STCE: A Bitcoin Mining ETF Masquerading As A 'Crypto Fund'
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Mike Fay6.43K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe Schwab Crypto Thematic ETF is heavily concentrated in Bitcoin mining stocks, diverging from its stated broad crypto exposure objective.STCE's construction methodology allows inclusion of companies with minimal or no true crypto or blockchain exposure, undermining thematic purity.Over 60% of STCE's assets are allocated to Bitcoin miners, whose long-term profitability is structurally challenged by declining mining rewards.I do not recommend STCE as currently constructed, citing poor alignment with the crypto theme and excessive mining exposure. asbe/iStock via Getty Images With the increasing acceptance of digital assets on Wall Street and among the broader investment community, there has been an increase in ETF products aimed at providing investors exposure to 'crypto,' 'blockchain,' and the businesses that benefit from suchThis article was written byMike Fay6.43K FollowersFollowFormer media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD, COIN, XYZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I'm not an investment advisor.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You