The post-election Bitcoin (BTC-USD) rally has caught every investor’s attention. Bitcoin prices have zoomed over 124% so far this year, with most of the gains coming in the past month. Investors who seek to gain exposure to the lucrative Bitcoin world can try investing in crypto Exchange Traded Funds (ETFs). The Purpose Bitcoin ETF (TSE:BTCC) and the Valkyrie Bitcoin Miners ETF (WGMI) are two such Bitcoin-based ETFs that give us the benefit of low risk and high reward and can be considered for investing.
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Let’s look at the two ETFs in detail.
The Purpose Bitcoin ETF (TSE:BTCC)
The Purpose Bitcoin ETF claims to be the world’s first physically settled Bitcoin ETF. Under this ETF, Bitcoin is held in safe, offline storage called “cold” storage, as it is not actively connected to the internet.
As of date, BTCC has an AUM (assets under management) of C$961.28 million, holding roughly 25,298.39 Bitcoin. The expense ratio is 1%. Year-to-date, BTCC has returned 121.5% to investors, akin to the actual returns generated by Bitcoin.
Valkyrie Bitcoin Miners ETF (WGMI)
The Valkyrie Bitcoin Miners ETF is an actively managed fund that invests in equity securities of companies engaged in Bitcoin mining. WGMI was founded in July 2022 and has an expense ratio of 0.75%.
As of date, WGMI has an AUM of $224.29 million, with the top ten companies contributing 81.71% of the total portfolio. The top three companies include Core Scientific (CORZ), Iris Energy (IREN), and Cipher Mining (CIFR).
Overall, the WGMI ETF has a Strong Buy consensus rating. Of the 20 stocks held in the portfolio currently, 15 have Buys and five stocks have a Hold rating. Also, the average WGMI ETF price target of $40.34 implies 60.6% upside potential from current levels.
Concluding Thoughts
Investing in Bitcoin-based ETFs provides the benefits of direct access to the cryptocurrency along with tradeability and liquidity. Investors can consider the BTCC and WGMI ETFs to gain exposure to the rapidly evolving crypto world after thorough research.
