This move likely signaled that large institutional players were showing an increased interest in Bitcoin (read: Why BlackRock ETF Filing Sent Bitcoin Surging).
Launch of a New Crypto Exchange: The launch of EDX Markets, a new digital asset exchange backed by major Wall Street players such as Fidelity, Charles Schwab and Citadel Securities, probably contributed to the sentiment that the infrastructure and acceptance of digital assets were improving, thus sparking more interest in Bitcoin.
Changing Sentiment Among Institutional Investors: Previously, institutional investors were quickly pulling cash out of products due to regulatory concerns. However, the sentiment appears to be shifting, which may have led to increased interest and investment in Bitcoin.
The solid trend in bitcoin is likely to continue due to the seasonal surge. The world's largest cryptocurrency tends to rally during the month of July, crypto-services provider Matrixport said in a report.
Let’s take a closer look at the fundamentals of WGMI.
WGMI in Focus
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 22 stocks in its basket with a double-digit concentration on the top two firms (read: 5 ETFs Harnessing the Power of the Bitcoin Surge).
Valkyrie Bitcoin Miners ETF has amassed $11.5 million in its asset base while trading in an average daily volume of 78,000 shares. It charges 75 bps in annual fees.
Best-Performing Stocks of WGMI
Bit Digital is an emerging bitcoin mining company. It has an estimated earnings growth rate of 75.4% for this year.
Bit Digital skyrocketed 61.4% in the first half and makes up for a 9.8% share in the WGMI basket. The stock has a Zacks Rank #3 (Hold) and a Growth Score of A.
Hut 8 Mining is a focused digital asset miner. The stock has soared 55.3% so far this year and accounts for a 5.6% share in the ETF. HUT has an estimated earnings growth of 50% for this year and has a market cap of $655 million.
Hut 8 Mining has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
HIVE Blockchain operates as a cryptocurrency mining firm. The company validates transactions on blockchain networks, as well as provides crypto mining and builds bridges between crypto and traditional capital markets. HIVE Blockchain rallied 49.2% in the first half of 2023 and makes up for 10.1% in the WGMI portfolio.
HIVE Blockchain has an estimated earnings growth rate of 76.3% for the fiscal year ending March 2024 and a Zacks Rank #2 (Buy). It has a solid VGM Score of B.
Marathon Digital is a digital asset technology company, which mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. The stock jumped 47.4% and accounts for an 11.4% share in the ETF.
Marathon Digital has an estimated earnings growth rate of 113.7% for this year and carries a Zacks Rank #3. It has a Momentum Score of B (read: After a Super 1H23, Crypto ETFs Likely to Rule in 2H?).
Argo Blockchain provides sustainable blockchain infrastructure and cryptocurrency mining. The stock rose 33.9% in the first half. It accounts for a 3.5% share in the ETF.
Argo Blockchain has an estimated earnings growth rate of 87% for this year and a Zacks Rank #3.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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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
Hut 8 Mining Corp. (HUT) : Free Stock Analysis Report
Argo Blockchain PLC Sponsored ADR (ARBK) : Free Stock Analysis Report
Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports
