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Morgan Stanley’s recent initiation of coverage on Cipher Mining (CIFR - Free Report) and TeraWulf (WULF - Free Report) with overweight ratings sent both bitcoin miners’ shares soaring by double digits, as investors reacted enthusiastically to the bullish outlook. The bank set price targets of $38 for Cipher and $37 for TeraWulf, implying upside potential of roughly 158% and 159%, respectively, from their Feb. 6, 2026, levels, underscoring the magnitude of the anticipated revaluation.
For exchange-traded fund (ETF) investors, this creates a timely opportunity to gain exposure to these high-growth stocks through diversified vehicles, rather than taking on single-ticker volatility.
Before suggesting these ETFs for your portfolio, it is worth examining what prompted Morgan Stanley to assign such bullish price targets to the two crypto miners and why ETFs may offer a safer alternative than investing in the individual stocks. This context should help investors make a more informed decision.
The AI Pivot Behind Morgan Stanley's Bullish Thesis
According to Morgan Stanley, the primary catalyst that drove this optimistic outlook is the companies' fundamental business transformation, with both CIFR and WULF pivoting from pure-play bitcoin mining toward high-demand AI data center services. As the AI surge creates a desperate demand for high-performance computing (HPC) power, Morgan Stanley views these miners more like Data Center REITs (Real Estate Investment Trusts). By leasing their sites to creditworthy AI and cloud partners, they secure stable, long-term cash flows that are far more valuable and predictable than the erratic margins of traditional crypto mining.
Against this backdrop, the strategic repositioning is viewed as a key advantage, enabling the companies to leverage their existing infrastructure, particularly access to reliable, low-cost power, at a time when the industry faces a structural shortage of AI compute capacity. Morgan Stanley believes this diversification into AI will be a major driver of future growth and help justify the substantial expected price appreciation.
Why ETFs Outshine Individual Stock Choice
While the triple-digit upside is tempting, investing in individual mining stocks remains a high-stakes proposition. Both Cipher and TeraWulf have experienced sharp pullbacks and extreme volatility in the recent past. For example, Cipher saw significant declines during the broader crypto sell-off in early February 2026, prior to this news.
Choosing an ETF over individual stocks provides a built-in ‘volatility buffer.’ By investing in funds with meaningful weightings in CIFR, WULF, or both — alongside a broader basket of digital assets — investors can participate in the upside driven by the Morgan Stanley catalyst while reducing exposure to sudden, idiosyncratic stock declines. Diversification helps ensure that weakness in any single miner does not derail the overall portfolio, while still allowing investors to benefit from the sector’s broader shift toward AI.
ETFs at Play
Considering the aforementioned discussion, investors seeking exposure to the more than 150% upside thesis while remaining insulated from single-stock volatility may consider adding the following ETFs to their portfolios:
This fund, with net assets of $252.6 million, provides exposure to 35 companies positioned to benefit from the growing adoption of blockchain technology. Its holdings span digital asset mining, blockchain and digital asset transactions, blockchain applications, blockchain and digital asset hardware, and blockchain and digital asset integration. Of these, WULF and CIFR hold the sixth and seventh positions, respectively, with weightages of 7.04% and 6.02%.
BKCH has surged 26.8% over the past year. The fund charges 50 basis points (bps) as fees. It traded at a volume of 0.1 million shares in the last trading session.
This fund, with net assets worth $1.08 billion, offers exposure to 54 companies actively involved in the development and utilization of blockchain technologies. Of these, WULF and CIFR hold the second and third positions, respectively, with weightages of 4.20% and 4.11%.
BLOK has gained 17.2% over the past year. The fund charges 70 bps as fees. It traded at a volume of 0.35 million shares in the last trading session.
This fund, with assets under management (AUM) worth $11.04 million, offers exposure to 31 globally listed Bitcoin Mining companies that serve as the backbone of the Bitcoin network. Of these, CIFR and WULF hold the third and fourth positions, respectively, with weightages of 10.37% and 5.60%.
MNRS has rallied 28.2% over the past year. The fund charges 59 bps as fees. It traded at a volume of 0.004 million shares in the last trading session.
This fund, with net assets worth $286.5 million, offers exposure to 25 companies at the forefront of the digital assets transformation. Of these, WULF and CIFR hold the sixth and eight positions, respectively, with weightages of 5.50% and 4.72%.
DAPP has gained 13.3% over the past year. The fund charges 52 bps as fees. It traded at a volume of 0.34 million shares in the last trading session.
This fund, with net assets worth $245 million, offers exposure to 42 companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. Of these, CIFR holds the third position, with a weightage of 6.26%.
STCE has gained 26.7% over the past year. The fund charges 30 bps as fees. It traded at a volume of 0.11 million shares in the last trading session.
This fund, with net assets worth $164.6 million, offers exposure to companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. Of these, WULF holds the fourth position, with a weightage of 5.76%.
SPRX has soared 49.3% over the past year. The fund charges 75 bps as fees. It traded at a volume of 0.14 million shares in the last trading session.
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ETFs to Play as Morgan Stanley Bets 150%+ Upside for 2 Bitcoin Miners
Key Takeaways
Morgan Stanley’s recent initiation of coverage on Cipher Mining (CIFR - Free Report) and TeraWulf (WULF - Free Report) with overweight ratings sent both bitcoin miners’ shares soaring by double digits, as investors reacted enthusiastically to the bullish outlook. The bank set price targets of $38 for Cipher and $37 for TeraWulf, implying upside potential of roughly 158% and 159%, respectively, from their Feb. 6, 2026, levels, underscoring the magnitude of the anticipated revaluation.
For exchange-traded fund (ETF) investors, this creates a timely opportunity to gain exposure to these high-growth stocks through diversified vehicles, rather than taking on single-ticker volatility.
Before suggesting these ETFs for your portfolio, it is worth examining what prompted Morgan Stanley to assign such bullish price targets to the two crypto miners and why ETFs may offer a safer alternative than investing in the individual stocks. This context should help investors make a more informed decision.
The AI Pivot Behind Morgan Stanley's Bullish Thesis
According to Morgan Stanley, the primary catalyst that drove this optimistic outlook is the companies' fundamental business transformation, with both CIFR and WULF pivoting from pure-play bitcoin mining toward high-demand AI data center services. As the AI surge creates a desperate demand for high-performance computing (HPC) power, Morgan Stanley views these miners more like Data Center REITs (Real Estate Investment Trusts). By leasing their sites to creditworthy AI and cloud partners, they secure stable, long-term cash flows that are far more valuable and predictable than the erratic margins of traditional crypto mining.
Against this backdrop, the strategic repositioning is viewed as a key advantage, enabling the companies to leverage their existing infrastructure, particularly access to reliable, low-cost power, at a time when the industry faces a structural shortage of AI compute capacity. Morgan Stanley believes this diversification into AI will be a major driver of future growth and help justify the substantial expected price appreciation.
Why ETFs Outshine Individual Stock Choice
While the triple-digit upside is tempting, investing in individual mining stocks remains a high-stakes proposition. Both Cipher and TeraWulf have experienced sharp pullbacks and extreme volatility in the recent past. For example, Cipher saw significant declines during the broader crypto sell-off in early February 2026, prior to this news.
Choosing an ETF over individual stocks provides a built-in ‘volatility buffer.’ By investing in funds with meaningful weightings in CIFR, WULF, or both — alongside a broader basket of digital assets — investors can participate in the upside driven by the Morgan Stanley catalyst while reducing exposure to sudden, idiosyncratic stock declines. Diversification helps ensure that weakness in any single miner does not derail the overall portfolio, while still allowing investors to benefit from the sector’s broader shift toward AI.
ETFs at Play
Considering the aforementioned discussion, investors seeking exposure to the more than 150% upside thesis while remaining insulated from single-stock volatility may consider adding the following ETFs to their portfolios:
Global X Blockchain ETF (BKCH - Free Report)
This fund, with net assets of $252.6 million, provides exposure to 35 companies positioned to benefit from the growing adoption of blockchain technology. Its holdings span digital asset mining, blockchain and digital asset transactions, blockchain applications, blockchain and digital asset hardware, and blockchain and digital asset integration. Of these, WULF and CIFR hold the sixth and seventh positions, respectively, with weightages of 7.04% and 6.02%.
BKCH has surged 26.8% over the past year. The fund charges 50 basis points (bps) as fees. It traded at a volume of 0.1 million shares in the last trading session.
Amplify Blockchain Technology ETF (BLOK - Free Report)
This fund, with net assets worth $1.08 billion, offers exposure to 54 companies actively involved in the development and utilization of blockchain technologies. Of these, WULF and CIFR hold the second and third positions, respectively, with weightages of 4.20% and 4.11%.
BLOK has gained 17.2% over the past year. The fund charges 70 bps as fees. It traded at a volume of 0.35 million shares in the last trading session.
Grayscale Bitcoin Miners ETF (MNRS - Free Report)
This fund, with assets under management (AUM) worth $11.04 million, offers exposure to 31 globally listed Bitcoin Mining companies that serve as the backbone of the Bitcoin network. Of these, CIFR and WULF hold the third and fourth positions, respectively, with weightages of 10.37% and 5.60%.
MNRS has rallied 28.2% over the past year. The fund charges 59 bps as fees. It traded at a volume of 0.004 million shares in the last trading session.
VanEck Digital Transformation ETF (DAPP - Free Report)
This fund, with net assets worth $286.5 million, offers exposure to 25 companies at the forefront of the digital assets transformation. Of these, WULF and CIFR hold the sixth and eight positions, respectively, with weightages of 5.50% and 4.72%.
DAPP has gained 13.3% over the past year. The fund charges 52 bps as fees. It traded at a volume of 0.34 million shares in the last trading session.
Schwab Crypto Thematic ETF (STCE - Free Report)
This fund, with net assets worth $245 million, offers exposure to 42 companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. Of these, CIFR holds the third position, with a weightage of 6.26%.
STCE has gained 26.7% over the past year. The fund charges 30 bps as fees. It traded at a volume of 0.11 million shares in the last trading session.
Spear Alpha ETF (SPRX - Free Report)
This fund, with net assets worth $164.6 million, offers exposure to companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. Of these, WULF holds the fourth position, with a weightage of 5.76%.
SPRX has soared 49.3% over the past year. The fund charges 75 bps as fees. It traded at a volume of 0.14 million shares in the last trading session.