RIGZ, the new crypto mining & semiconductor ETF: a B-Word Event Beneficiary or New Celebrity Kid on the Block?

The ETF world was enriched by a new valuable entrant. For many private investors participation in the crypto industry offers unique opportunities and deeper diversifications, albeit representing numerous challenges and well known difficulties. They are accustomed to picking only those securities listed in the bigger, most well-known, stock exchanges. Until recently, the preferred way of obtaining exposure to Bitcoin investments was either via the Grayscale Bitcoin Trust (GBTC), or by buying the crypto related stocks like Square (SQ) or Coinbase International (COIN).

On Tuesday, newcomer Viridi Funds announced its novel ETF called Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (traded under ticker RIGZ), which offers exposure to cryptocurrency that is environmentally sustainable. For investors unaware of RIGZ, it's an actively managed exchange traded fund that trades on the NYSE and comprises 20 securities holdings while unveiling an acceptable expense ratio of 0.90%. There is the following info in the complete fact sheet on RIGZ:

“Viridi believes that investing in Bitcoin mining is an excellent solution for the investors looking for exposure to crypto assets through the lens of environmental sustainability and active leadership”. Since over half of Bitcoin mining in North America is believed to be conducted via renewable energy sources, Viridi hopes to promote this sector with prepackaged products like RIGZ.

Wes Fulford, Viridi Funds’ CEO, particularly said: "Bitcoin and cryptocurrencies continue to grow in importance, and we are witnessing a new wave of institutional support for this emerging asset class. We launched RIGZ to provide investors with an ETF that attempts to align purpose and profit by investing in the infrastructure that underpins the entire ecosystem with sustainability in mind.”

The ETF was the top-performing exchange traded fund yesterday, closing almost +10% and +14.2% over its first two trading days. Now the main question is whether the registered success owes entirely to yesterday's "B Word" event that provided crypto advocates with the support that the venue will be here into the future, or RIGZ is valuable on its own as a new kid on the block. Whatever the answer is, ARK Investment’s Cathie Wood stated that her "focus on disruptive innovations" is insatiable, and that fact is the single biggest reason her firm is attracted to Bitcoin and cryptocurrencies in general.

All in all, RIGZ, which provides market participants with exposure to the cryptocurrency mining industry and indirect exposure to crypto-assets – first and foremost, Bitcoin (BTCUSD), as well as its highly visible peer Ethereum (ETHUSD) – was launched at a perfect time with Bitcoin being on the verge of setting up a new bullish upsurge from its epic $30K, so far appearing unbreakable, support level.

As we mentioned, the "B Word" event secured further fueling for RIGZ records. As of today’s European afternoon, Bitcoin is +7.90% and trading at $32,225, while Ethereum is +11.08% and trading at $2,010.