Bitcoin

Read

With the approval of spot Bitcoin ETFs, traditional investors seem no longer relying on crypto-friendly mining stocks as a proxy to gain access to BTC.
Publicly traded Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) mining companies have traditionally served as a gateway for investors to gain exposure to the largest cryptocurrency by market capitalization without directly owning it. However, the recent approval of spot Bitcoin exchange-traded funds (<a href="https://crypto.news/tag/bitcoin-etf/" target="_blank" rel="noopener noreferrer nofollow">ETFs</a>) has dramatically changed this dynamic.
In a statement to crypto.news, Alessandro Cecere, marketing specials at Bitcoin <a href="https://crypto.news/tag/mining/" target="_blank" rel="noopener noreferrer nofollow">mining</a> services firm Luxor Technologie said that the market “may now be starting to price in” the fourth <a href="https://crypto.news/tag/halving/" target="_blank" rel="noopener noreferrer nofollow">halving</a> — due in mid-April — and investors are no longer utilizing stocks of public mining companies to obtain exposure to Bitcoin, as they once did.
<blockquote class="wp-block-quote">
 “The market may now be starting to price in the 4th halving, and now that Bitcoin ETFs have been approved, and experienced a successful launch, investors aren’t forced to obtain exposure to Bitcoin through mining stocks, leading to a reduction in the average premium to BTC spot they used to have.”
 Alessandro Cecere
</blockquote>
As crypto.news <a href="https://crypto.news/bitcoin-bullish-momentum-to-persist-despite-miners-sell-off-cryptoquant-ceo-says/" target="_blank" rel="noopener noreferrer nofollow">reported</a> earlier, CryptoQuant CEO Ki Young Ju highlighted an uptick in miners’ selling activity since 2012, indicating increased selling pressure on Bitcoin.
You might also like: <a href="https://crypto.news/how-much-you-could-make-or-lose-mining-bitcoin-in-2024/" rel="noopener noreferrer nofollow"> How much you could make or lose mining Bitcoin in 2024 </a>
However, Ju suggested that the current bull market would likely persist unless there is a slowdown in ETF inflows. He also noted that U.S. mining companies are not the primary Bitcoin sellers, implying that offshore or older miners may be the top sellers.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 U.S. mining companies aren't major <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> sellers; the sellers are likely offshore or older miners. <a href="https://t.co/H6lffwviAR" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/H6lffwviAR</a>— Ki Young Ju (@ki_young_ju) <a href="https://twitter.com/ki_young_ju/status/1768109493706199423?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 14, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
Addressing these developments, Cecere attributed the ability of publicly listed miners to issue new shares as a way to raise capital, which is not available to private miners. This distinction may explain why U.S.-based mining companies have not yet started selling off their crypto holdings, Cecere noted.
<blockquote class="wp-block-quote">
 “With interest rates at high levels compared to the last bull market, issuing new debt is not as attractive anymore, this might explain why overseas miners are selling Bitcoin as they prepare for a significant reduction in revenues after the halving.”
 Alessandro Cecere
</blockquote>
Following Ki Young Ju’s statement, Bitcoin’s price experienced a downturn, dropping below the $70,000 level late on Mar. 14. As of press time, BTC is trading at $68,230, according to CoinMarketCap.
Read more: <a href="https://crypto.news/bitcoin-mining-difficulty-all-time-high-2/" rel="noopener noreferrer nofollow"> Bitcoin mining difficulty reaches new all-time high </a>

Investors shift away from Bitcoin mining stocks as spot ETFs open new avenue, Luxor says

crypto.news

Other articles published on Mar 15, 2024

Avalanche Foundation Reveals First Five Memecoin Holdings for Culture Catalyst Program

JMP Securities Says Bitcoin Could Hit $280,000

Bitcoin's Recent Rally Could Trigger Potential Upswing In Luxury Watch Prices, Echoing 2021 Patte...

Bitcoin Faces 3 Possible Paths After Dipping Below $67,000, Analysts Say

DogWifHat Price Prediction: Is Price Poised for a $5 Surge

Blockchain AI platform NetMind assures no platform breach amid NMT token sale speculation

Join our free newsletter for daily crypto updates!