BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Bitcoin’s Upcoming ETF is Making Miners Nervous, and Here’s Why

by BlockNews.com Team
October 31, 2023
in Breaking News, Business, Crypto
A A
Bitcoin’s Upcoming ETF is Making Miners Nervous, and Here’s Why
1
SHARES
Share on TwitterShare on Reddit
  • The launch of the first US Bitcoin ETF could divert capital away from mining stocks, even though mining stocks have outperformed Bitcoin this year by acting as leverage plays.
  • Mining stocks may see reduced demand as investors switch to a direct Bitcoin ETF instead of using miners as a proxy.
  • However, miners remain confident in Bitcoin’s long-term prospects, expecting continued price appreciation and more investors from the ETF.

The upcoming launch of the first US spot Bitcoin exchange-traded fund (ETF) has generated excitement within the crypto industry. While Bitcoin miners also seem optimistic, the ETF could divert capital away from mining stocks.

Mining Stocks Have Outperformed Bitcoin

Public mining stocks have averaged even stronger returns than Bitcoin this year. These regulated companies have acted as leverage plays on BTC in the absence of an ETF. For example, Grayscale Bitcoin Trust shares are up 196% in 2021.

ETFs May Draw Investors Away from Miners

Though promising for Bitcoin, ETFs may reduce demand for mining stocks that investors currently treat as the next best thing. Mining revenue stems from Bitcoin rewards, so a rising BTC price boosts miners. However, investors may now prefer a direct Bitcoin ETF over mining proxies.

Miners Remain Bullish on Bitcoin’s Prospects

Miners like CleanSpark and Iris Energy have invested heavily in equipment ahead of the upcoming halving. They expect continued Bitcoin price appreciation. An ETF may also open the asset class to more investors. But it could produce counterintuitive effects for miners if investors switch from stocks.

Retail Investors May Prefer an ETF’s Simplicity

Many retail investors are uncomfortable buying coins directly from crypto platforms. An ETF provides a regulated way to gain exposure. After the high-fee Grayscale fund, options like Coinbase and futures ETFs have downsides compared to a spot ETF.

Conclusion

While the first Bitcoin ETF should boost Bitcoin, it creates uncertainty for related mining stocks. Investors may abandon these proxies when offered a superior product. However, miners remain confident in Bitcoin’s long-term trajectory.

Tags: BitcoinBitcoin ETFCleanSparkcryptoGrayscakeIris Energy
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next
Crypto

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

May 8, 2025
Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement
Crypto

Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

May 8, 2025
Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do
Crypto

Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do

May 8, 2025
$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?
Crypto

$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?

May 8, 2025
Cardano ADA On the Verge of a Major Comeback: Here are the Key Levels to Watch
Cardano

Cardano ADA On the Verge of a Major Comeback: Here are the Key Levels to Watch

May 8, 2025
$LINK on the Move: Is Chainlink About to Shake Off the Bears?
Chainlink

$LINK on the Move: Is Chainlink About to Shake Off the Bears?

May 8, 2025
Load More

Related News

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

Ethereum ETH Hits Biggest Single Day Gain Since May 2024: Here is Why $3K is Next

May 8, 2025
Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

Analysts Predict MOG Coin Could 4x as mog/acc Trend Gains Momentum With Elon Musk Endorsement

May 8, 2025
Trump Say Upcoming U.S.-China Trade Negotiations May Lower 145% Tariffs: Here is Why

Trump Say Upcoming U.S.-China Trade Negotiations May Lower 145% Tariffs: Here is Why

May 8, 2025
Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do

Stellar XLM Technical Indicators Suggest Imminent Breakout: Here is What You Need to Do

May 8, 2025
$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?

$LTC in a Limbo: Is Litecoin Quietly Gearing Up for a Breakout?

May 8, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Newsletter
  • Advertise
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX Gary Gensler grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.