The cryptocurrency landscape has been tumultuous in 2025, particularly for bitcoin mining investors. According to Senior Bloomberg ETF analyst Eric Balchunas, CoinShares’ Valkyrie Bitcoin Mining (WGMI) exchange-traded fund (ETF) has emerged as the worst performer of the year, plummeting 43% year-to-date. This ETF, which focuses on companies deriving at least half of their revenue from bitcoin mining or related services, highlights the ongoing struggles within the industry.
WGMI consists of 21 holdings with an asset management total of 7.2 million. Among these companies, IREN (IREN) holds the largest share at 15%, yet it has experienced a staggering 42% decline. Shortly after, Core Scientific (CORZ) accounts for 14% of the ETF but has seen an even sharper fall of 48%. The challenges extend to Cipher Mining (CIFR), which makes up a 9.6% portion of the fund and is down a striking 52%. Even tech giant NVIDIA (NVDA), with a 5% stake, has not evaded the downturn, facing over a 20% drop this year.
“The ETF will invest in companies that derive at least 50% of their revenue or profits from bitcoin mining operations and/or from providing specialized chips, hardware, software, or other services to companies engaged in bitcoin mining,” the fund’s investment strategy states.
In stark contrast to the struggles of bitcoin miners, metals ETFs have soared in performance this year. The Equity World Basic Materials DAXglobal Gold Miners ETF, for example, is up an impressive 38% year-to-date, underscoring a significant shift in investor interest. This divergence in performance comes as bitcoin miners grapple with a climbing network hash rate—which is currently near all-time highs of approximately 832 EH/s—putting tremendous pressure on profitability. The increased computational demands have made it significantly harder for miners to successfully mine new bitcoins, while transaction fees remain low, further squeezing revenues and adding to the woes of this once-viable investment avenue.
Performance of CoinShares’ Valkyrie Bitcoin Mining ETF in 2025
The following key points outline the significant performance and challenges faced by CoinShares’ Valkyrie Bitcoin Mining ETF (WGMI) in 2025, as well as comparisons with other investment options.
- Worst-Performing ETF: WGMI is currently the worst-performing ETF of 2025, down 43% year-to-date.
- Largest Holdings:
- IREN (IREN): Largest holding at 15%, down 42%.
- Core Scientific (CORZ): Second-largest holding at 14%, down 48%.
- Cipher Mining (CIFR): Third-largest holding at 9.6%, down 52%.
- NVIDIA (NVDA): Sixth-largest holding at 5%, down over 20%.
- Investment Strategy: The ETF targets companies generating at least 50% of their revenue from bitcoin mining or related services.
- Total Assets: WGMI manages 7.2 million in total assets with 21 holdings.
- Challenges for Bitcoin Miners:
- Network hash rate near all-time highs at 832 EH/s, increasing mining difficulty.
- Low transaction fees further squeezing miner profitability.
- Contrast with Metals ETFs: Metals ETFs, particularly gold mining ETFs, have emerged as top performers in 2025, with some up 38% year-to-date.
The divergence between bitcoin’s price and its network’s hash rate signifies a complex environment for investors in cryptocurrency mining, highlighting the need for careful consideration of investment strategies.
Analyzing the Downturn of CoinShares’ Valkyrie Bitcoin Mining ETF
The Bitcoin market has undoubtedly seen its ups and downs, but the performance of CoinShares’ Valkyrie Bitcoin Mining ETF (WGMI) clearly stands out in 2025 for all the wrong reasons. Declining by 43% year-to-date, this ETF has emerged as a glaring example of the challenges facing cryptocurrency investments today. In comparison, competitors in the metals market, particularly gold mining ETFs, have thrived, showcasing a stark contrast in performance amid a volatile economic backdrop.
Competitive Advantages: One of the defining features of WGMI is its targeted investment strategy, which focuses purely on companies deriving significant revenue from Bitcoin mining operations. This specificity could appeal to investors who are committed to the cryptocurrency sector and believe in its long-term potential. Moreover, as digital currencies continue to capture mainstream attention, there is significant opportunity for recovery and growth, provided market conditions improve. Additionally, with 7.2 million in total assets, WGMI still retains a substantial capital base compared to its competitors, allowing for potential scalability if conditions turn favorable.
Competitive Disadvantages: The glaring disadvantage, however, is WGMI’s dramatic decline, driven by market forces that have rendered Bitcoin mining increasingly challenging this year. The soaring hash rates have escalated mining difficulty, resulting in lesser profitability for miners, which directly impacts ETF performance. With major holdings like IREN and Core Scientific struggling significantly—down 42% and 48% respectively—the underlying assets are not just underperforming but also face existential threats in a rapidly evolving market. This aspect presents a fundamental risk that could deter investors seeking stability and growth.
While the Valkyrie ETF’s focus on Bitcoin positions it uniquely within a niche market, falling behind assets like metal ETFs could create problems for investors seeking diversification during market slumps. For instance, investors looking for safety and stability might feel pressured to pivot towards more traditional commodities like gold, which have demonstrated resilience through noteworthy gains. On the flip side, crypto enthusiasts might find opportunities in these setbacks—into undervalued assets or, possibly, in the hope of attracting renewed market interest.
In this context, while WGMI may offer potential for long-term believers in the Bitcoin mining sector, the immediate performance indicators suggest a more precarious scenario, warranting caution amongst both current and prospective investors.
