Key Highlights
- Grayscale converted the Bitcoin Miners ETF into the Grayscale AI Compute ETF (GCPU) on September 22.
- The fund now tracks the Indxx High Performance Computing Index.
- IREN, Hut 8 and Applied Digital remain among its largest holdings.
Grayscale has converted its Bitcoin-focused mining ETF into an artificial intelligence and high-performance computing fund, changing the product’s name, ticker and underlying index while retaining several companies involved in Bitcoin mining.
According to Grayscale’s September 22 announcement the former Grayscale Bitcoin Miners ETF (MNRS) is now the Grayscale AI Compute ETF (GCPU).
The fund now tracks the Indxx High Performance Computing Index, replacing its previous focus on companies primarily associated with Bitcoin mining.
ETF changes investment focus
Under its new mandate, GCPU can invest in companies involved in AI and GPU cloud services, data-center hosting, high-performance and accelerated computing infrastructure, as well as related computing hardware and services.
The change comes as some Bitcoin mining companies have moved into data-center and computing businesses alongside their mining operations.
These businesses can share certain infrastructure requirements, including electricity capacity and large-scale facilities, although their underlying markets and revenue sources remain different.
Bitcoin mining companies remain major holdings
The conversion did not immediately remove the ETF’s exposure to Bitcoin miners.
As of September 21, the fund held 27 companies, with several mining-related companies among its largest positions.
The fund’s top holdings included IREN (15.84%), Hut 8 (11.61%), Applied Digital (8.37%), MARA Holdings (4.87%), Riot Platforms (4.54%), CleanSpark (4.53%), Bit Digital (4.24%), Nvidia (4.11%), and Bitdeer (4.07%).
Grayscale companies holding chart | Source: Grayscale
The portfolio therefore remains materially exposed to companies with Bitcoin mining operations despite the fund’s new mandate.
GCPU tracks high-performance computing index
GCPU is designed to track the Indxx High Performance Computing Index, before fees and expenses.
The ETF trades on NYSE Arca and has an expense ratio of 0.59%. Grayscale classifies the fund as non-diversified, meaning individual companies can represent relatively large portions of the portfolio.
Its updated disclosures identify risks including changes in computing technology, competition, electricity availability, equipment shortages, supply-chain disruptions and export restrictions.
The documents also caution that demand for AI infrastructure may not develop as expected.
Historical returns reflect the old strategy
GCPU’s historical performance does not reflect its new investment strategy.
Before the September 22 conversion, the fund operated as the Bitcoin Miners ETF, so its previous returns were primarily tied to companies involved in cryptocurrency mining.
As of September 21, the fund’s market price was $38.56.
Its cumulative market-price return since inception was 29.17% through August 31, while its three-month return was -34.46% and its six-month return was 9.99%.
These figures predate the conversion and therefore should not be treated as performance under the GCPU mandate.
Mining companies move into data centers
The ETF restructuring comes as some Bitcoin mining companies develop data-center businesses alongside their existing operations.
Bitcoin mining and high-performance computing both require substantial electricity and physical infrastructure, but the two businesses have different computing requirements and economics.
Companies including IREN, Hut 8 and Applied Digital have been developing businesses beyond traditional Bitcoin mining, making them relevant to the ETF’s new investment focus while retaining exposure to the crypto-mining sector.
Grayscale restructures ETF lineup
The GCPU conversion follows other changes to Grayscale’s exchange-traded product lineup.
Earlier in September, Grayscale filed an amendment seeking to convert its Litecoin Trust (LTCN) into an ETF listed on NYSE Arca.
LTCN has traded on OTC Markets since August 2020. The proposed conversion remains subject to regulatory approval and has not yet resulted in an NYSE Arca-listed Litecoin ETF.
What the conversion means
The September 22 restructuring changes the fund’s stated investment focus from Bitcoin mining toward AI and high-performance computing infrastructure.
However, its portfolio still contains several companies with significant mining operations. GCPU therefore retains exposure to factors affecting the crypto-mining sector, including Bitcoin prices, mining economics and energy costs.
At the same time, the new index introduces a broader focus on companies involved in AI computing, data centers and related infrastructure.
The key change is therefore the ETF’s investment mandate, while its existing holdings continue to give the fund a substantial connection to the Bitcoin mining industry.
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