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 (BTC) 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 (ETFs) has dramatically changed this dynamic.
In a statement to crypto.news, Alessandro Cecere, marketing specials at Bitcoin mining services firm Luxor Technologie said that the market “may now be starting to price in” the fourth halving — due in mid-April — and investors are no longer utilizing stocks of public mining companies to obtain exposure to Bitcoin, as they once did.
“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
As crypto.news reported earlier, CryptoQuant CEO Ki Young Ju highlighted an uptick in miners’ selling activity since 2012, indicating increased selling pressure on Bitcoin.
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.