The sharp rise in the price of bitcoin also sent cryptocurrency and bitcoin ETFs skyrocketing, outperforming other US equity funds. It includes the shares of the market-leading mining companies and has jumped by one hundred percent.
The year 2023 is off to a great start for all bitcoin investors, as the number one cryptocurrency rose nearly 40 percent in dollar terms during the month. Namely, from 16,550 dollars to the present moment to 23,200, which is 40.1 percent, but recently it was almost 24 thousand. With the support of the strong bullish momentum, bitcoin-related ETFs are also showing strong performance – written by Coingape. (ETF: exchange-traded investment fund.)
The price of the bitcoin ETF went to the moon
The Valkyrie Bitcoin Miners ETF is up a staggering 100 percent this month (from around $4.50 to around $9). Thus, it was the best performing fund in the entire USA. (Interestingly, its stock ticker code is WGMI – We’re Gonna Make It – the text of a well-known meme.) The WGMI ETF has a strong lead of 25 percentage points compared to its immediately following competitor in the field of American equity funds.
The Valkyrie Bitcoin Miners ETF includes mining companies such as Riot Blockchain, Digihost Technologies, Marathon Digital Holdings, Bitfarms and Hive Blockchain Technologies among its equity investments. After a brutal 2022, these companies – following bitcoin miners were on the brink of bankruptcy – finally got a breath of fresh air in January and their share price skyrocketed (went to the moon).
Little supply, big price increase
Speaking to Bloomberg, Mohit Bajaj, head of ETFs at WallachBeth Capital, said that bitcoin’s 40 percent rise this year is driving demand for the underlying stocks as well. In addition, many of these stocks rarely trade (i.e. illiquid), so when there is greater demand and buyer pressure, it causes large price deviations.
On the other hand, this rally also brought much-needed relief to Bitcoin miners, who faced severe operational challenges last year.
Other crypto ETFs have also performed well
Apart from WGMI, other digital asset related funds also performed well this month. Examples include the VanEck Digital Assets Mining ETF ( DAM ), the Bitwise Crypto Industry Innovators ETF ( BITQ ), the Global X Blockchain ETF ( BKCH ), and the VanEck Digital Transformation ETF ( DAPP ), which all jumped more than 60 percent this week month.
The bigger question is whether the crypto market rally will last in 2023, given the tough macroeconomic environment. BTC is currently facing the next resistance at $25,000.
Our related articles:
The situation of miners has been so bad for a long time, many are giving up
In 2022 BTC miners sold everything they mined
This is the key to the survival of bitcoin miners in 2023
Inverz Cramer ETF was issued by an American consulting company
https://www.youtube.com/watch?v=videoseries
:quality(80)/cdn-kiosk-api.telegraaf.nl/2e08371a-c189-11ef-a269-12d34ffe7c36.jpg "Man Charged with Murder After Setting Woman on Fire in NYC Subway")
