Post Content
-
CRPT fell 9.52% in 2025 as Bitcoin mining margins collapsed from rising difficulty and elevated energy costs.
-
The March 2025 executive order established a Strategic Bitcoin Reserve. The government will treat Bitcoin as a reserve asset.
-
Metaplanet represents 13.8% of the portfolio while Coinbase is the largest holding at 4.5%.
-
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
The First Trust SkyBridge Crypto Industry and Digital Economy ETF (NYSEARCA:CRPT) faced significant headwinds in 2025, disappointing investors who anticipated a crypto renaissance following President Trump’s election victory and promises to make America the “crypto capital of the world.” The fund’s concentrated bets on Bitcoin miners and proxy stocks delivered challenging returns as the sector navigated operational pressures.
CRPT’s largest headwind was deteriorating Bitcoin mining economics. Mining difficulty surged throughout 2025, reaching near-record levels while energy costs remained elevated. This crushed margins for mining stocks comprising a meaningful portion of CRPT’s portfolio. MARA Holdings (NASDAQ:MARA), a key holding, faced significant pressure, while MicroStrategy (NASDAQ:MSTR), the fund’s 4.3% position and poster child for corporate Bitcoin accumulation, experienced substantial declines.
The sector faced a perfect storm: rising operational costs, increased mining difficulty following Bitcoin’s April 2024 halving, and weakening institutional demand as traditional finance remained cautious. Even Coinbase (NASDAQ:COIN), CRPT’s largest holding at 4.5%, faced challenges as trading volumes disappointed. Anthony Scaramucci, who co-manages the fund, predicted Bitcoin would reach $200,000 in 2025. That forecast missed badly, and CRPT’s stock-based approach amplified the pain beyond direct Bitcoin ownership.
The factor that could reverse CRPT’s fortunes is the March 2025 executive order establishing a Strategic Bitcoin Reserve. According to the White House fact sheet, the government will treat Bitcoin as a reserve asset and explore budget-neutral strategies for acquiring additional holdings. This represents a fundamental shift in how the U.S. views digital assets, potentially triggering institutional adoption.
For CRPT, this policy matters because the fund’s holdings—exchanges like Coinbase and Robinhood (NASDAQ:HOOD), infrastructure plays like Galaxy Digital (TSX:GLXY), and Bitcoin treasury companies like Metaplanet (13.8% of the portfolio)—all benefit directly from increased legitimacy and capital flows. Wall Street analysts have responded with upgraded targets: JPMorgan suggests Bitcoin’s fair value sits near $170,000, while Standard Chartered forecasts $150,000 by end-2026. If those projections materialize, CRPT’s leveraged exposure through mining stocks and treasury companies could deliver outsized gains.
Investors seeking less volatility might examine the Bitwise Bitcoin ETF (NYSEARCA:BITB), which offers direct Bitcoin exposure without operational risk of mining stocks or leverage of treasury companies. With a lower 0.20% expense ratio and straightforward spot Bitcoin holdings, BITB eliminates the company-specific risks that challenged CRPT in 2025.
Watch for two signals in 2026: whether Bitcoin mining difficulty stabilizes as energy costs moderate, and whether the Strategic Bitcoin Reserve triggers meaningful institutional capital deployment into the crypto ecosystem that lifts CRPT’s exchange and infrastructure holdings.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. Even great investments can be a liability in retirement. It’s a simple difference between accumulating vs distributing, and it makes all the difference.
The good news? After answering three quick questions many Americans are reworking their portfolios and finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.
Terms and Privacy Policy