Skip to content
October 10, 2025Seeking Alpha logoSeeking Alpha

BITQ: Strong Momentum For Crypto Names Into The Year End

Summary Bitwise Crypto Industry Innovators ETF offers high-beta, equity-based exposure to the crypto economy, focusing on miners, trading, and infrastructure. BITQ's holdings are predominantly mid-cap companies, with top names like IREN, MARA, and RIOT, many showing volatile earnings and high P/E ￰0￱ ETF is highly cyclical, with extreme drawdowns in risk-off years and outsized gains in risk-on periods, making it unsuitable for buy-and-hold ￰1￱ is rated 'Buy' for momentum into year-end 2025, but investors should time entry and exit carefully due to its high ￰2￱ Similar to gold miners rallying in 2025, bitcoin miners are having an astounding year as the currency ￰3￱ Crypto Industry Innovators ETF ( BITQ ) is an equities exchange-traded fund that provides focused exposure to the crypto economy without the complications of holding crypto assets ￰4￱ ETF holds a mix of crypto miners, crypto trading platforms, asset management platforms, and infrastructure ￰5￱ ETF is market weighted and contains 30 ￰6￱ per its fact sheet, most of its holdings are mid-cap companies, which make up 56% of the holdings.

Large-caps are 25%, while mega-caps represent 16%. The article will explore some of the holdings in detail, and outline why this ETF is a good momentum play given its very high beta and cyclical ￰7￱ - only equities, no outright cryptocurrencies The fund segregates its holdings in larger sub-sectors: Mining: 37% Trading & Custody: 35% Treasury Holdings: 15% Asset management: 7.5% Infrastructure: 5.5% Let us have a look at the top names in the ETF: Top 10 Holdings (Fund Website) The top ten names make up over 63% of the fund, and they represent well-known names in the ￰8￱ us have a closer look at some of them: 1) IREN Ltd ( IREN ): IREN is an Australia-based company that owns and operates data centers powered by 100% renewable energy for high-performance computing (HPC) ￰9￱ company has positive earnings, a forward EPS of 0.98, and a 61x P/E ￰10￱ name trades at 8x book value, but its forward earnings projections are muddled as per Seeking Alpha (i.

e. does not show a clear upwards trajectory). As per Seeking Alpha, the average price target as per Wall St analysts is $48 per share. 2) MARA Holdings ( MARA ): Mara is an American digital asset technology and cryptocurrency mining ￰11￱ name has several business segments: bitcoin mining, digital asset treasury, and energy and ￰12￱ terms of bitcoin mining, MARA operates specialized computers to validate transactions on the Bitcoin blockchain and earn ￰13￱ the higher the price of Bitcoin, the higher the NAV for ￰14￱ treasury side involves holding strategic Bitcoin reserves for long term ￰15￱ company has positive earnings, a forward EPS of 0.48, and a 41x P/E ￰16￱ name trades at 1.5x book value, and its forward earnings projections are also muddled with negative EPS projected for the ￰17￱ average price target as per Wall St analysts is $23 per share. 3) Riot Platforms ( RIOT ): Riot is a publicly traded, vertically integrated Bitcoin mining company and infrastructure ￰18￱ name operates several business segments, including Bitcoin mining, treasury services, and an AI computing ￰19￱ company has negative earnings estimates for both 2025 and 2026, although it has posted quarters of positive earnings in the ￰20￱ operating income until 2024 has always been ￰21￱ company trades at 2.4x book value, and the average price target per Wall St analysts is $21 per share. 4) Bitdeer Technologies Group ( BTDR ): Although not in the top 10, the fund does hold a 2% allocation to ￰22￱ is a global technology company focused on providing a comprehensive suite of computing solutions for the blockchain and high-performance computing ￰23￱ operates several segments, such as bitcoin mining, cloud hash rate, and ￰24￱ company has negative earnings estimates for 2025, but a 0.91 EPS estimate for 2026.

Furthermore, EPS is seen doubling in ￰25￱ name trades at 6x book value, and the average Wall ￰26￱ is $25/share. A very cyclical ETF Let us start by looking at some of the fund's analytics: AUM: $0.5 billion Expense ratio: 0.85% St deviation (3Y): 67% Beta: 2.08 As we can see this name is not for the faint of heart, with a 67% standard deviation, and a drawdown profile that looks like this: Drawdown profile (PortfolioVisualizer) Yes, you are reading the above chart correctly, where you see the ETF with a -90% drawdown in late ￰27￱ has not yet recovered its entire drawdown since inception, but the performance this year has been spectacular, with the fund up +71%.

The performance per year is as follows as per Morningstar: 2022: -83% 2023: +246% 2024: +47% YTD: +71% We can see the pattern here, with risk-off years having massive drawdowns, while risk-on years see substantial ￰28￱ ETF is not a buy and hold in our view, but a cyclical play after a ￰29￱ can also compare the ETF versus the bitcoin performance for the respective years: 2022: -64% 2023: +156% 2024: +121% YTD: +31% When we compare the two sets of data, we can see BITQ is a high-beta play on bitcoin, with larger drawdowns but also much larger positive recoveries. A momentum play into the year end As we have articulated above, BITQ is not a buy and hold, but a cyclical momentum ￰30￱ has been very attractive in 2025 given deficit concerns in the ￰31￱ the dollar depreciation.

A strong bitcoin has percolated into the crypto universe, with ample moves for the miners and infrastructure ￰32￱ is exhibiting strong momentum as per Seeking Alpha, with an A+ momentum grade and a 'Strong Buy' quant ￰33￱ current government shutdown has also put upward momentum on crypto, with investors moving to an asset class that is not affected by bipartisan ￰34￱ are of the opinion that the crypto universe will continue to deliver for the rest of 2025, with strong momentum and a high ￰35￱ be careful with BITQ by picking an entry and exit ￰36￱ is not an ETF you want to hold long ￰37￱ opinion is around strong momentum into December; thus, the penciled exit point is at the end of ￰38￱ BITQ is an equities ￰39￱ fund aggregates crypto miners, crypto trading platforms and crypto infrastructure ￰40￱ underlying holdings have negative EPS and very high P/E ratios, but are set to grow if bitcoin prices remain ￰41￱ fund is a high beta play on crypto prices and exhibits a high ￰42￱ like this ETF as a momentum play into the year end, but be mindful because BITQ is not a buy and hold by any means.

Seeking Alpha logo
Seeking Alpha

Latest news and analysis from Seeking Alpha

Analyst Says It’s Going to Be a Riot When XRP Starts Running to $10

Analyst Says It’s Going to Be a Riot When XRP Starts Running to $10

Analyst Zach Rector has raised concerns about XRP liquidity conditions, pointing out that the asset currently faces a 2.5% spread to sell while trading at $2.81. He sees an even more concerning figure...

The Crypto Basic logoThe Crypto Basic
1 min
Dogecoin Could Rally Toward $2.28 as Analysts Point to Historical Cycle Patterns

Dogecoin Could Rally Toward $2.28 as Analysts Point to Historical Cycle Patterns

Dogecoin price prediction: analysts say Dogecoin could enter a third parabolic cycle, with Fibonacci targets and cycle history pointing to a potential rally toward $2.28 or higher if buying pressure...

CoinOtag logoCoinOtag
1 min
Palladium Is Mooning: Here’s Why The Rally Will Continue

Palladium Is Mooning: Here’s Why The Rally Will Continue

For most people, palladium is a fairly obscure commodity investment. However, it currently surging – and not without good reason....

Forbes Digital Assets logoForbes Digital Assets
1 min