This ETF Gives You a Bitcoin Pick-And-Shovel Play

Dear Subscriber,

Bitcoin (BTC, “A”) has been on a tear!

From its halving this past April, it soared from $64,994 to $94,300 at the time of writing. That’s a 44% gain in just a few months!

If history is any guide, this rally could be just the beginning. Bitcoin’s halving is when mining rewards are cut in half.

And they have consistently set the stage for dramatic price surges within 12 to 18 months.

If you are interested in Bitcoin at all, you’ll want to ride this wave.

Of course, you can always go to any centralized exchange to load up on BTC. Or most decentralized exchanges, for that matter.

But opportunities are opening for investors who want exposure to crypto … without fully diving in.

Earlier this year, the spot Bitcoin ETFs were approved and listed. For the first time, TradFi investors and institutions could benefit from the crypto market.

But there’s another way to ride this wave without the headaches of managing cryptocurrency directly. And it comes with the benefit of being a pick-and-shovel play.

That’s because the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) holds the top Bitcoin mining companies that power Bitcoin’s ecosystem.

As such, it acts as a gateway to what could be a historic crypto rally in 2025.

But before we dive into WGMI, I need first to explain…

Why Bitcoin Miners Are the Backbone of the Market

At the heart of the Bitcoin network are miners.

These are the specialized companies that validate transactions and secure the blockchain by solving complex computational puzzles. This process is called proof-of-work, and miners are rewarded with Bitcoin for their efforts.

When the 2024 halving cut rewards from 6.25 BTC to 3.125 BTC per block, it effectively reduced the supply of new Bitcoin entering the market.

And there are three key reasons this is a big deal.

First are the supply and demand dynamics a halving creates. Fewer rewards mean a tighter Bitcoin supply. When demand stays steady or increases, the price historically rises.

Second is the boost miners get in the resulting rally. A higher Bitcoin price can translate to big profits for miners without significantly raising their operating costs.

And third is how it forces the industry to evolve. Halving events often push out less efficient players. What’s left are stronger, more innovative miners taking the lead.

The miners that are left after a halving are the ones that handle all the transactions that take place once the rally kicks in.

And it’s to companies like this that WGMI gives holders exposure.

WGMI Stands Out

This ETF doesn’t just offer a wider audience a chance to invest in the companies that make Bitcoin possible.

Its diversified portfolio spreads your investment across a mix of industry leaders and promising upstarts. This reduces the risk inherent when betting on a single company.

You’re getting a basket of the best miners in the business, which means less stress for you as an investor.

It also acts as a leveraged play on Bitcoin. That’s because, as miners, these companies often see their profits grow faster than Bitcoin’s price.

If Bitcoin rises 10%, miners can sometimes see 15%-20% gains because of their operational leverage.

Since the low, WGMI is up 107%. Remember, over that same time, Bitcoin is up only 44%.

That’s the power of a pick-and-shovel play!

And, as my colleague Juan Villaverde said last Friday, there is plenty of upside still ahead for Bitcoin. Which means more for the companies held in WGMI.

But the biggest benefit is its simplicity.

Let’s face it: Navigating the complexities of cryptocurrency can be daunting, even if you’ve been in crypto for a while.

For investors who are less comfortable with the idea of managing their own assets or not as computer savvy, it can feel impossible.

But WGMI gives you an easy, no-fuss way to invest in the sector … without the need to understand mining rigs, hash rates or blockchain intricacies.

And when we dive into the numbers, things look even more promising.

That’s because WGMI’s technical indicators are signaling a potential breakout.

You can see for yourself the bullish chart pattern below.

WGMI’s recent gains and a steady upward trendline suggest growing investor confidence.

The pattern above — called a harmonic pattern — reveals something else, as well. It suggests a cycle top near $46.80 for WGMI.

That’s roughly 70% higher than its current trading price near $26!

Its next resistance level sits near $30.51. Breaking past that could kick off a strong rally.

WGMI’s outlook seems even more promising when you consider that …

2025 Could Be a Banner Year for Bitcoin Miners

As I mentioned earlier, we should start to see the full impact of the halving in the coming months. In fact, we are already starting to see …

Operational Upgrades: The big names in Bitcoin mining aren’t just surviving — they’re thriving!

Many have invested in cutting-edge hardware and shifted to renewable energy sources to help them slash costs and appeal to environmentally conscious investors.

Building off that has been the market’s strong response to President-Elect Donald Trump’s win on Nov. 5. And with his pro-crypto administration moving into the White House in January 2025, analysts and investors are hopeful it’ll usher in a new era of crypto regulation.

That could be a boon to the broad market. The hope of regulatory clarity and a less hostile environment around crypto will likely lead to more institutional interest.

(We saw this play out with the Bitcoin and Ethereum (ETH, “A-”) spot ETFs earlier this year.)

This influx of capital could drive valuations higher across the mining sector, which tends to do well in situations where tightening supply meets steady demand.

That means WGMI is ideal for investors who believe in Bitcoin’s long-term potential but want a more straightforward, diversified way to gain exposure.

Bitcoin miners are gearing up for what could be a game-changing year. And by focusing on the best and brightest in the mining sector, WGMI simplifies crypto investing while maximizing your exposure to Bitcoin’s growth.

If you’ve been hesitant to enter the crypto market until now, you may want to consider this TradFi path to getting pick-and-shovel exposure to the No. 1 crypto.

As always, you should ensure any investment aligns with your goals and risk tolerance. And you should never invest more than you can afford to lose.

But if you’re bullish on Bitcoin and its mining ecosystem, WGMI could be your ticket to tapping into 2025’s potential boom.

Best,

Mark Gough

P.S. If you are already in the crypto market or are eager to get started with more direct exposure, I suggest you check out my colleague Juan Villaverde’s latest briefing.

In it, he explains what his Crypto Timing Model — which accurately called Nov. 5 as a key date for Bitcoin weeks in advance — sees in store for the market over the coming months.

And he reveals the name of one altcoin he believes can outperform the No. 1 crypto this cycle.