"When Fidelity Crypto Industry and Digital Payments ETF (NYSEARCA:FDIG) peaked at $58 in late November 2025, crypto bulls were riding high. The fund has declined substantially since then, now trading around $42. The selloff wasn't unique to FDIG. Bitcoin dropped 15% from its November peak of $107,482 to around $91,000 today. FDIG tracked Bitcoin's decline almost perfectly, suggesting the fund provides diversified exposure to the crypto ecosystem without managing digital wallets."
"These are operational businesses with electricity costs, equipment depreciation, and profit margins that fluctuate based on mining difficulty and hashrate. Bitcoin mining difficulty hit all-time highs in late 2025, climbing to over 148 trillion. When difficulty rises, miners need more computational power to earn the same Bitcoin rewards, squeezing profitability. Hashprice, the revenue miners earn per unit of computing power, fell roughly 30% throughout 2025."
FDIG fell from a $58 peak in late November 2025 to around $42 while Bitcoin dropped about 15% from $107,482 to roughly $91,000, with FDIG closely tracking Bitcoin's decline. FDIG allocates about 31% to Bitcoin mining firms including Applied Digital, Iren, Cipher Mining, and Marathon Digital, which face electricity costs, equipment depreciation, and margin variability tied to mining difficulty and hashrate. Mining difficulty rose above 148 trillion in late 2025 and hashprice fell roughly 30% during 2025, reducing miner profitability and dragging on mining stocks and FDIG. A key 2026 factor is whether Bitcoin's price rises faster than mining difficulty increases. FDIG's largest holding represents about 34% of the portfolio and is likely the Fidelity Wise Origin Bitcoin Fund (FBTC).
Read at 24/7 Wall St.
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