With the approval of the Spot Bitcoin ETF, it appears traditional investors are no longer relying on crypto-friendly mining stocks as an alternative to access BTC.
Publicly traded Bitcoin (BTC) mining companies have traditionally served as an entry point for investors to gain exposure to the largest cryptocurrency by market capitalization without directly owning the cryptocurrency. However, with the recent approval of the Spot Bitcoin Exchange Traded Fund (ETF), this dynamic has changed dramatically.
In a statement to crypto.news, Alessandro Cecere, head of marketing specials at Bitcoin mining service company Luxor Technology, said the market “may be starting to price in the fourth halving, scheduled for mid-April. Investors are no longer using stocks, he said. As before, a number of public mining companies to gain exposure to Bitcoin.
“The market may now be starting to price in the fourth halving, and with the approval and successful launch of a Bitcoin ETF, investors no longer need to obtain exposure to Bitcoin through mining stocks. , leading to a decline in the average stock price' premium over the BTC Spot they had previously. ”
Alessandro Sechere
As previously reported by crypto.news, CryptoQuant CEO Ki Young Ju emphasized that miner sales activity has increased since 2012, indicating increasing selling pressure on Bitcoin. .
However, Chu suggested that the current bull market is likely to continue unless ETF inflows slow. He also noted that U.S. mining companies are not the main sellers of Bitcoin, suggesting that offshore or legacy miners could be the biggest sellers.
In response to these developments, Cecere believed that listed miners have the ability to issue new shares as a way to raise capital, which is not available to private miners. This difference may explain why U.S.-based mining companies have not yet begun selling their crypto holdings, Cecere said.
“With interest rates at higher levels compared to the previous bull market, new bond issuance is no longer as attractive. This may explain why.”
Alessandro Sechere
Following Ki Yong-joo's remarks, the price of Bitcoin fell, dropping below the $70,000 level by late March 14th. As of this writing, Bitcoin is trading at $68,230, according to CoinMarketCap.
