Summary Bitwise Crypto Industry Innovators ETF is reiterated as a Buy, offering diversified crypto exposure without direct cryptocurrency ownership. BITQ's performance remains closely tied to Bitcoin, reflecting the asset class's extreme volatility and recent correction from record highs. U.S. regulatory support, notably the GENIUS Act, and expanding institutional adoption enhance the long-term viability and addressable market for crypto assets. BITQ trades in a wide range, with technical resistance at $31.45 and support at $10.50; a scale-down accumulation strategy is advised given volatility. Bitcoin (BTC-USD) reached a new record high of $126,184.05 in October 2025, where the leading cryptocurrency ran out of upside steam. After falling 36% to a low of $74,604.12 on February 2, the price has substantially corrected. I last wrote about the Bitwise Crypto Industry Innovators ETF ( BITQ ) on Seeking Alpha on September 25, 2025 , when I concluded with the following: BITQ provides a diversified option for investors and traders seeking crypto exposure without owning the cryptocurrencies or specific companies that benefit from the asset class’s bullish trend. BITQ was trading at $24.54 per share on September 25. The ETF rose to a high of $31.45 in October and dropped 40.5% to a low of $18.70 in November. At $75,835 per token on February 3, Bitcoin was 39.9% below its October peak, and BITQ at $20.30 was 35.5% below its October high. I rated BITQ a Buy in September, and I reiterate that Buy recommendation now in early February 2026. Bitcoin and cryptos have a long history of extreme volatility Bitcoin is the leading cryptocurrency. At the $75,800 per token level, the market capitalization was around $1.514 trillion, or 58.9% of the entire asset class’s value. Bitcoin’s volatility reflects the price variance of all cryptocurrencies. Monthly Bitcoin Chart (Barchart) The monthly chart highlights Bitcoin’s extreme volatility. The recent correction from over $126,000 to below $76,000 is nothing new; it is another chapter in the volatile asset’s short history. So far, Bitcoin has held above the April 2025 support level at $74,496.62 with the recent low at $74,604.12. Meanwhile, cryptocurrency supporters argue that blockchain technology and cryptocurrencies reflect the technological advances in finance. Detractors believe that cryptocurrencies have no intrinsic value and can be used for nefarious purposes. Moreover, governments survive and thrive on the power of the purse, or controlling the money supply. Cryptocurrencies could threaten governmental influence. Increasing acceptance favors higher highs While the debate over the future of cryptocurrencies continues, acceptance has increased. Many leading financial institutions now allow their customers to allocate to cryptocurrencies as part of their overall investment and savings portfolios. The United States, under the Trump administration, has lifted many restrictions on cryptocurrency. Today, major banks, including BNY Mellon, JPMorgan Chase, and Standard Chartered, offer digital asset custody services for institutional investors. Investment banks, including Goldman Sachs and Morgan Stanley, provide clients with access to crypto trading services and investment funds, including Bitcoin and Ether ETFs. The bottom line is that regulatory changes for banks and other financial institutions increase the addressable market for the cryptocurrency asset class. The U.S. administration supports the cryptocurrency asset class In July 2025, U.S. President Donald Trump signed the first major federal law governing cryptocurrency, the GENIUS Act, which had bipartisan support. The GENIUS Act set rules for stablecoin issuers, including a mandate that firms hold a reserve of assets underlying the cryptocurrency. Tether, the leading stablecoin with an over $186 billion market cap, holds a diverse pool of reserves, including U.S. Treasuries and cash equivalents, as well as significant quantities of gold, Bitcoin, money market funds, corporate bonds, and other investments, to achieve over-collateralization and stability. Tether trades at around par with the U.S. dollar, the world’s reserve currency. The White House Fact Sheet on the GENIUS ACT, issued on July 18, 2025, highlights the legislation that: Will pave the way for the United States to lead the global digital revolution . BITQ owns companies that are trading and storage platforms, miners, and pick-and-shovel cryptocurrency-related businesses The U.S. remains the world’s leading economy, and the current administration’s support for cryptocurrencies goes a long way to increase the asset class’s future viability. The top holdings of the Bitwise Crypto Industry Innovators ETF include: Top Holdings of the BITQ ETF (Seeking Alpha) BITQ’s fund profile states: Fund Profile for the BITQ ETF (Seeking Alpha) BITQ’s current holdings include cryptocurrency platforms, miners, and the pick-and-shovel-related cryptocurrency businesses. At $20.21 per share, BITQ had $400.70 million in assets under management. The liquid ETF trades an average of over 344,000 shares daily and charges a 0.85% management fee. A bullish trend - Levels to watch in BITQ shares Like the rest of the cryptocurrency asset class, the BITQ ETF is closely correlated with Bitcoin prices. The ETF reached its record high of $35.68 per share in November 2021, shortly after it began trading in May 2021. BITQ soared on excitement over the initial listing. When Bitcoin’s price reached its record high in October 2025, BITQ reached a lower high of $31.45 per share, which is now the critical technical resistance level. BITQ has declined alongside Bitcoin since the October peak. Five-Year Monthly Chart of the BITQ ETF (Barchart) The monthly chart shows that BITQ has made higher lows and higher highs since trading at the December 2022 low of $3.20 per share. While technical resistance is at the October 2025 high of $31.45, support is at the April 2025 low of $10.50 per share. At just above the $20 level in early February 2026, BITQ is in the middle of the wide trading range. BITQ should continue to move in tandem with Bitcoin prices. Therefore, the pick-and-shovel cryptocurrency ETF provides exposure to the volatile asset class. Given the U.S. legislation through the GENIUS Act, the expanding addressable market among banks and financial institutions, the need for technological innovation in U.S. and global finance, and the asset class’s volatile nature that attracts significant and rising speculative interest, I rate BITQ a Buy at the current price. As with all cryptocurrency-related investments, BITQ requires careful attention to risk-reward dynamics, as it is likely to continue experiencing significant price volatility. I favor higher prices for BITQ in 2026. However, when accumulating a long BITQ position, leave plenty of room to add on further declines, as picking bottoms in markets experiencing wide price swings is challenging. A scale-down approach to BITQ and other cryptocurrency-related assets could be optimal for the coming year.
