Bitcoin (BTC) mining stocks have underperformed in recent weeks, but any weakness in the near term represents a potential buying opportunity, broker Bernstein said in a research report on Monday, The mining stocks are facing two headwinds following the approval of spot bitcoin exchange-traded funds (ETFs). First is "lower investor appetite to use them as a proxy,” and second is a weaker BTC price, resulting in further underperformance, the report said.

The Valkyrie Bitcoin Miners ETF (WGMI), which invests in publicly traded bitcoin mining stocks, fell nearly 38% this year, while the bitcoin price and broader equity markets were more or less flat.

However, this underperformance might provide a window for investors looking for an opportunity to buy into mining stocks. “Just like bitcoin, the next two months offer a dip buying opportunity in bitcoin miners,” as the stocks will offer "higher beta trade" to the next bitcoin price inflection, analysts Gautam Chhugani and Mahika Sapra wrote. There may be a further temporary weakness in bitcoin, with a potential short-term bottom in the $38,000-$42,000 range for the world’s largest cryptocurrency, the report said. Still, investors should be "structurally long" ahead of the next halving event, expected in April. In a separate note on Wednesday, Bernstein reiterated its bullish call on the miners. The broker recommends “achieving bitcoin exposure via bitcoin miners that offer a higher-beta than bitcoin driven by EBITDA expansion and market multiple growth into the bull cycle.” Bernstein says it prefers outperform rated stocks Riot Platforms (RIOT) and CleanSpark (CLSK). Read more: Bitcoin Miner CleanSpark Cut to Neutral, Riot Platforms Upgraded to Neutral: JPMorgan