With the first U.S. spot Bitcoin ETF in sight, the entire crypto industry seems optimistic about how such a product could strengthen Bitcoin's legitimacy in the investment world, fuel institutional adoption, and send BTC prices soaring. to the moon.
For the most part, that includes Bitcoin mining firms — companies that manage large fleets of computers and work to secure the Bitcoin network and mine newly minted coins. However, a key fact about the current Bitcoin investment landscape worries investors in mining companies a bit.
“We're optimistic about ETFs, and there are signs that it's going to be positive,” said Isaac Holoak, chief communications officer at CleanSpark. Decrypt. He noted that mining stocks tend to inherit Bitcoin's positive momentum during bullish periods. Although Bitcoin itself is more than 100% this year, official Mineral deposits They got stronger returns on average – with others BTC-adjacent organizations. Until now, such companies have been playing more traditional leverage, as a rule, to investors in BTC in the absence of ETFs.
But there's a catch: While Bitcoin ETFs look promising, investors can siphon capital from stocks that are seen as the next best thing so far. CleanSpark, on the other hand, remains optimistic with its focus on the value of Bitcoin. “Recent developments – both False claim The ETF and one hint from List of CUSIP— both of which pushed bitcoin's price up,” Holoyak explained.
Since the majority of mining company revenue comes from fixed BTC rewards, rising BTC prices translate into higher dollar revenue for the entire industry.
In anticipation of high future prices, Cleanspark has been drop off Millions of dollars in mining this year to give the peak season.
It was shared with Mining Industry Report in October. DecryptJPMorgan equity analyst Reginald L. Smith named CleanSpark ( CLSK ) an overweight stock, thanks to its acquisition of hardware and utilities at “deeply discounted prices” and running a very efficient fleet. CLSK is up 122% year to date.
Another major infrastructure investment this year is Iris Energy ( IREN )—a renewables-focused miner that is particularly bullish on the upcoming Bitcoin boom. Smith called Iris shares, which are up 161 percent this year, “overweight.”
“[The halving] As coins get tighter, that historically involves more price stimulus,” said Daniel Roberts, founder and CEO of Iris Energy. “Add in the easing of macro financial conditions over the next 6-12 months and we could be in for a very exciting time for Bitcoin.”
As for ETFs, Roberts noted that the SEC's approval could open up “significant pools” of capital to the Bitcoin market, halving and easing macro factors, coupled with leverage effects.
One area where the Bitcoin ETF differs from other Bitcoin investment products in the United States is that the shares are held by the issuer and its affiliates for a fixed amount of BTC.
“The Spot ETF is the most preferred fund option on the market today,” said Aydin Kilic, CEO of HIV Digital. Decrypt. “It opens up this asset class to professional investors and retail retirement accounts.”
One of the leading options in the stock market today is the Greyscale Bitcoin Trust (GBTC) has high fees and does not accurately track the value of Bitcoin.
Shares in the trust currently trade at a discount to the fund's underlying BTC holdings. As this discount continues to narrow over time, the fund's efforts to convert to the spot Bitcoin ETF will be successful and, if/when allowed, completely wiped out.
While some prefer to buy BTC directly and hold it privately, many retail investors may not feel comfortable buying the often unregulated coins from crypto-specific platforms. Additionally, as Iris Roberts explains, physical bitcoin investment is almost impossible for many large companies.“Both institutional investment obligations and general retail trading services often prohibit the investment of client capital outside of specific instruments and securities,” he said. “The EFF can solve this.”
After GBTC, some of these options include crypto exchange Coinbase (COIN. +120% YTD) and the futures-based ProShares Bitcoin Strategy ETF (BITO; +64% YTD). Beyond them, however, there are more than a dozen publicly traded miners that have performed well on Bitcoin – so far.
as if Podcast interview this weekJPMorgan Smith described Marton Digital and Riot Platforms—two of the largest Bitcoin mining companies—as indirect Bitcoin investments that could be smaller than ETFs.“It gives you a cleaner play on Bitcoin than buying Riot or Marathon,” he said. “With that kind of purchase, you're dealing with hashret, interruptions and things like that.”“It could also introduce a whole other set of arbitrage opportunities. It could be cheaper to buy bitcoins directly and indirectly through one of the miners,” he added. When asked about this volatility, Bitcoin mining company and pool operator Foundry Digital One acknowledged how the ETF could bring “reverse negative effects” to the industry. “Over the past few years, mining companies have been used as proxies to gain exposure to Bitcoin in the public markets,” said Alex Altman, CFA and Senior Manager of Corporate Development at Foundry. It will be interesting to see how these new ETF vehicles impact public miners, as investors will now have a more direct and cost-effective way to access the asset class.
