Bitcoin mining revenue hit a new annual high this week as the cryptocurrency's price soared amid high excitement over the approval of the US Spot Bitcoin ETF by the SEC.
According to data from Blockchain.com, BTC mining revenue reached $42,386,514.038 on November 9, up from the annual high of $41,744,197.067 on May 8, 2023.
It was like the increase in mining The price of BTC It rose above $37,000 on November 9, in anticipation of the US spot Bitcoin ETF being approved by the Securities and Exchange Commission (SEC).
The price of BTC is currently above $37,200, up 7.5% on the week.
BTC mining revenue in 2023. Source: Blockchain.com
“Bitcoin miners earn more when two main factors come into play: the value of BTC itself and how busy the Bitcoin network is,” Blockchain.com President Len Casselman told Decrypt. “When the network is busy, it means that more people are using it, and they pay higher fees for transactions. Therefore, in May, although the price of Bitcoin was not particularly high, the network was congested, which led to a significant increase in mining revenues. But The recent increase in their income is largely due to the increase in the price of Bitcoin.”
May's network congestion was caused by high demand for the system. Deeds are similar to NFTs and allow digital assets to be recorded on the Bitcoin blockchain. Mining revenues rose to $40 million per day, even though the price of BTC at the time – $27,000 – was much lower than it is now.
The rise in Bitcoin prices came on the back of optimism that the Bitcoin ETF would be approved by the SEC. The expiration of the deadline for disclaimers on some pending ETF applications has created a short window in which 12 Bitcoin ETF applications can be approved at once.
It comes on reports that digital asset manager Greyscale is in talks with the SEC over the details of its application to convert the Greyscale Bitcoin Trust.GBTC) to a Bitcoin ETF. The reported conversations followed last month's order by a US appeals court to review Greyscale's application after it described the SEC's actions as “arbitrary and capricious”.
The SEC has so far rejected every single spot Bitcoin ETF or exchange-traded fund. An ETF is a type of publicly traded investment vehicle that tracks the performance of an underlying asset—in this case, BTC.
The approval of the U.S. spot Bitcoin ETF is considered a major milestone in institutional acceptance of the cryptocurrency, as it allows investors to gain exposure to the cryptocurrency market without managing the risk of holding the asset themselves.
While many hedge funds and investment firms have filed applications for Bitcoin ETFs with the SEC, new life was breathed into the race earlier this year when BlackRock, the world's largest asset manager, filed its own application. A recent report by JP Morgan analysts predicted that the Bitcoin ETF space could be approved by the SEC as soon as January 2024.
Edited by Stacy Elliott.
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