Luxor claims as spot ETFs emerge, investors divert from Bitcoin mining stocks
Traditional investors are shifting away from using crypto-friendly mining stocks as a means to gain exposure to Bitcoin (BTC) due to the recent approval of spot Bitcoin exchange-traded funds (ETFs). Previously, publicly traded Bitcoin mining companies served as a gateway for investors to access the largest cryptocurrency without directly owning it. However, with the approval of Bitcoin ETFs, this dynamic has changed significantly.
Alessandro Cecere, a marketing specialist at Bitcoin mining services firm Luxor Technologies, stated that the market is now beginning to consider the upcoming fourth halving, which is expected to occur in mid-April. As a result, investors are no longer relying on public mining stocks to gain exposure to Bitcoin, as they once did.
CryptoQuant CEO Ki Young Ju previously highlighted an increase in miners’ selling activity since 2012, suggesting greater selling pressure on Bitcoin. However, Ju believes that the current bull market will continue unless there is a slowdown in ETF inflows. He also pointed out that U.S. mining companies are not the primary sellers of Bitcoin, indicating that offshore or older miners may be the top sellers.
Cecere addressed these developments by noting that publicly listed mining companies have the ability to issue new shares 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.
Following Ki Young Ju’s statement, the price of Bitcoin experienced a downturn, falling below $70,000 on March 14. As of press time, BTC is trading at $68,230, according to CoinMarketCap.
