Grayscale Launches MNRS ETF for Bitcoin Mining Exposure

Highlights:

• Grayscale launched the MNRS ETF to invest in Bitcoin mining firms without direct Bitcoin ownership.
• Marathon, Riot, and Core Scientific make up a large part of the MNRS ETF index.
• Grayscale’s Bitcoin and Ether ETFs saw major outflows, but investor interest remains in crypto-related funds.

Grayscale has introduced the Bitcoin Miners ETF (MNRS) to provide investors with exposure to Bitcoin mining companies. The companies in the fund are those listed in the Indxx Bitcoin Miners Index. This fund targets companies that depend on the majority of their revenue in the Bitcoin mining business or are linked to businesses of Bitcoin mining services.

The companies included in the index provide services such as data center hosting, hardware manufacturing, and software support. Grayscale’s ETF does not directly invest in digital assets or derivatives. However, it provides an opportunity for investors who seek to gain exposure to the Bitcoin mining industry without owning Bitcoin itself.

Introducing the Grayscale Bitcoin Miners ETF (ticker: $MNRS) ⛏ $MNRS offers investors targeted, pure-play exposure to #Bitcoin Miners and the Bitcoin Mining Industry, available directly in your investment account.

Learn more about $MNRS: https://t.co/kCpi8yOYF1 pic.twitter.com/6z5Kctq2Xy

— Grayscale (@Grayscale) January 30, 2025

Key Players and Investment Strategy of MNRS ETF

The MNRS ETF tracks the Indxx Bitcoin Miners Index, which heavily weighs in a few key companies. The biggest share sits with Marathon Holdings at 16.65%, followed by Riot Platforms at 11.92% and Core Scientific at 9.2%. These three companies represent more than one-third of the entire index. Companies such as CleanSpark and Iren make up the remaining smaller portion.

The fund’s investment strategy is centered around these major players in the Bitcoin mining industry. These companies perform the critical task of validating Bitcoin transactions and securing the network. They use powerful computers to solve complex mathematical problems that support the network’s functioning. In return for their work, they are rewarded with newly minted Bitcoin.

Investors can gain exposure to these companies through the MNRS ETF in a rules-based, index-tracked investment strategy. This enables the fund to evolve with the rapidly changing industry. This ETF could appeal to investors looking to invest in the Bitcoin ecosystem but hesitating to invest directly in digital assets.

Grayscale’s ETFs See Major Fund Movements

The existing ETFs of the company have recorded significant fund movements following the MNRS launch. The firm’s Spot Bitcoin ETF (GBTC) experienced an outflow of $108.5 million on January 29. The historical cumulative outflow for GBTC reached $21.8 billion by January 30. Despite these outflows, the market continues to show interest in Bitcoin-related investment products.

🔻 U.S. spot bitcoin ETFs saw a net outflow of $457.48M on Monday, Jan. 27, ending a 7-day streak of positive inflows.

🚨 Leading the outflows:@Fidelity’s FBTC: $268.59M
Grayscale’s GBTC: $108.47M
Bitwise’s BITB: $88.57M
Ark & 21Shares’ ARKB: $50.11M
The silver lining? 🟢…

— Bitcoin.com News (@BTCTN) January 28, 2025

Grayscale’s Spot Ether ETF (ETHE) has also recorded outflows in recent days. The fund saw an outflow of $15.7 million on January 29, bringing its cumulative total to $3.8 billion as of January 30. ETHE has not recorded an inflow since January 13, but investor sentiment remains mixed.

📉 Ethereum Spot ETF Sees $4.82M Net Outflow!

On Jan 29, Ethereum spot ETFs saw a $4.82M net outflow, with Grayscale's ETHE leading the exits at $15.75M.

💰 Meanwhile, BlackRock’s ETHA had the highest inflow of $9.49M, followed by Fidelity’s FETH at $5.49M.

📊 Total ETH ETF… pic.twitter.com/ZXpqTtGzfU

— Degen Station (@Deg3nstation) January 30, 2025

The purpose of the MNRS ETF is to expose the Bitcoin ecosystem and its associated activities without actually owning the Bitcoin cryptocurrency itself. The trade of an ETF, however, is different from direct Bitcoin investment in that the latter is not traded on a traditional stock exchange. This means that they’re available to a wider set of investors through normal brokerage accounts. This structure also provides a layer of security and regulation that most investors like to have when starting with cryptocurrencies.

The interest in cryptocurrency related ETFs has been visible lately around the world. Indiana has made steps to gain Bitcoin ETF exposure for retirement funds. Demand for such offerings has been driven in large part by regulatory approvals.