Michaela
Grayscale Investments, the cryptocurrency asset manager, has introduced the Grayscale Bitcoin Miners ETF (MNRS) on NYSE Arca, offering investors a new way to invest in Bitcoin mining companies.
The company unveiled the MNRS on January 20. The fund targets companies listed on the Indxx Bitcoin Miners Index, which includes firms primarily generating revenue from Bitcoin mining, as well as related hardware, software, services, and other initiatives.
The ETF’s top ten holdings feature several leading Bitcoin mining firms, including Marathon Digital Holdings with a 16.6% allocation, Riot Platforms at 11.9%, and Core Scientific with 9.2%. These companies are key contributors to the security, decentralization, and transparency of the Bitcoin network.
Grayscale clarified that the MNRS will not directly invest in digital assets or derivatives. However, the fund could have indirect exposure to digital assets through its investments in Bitcoin mining companies.
The asset manager’s latest investment product reflects the company’s recognition of the vital role the Bitcoin mining industry plays in supporting the BTC network.
“The work of Bitcoin miners is integral to the existence and continuation of the Bitcoin network,” Grayscale stated, emphasizing that miners play a crucial role in maintaining the network’s security, integrity, and functionality.
Earlier this month, Grayscale updated the asset allocation of its Digital Large Cap Fund (GDLC), with Bitcoin (BTC) and Ethereum (ETH) now making up nearly 90% of the portfolio. According to the announcement, GDLC’s composition now includes 73.52% Bitcoin and 16.16% Ethereum. The remaining assets in the fund consist of XRP (5.05%), Solana (3.83%), and Cardano (1.44%).
Grayscale Experiences Billions in Outflows
Grayscale’s launch of the Bitcoin Miners ETF follows news that the Grayscale Bitcoin Trust (GBTC) has recorded $21 billion in outflows since its January 2024 launch, making it the only U.S. spot Bitcoin ETF to experience a net decline in investments.
According to data, the GBTC recorded average daily outflows of $89.9 million over the past 11 months. As of December 16, total outflows reached approximately $21.045 billion, with the trust continuing to see multimillion-dollar losses in investments on a daily basis.
Despite all 10 U.S. spot Bitcoin ETFs maintaining positive balance sheets, the significant outflows from the GBTC have outweighed the combined inflows of competing funds.
The Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, Valkyrie Bitcoin Fund, VanEck Bitcoin ETF, WisdomTree Bitcoin Fund, and Grayscale Bitcoin Mini Trust ETF have collectively attracted $20.737 billion in investments.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
