Grayscale has introduced the Grayscale Bitcoin Miners ETF (MNRS), providing investors with exposure to companies operating in the Bitcoin mining industry. 

This ETF focuses on firms included in the Indxx Bitcoin Miners Index, which tracks businesses that generate most of their revenue from Bitcoin mining or related services, including hardware, software, and infrastructure.

Grayscale Continuous to Innovate with Crypto ETFs

The latest ETF offers an alternative for those looking to invest in the Bitcoin mining sector without directly holding digital assets. It caters to investors interested in companies linked to Bitcoin’s price movements. 

The fund will appeal to investors who may not want or have the ability to invest in cryptocurrencies directly.

However, the fund does not invest in Bitcoin, other digital currencies, derivatives, or initial coin offerings. It may have indirect exposure to digital assets through investments in companies that use or hold them as part of their business operations.

Overall, Grayscale remains a dominant player in developing products that are taking crypto to the retail investment scene. 

“Bitcoin Miners, the backbone of the network, are well-positioned for significant growth as Bitcoin adoption and usage increases, making MNRS an appealing option for a diverse range of investors,” David LaValle, Global Head of ETFs at Grayscale told BeInCrypto.

Currently, its Bitcoin Trust (GBTC) manages more than $20 billion in assets. Despite being the pioneer of Bitcoin ETF, GBTC currently ranks third behind BlackRock’s IBIT and Fidelity’s FBTC. 

The firm has expanded its ETF offerings in recent months, broadening access to crypto-related investments.

In addition to launching MNRS, Grayscale has applied for a spot Litecoin ETF, which the SEC could approve ahead of other altcoin ETFs. The company also submitted an application for a Solana ETF months ago.

Grayscale recently disclosed a list of 40 digital assets, including AI and meme tokens, that may be integrated into its investment products. 

In December, it opened its Horizen Trust (HZEN) to accredited investors, a product that had been maintained for years but was not previously available over-the-counter (OTC). 

The firm has also introduced new trusts for Stellar (XLM), Lido DAO, and Optimism, further expanding its crypto-focused offerings.

Matt Hougan, Chief Investment Officer at Bitwise, said that President Donald Trump’s executive order could have a significant effect on Bitcoin’s (BTC) four-year cycle. 

While Hougan acknowledged that the market has not fully overcome the cycle, he expects any pullbacks to be shorter and less intense compared to previous years.

Impact of Trump’s Executive Order On Bitcoin’s Cycle

In his latest weekly memo, Hougan highlighted the President’s executive order and the Securities and Exchange Commission’s (SEC) recent pro-crypto shifts as major catalysts for Bitcoin’s mainstream adoption.

On January 23, President Trump signed an official order to establish a “national digital asset stockpile.” As a result, crypto inflows surged to $1.9 billion.

“It created a pathway for the largest Wall Street banks and investors to move aggressively into the space,” Hougan wrote.

According to Hougan, the current crypto cycle started in March 2023. This was when Grayscale secured a significant early victory in its legal battle with the SEC over a Bitcoin ETF. 

The ETFs launched in January 2024, with hundreds of billions of dollars entering the market from new investors. Nonetheless, Hougan sees the executive order as a catalyst for an even more significant transformation.

“But the full mainstreaming of crypto—the one contemplated by Trump’s executive order, where banks custody crypto alongside other assets, stablecoins are integrated broadly into the global payments ecosystem, and the largest institutions establish positions in crypto—I’m convinced will bring trillions,” the note read.

Notably, Bitcoin’s four-year cycle is a pattern driven by halving events. The price typically experiences a bearish accumulation phase. This is followed by a bull market due to reduced supply and then a bear market after the peak. This cycle repeats approximately every four years as the block reward for miners is halved.

BTC experienced downturns in 2014, 2018, and 2022. If this pattern holds, the next pullback could occur in 2026. Despite this, Hougan remained optimistic about crypto’s long-term trajectory.

“The crypto space has matured; there’s a greater variety of buyers and more value-oriented investors than ever before. I expect volatility, but I’m not sure I’d bet against crypto in 2026,” Hougan acknowledged. 

He also predicted 2025 to be a favorable year for crypto. 

“We’re on the record predicting that bitcoin’s price will double this year to above $200,000, driven by flows into ETFs and bitcoin purchases by corporations and governments,” stated the CIO. 

However, Hougan added that the forecast might be conservative. Lastly, he pointed out that the impact of Trump’s executive order and broader regulatory shifts will unfold over years rather than months. 

According to Hougan, establishing a new crypto regulatory framework will take at least a year. Moreover, Wall Street firms may require even more time to adapt.

Meanwhile, the CIO stated that leverage will build, excesses will emerge, and bad actors will surface. This may potentially lead to a sharp pullback. 

Nonetheless, Hougan believes any correction is likely to be “shorter”  and “shallower.” This is because of the crypto market’s maturity and a more diverse, value-driven investor base.

Tesla saw a boost in its financial performance in the fourth quarter of 2024, thanks in part to its Bitcoin holdings.

The company reported a $600 million gain due to a change in accounting rules. The move allowed Tesla to value its Bitcoin at market prices. 

Tesla Makes $600 Million on Bitcoin

This shift in accounting standards stems from a new rule by the Financial Accounting Standards Board (FASB). The rule mandates that starting in 2025, companies holding digital assets must mark those assets to market each quarter.

The new FASB rule gives companies the option to implement this change earlier, which Tesla appears to have done. Before this rule, companies were required to report their digital assets based on the lowest valuation of those assets during their time of ownership.

Now, after adjusting values to current market prices, Tesla saw a marked increase in the valuation of its Bitcoin holdings. Moreover, as per its earnings release, Tesla did not sell any Bitcoin in Q4.

In Q4 2024, Tesla’s Bitcoin holdings were valued at $1.076 billion, up from just $184 million in previous quarters after the rule change. The dramatic increase reflects the changing market value of Bitcoin, which has seen fluctuations over time. 

This increase in Bitcoin’s market value contributed to a $600 million gain, boosting Tesla’s financial performance. The company’s total GAAP income for Q4 reached $2.3 billion, meaning that Bitcoin gain played a key role in the results.

“It’s important to point out that the net income in Q4 was impacted by a $600 million mark-to-market benefit from Bitcoin due to the adoption of a new accounting standard for digital assets,” CFO Vaibhav Taneja reportedly noted on the earnings call.

According to Bitcoin Treasuries, Tesla holds 9,720 BTC, making it the sixth-largest publicly traded company holding Bitcoin.

Tesla entered the Bitcoin market in 2021 with the purchase of 43,200 BTC. Following this initial purchase, Tesla sold part of its Bitcoin holdings over the years.

The change in Tesla’s Bitcoin valuation has also raised questions about the effect the new accounting rules will have on Microstrategy earnings. 

“What on earth is going to happen when MicroStrategy announce their earnings next week. They have 471,107 Bitcoin and most likely will also take advantage of the new FASB accounting rule,” a X user posted.