Gaming ETFs Surge as GameStop Ventures into Bitcoin
GameStop Corp. (GME) shares jumped 11.7% after the company announced that its board had unanimously approved Bitcoin as a treasury reserve asset, according to a company release on Tuesday.
GameStop’s adoption of Bitcoin introduces a fresh perspective for the sector, as funds holding the company’s stock may now offer indirect exposure to cryptocurrency while outperforming broader markets and dedicated crypto funds.
Despite being down 5.4% year-to-date, GameStop's stock has surged 17.8% in the past month, likely driven by enthusiasm surrounding its Bitcoin initiative.
GameStop’s move has significant implications for ETFs that hold its shares. The VanEck Video Gaming and eSports ETF (ESPO), which allocates 5.2% of its portfolio to GameStop, has risen 10.9% this year. Similarly, the Amplify Video Game Tech ETF (GAMR), with a 3.5% allocation to GME, has returned 8.9% year-to-date, according to data from etf.com.
ESPO follows a market-cap-weighted index of global gaming and eSports companies, requiring them to generate at least half their revenue from related industries. Meanwhile, GAMR tracks the 20 largest gaming firms across the value chain.
Both gaming ETFs have outperformed the broader market, with the SPDR S&P 500 ETF Trust (SPY) declining by 1.5% in the same period. This underscores the resilience of gaming investments amid recent market volatility.
GameStop follows the precedent set by Strategy Inc. (MSTR), formerly MicroStrategy, which has aggressively accumulated Bitcoin.
Between March 17 and March 23, Strategy Inc. acquired 6,911 BTC for approximately $584.1 million in cash, bringing its total holdings to 506,137 Bitcoin—valued at roughly $43.9 billion at current prices, according to a regulatory filing on Monday.
However, ETFs tracking Strategy Inc. have underperformed gaming funds. The Bitwise Crypto Industry Innovators ETF (BITQ), which holds a 21.4% stake in Strategy, has declined 14.7% year-to-date, according to etf.com.
BITQ is passively managed to track a modified market-cap-weighted index of 30 global companies involved in the crypto-asset ecosystem but does not directly hold cryptocurrencies.
The performance gap highlights how gaming ETFs have outpaced both broad market indexes and crypto-focused funds, particularly during a period of economic uncertainty influenced by interest rate concerns and trade policies.
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