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Over the past year, crypto mining stocks have outperformed bitcoin (BTC, -3.15%) (BTC), and the trend has accelerated since the cryptocurrency climbed past $20,000 a few months ago, according to the financial research firm FundStrat. The dynamic might hold if bitcoin stays in a bull market, the firm predicts.

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  • “Bitcoin and the wider crypto market are the modern-age digital gold rush,” wrote FundStrat, which means crypto mining stocks could see further upside.
  • Because miners play such a critical role in ensuring the Bitcoin network functions properly, investors have sought opportunities to gain exposure to mining companies,” which generate revenue in the form of mined bitcoin.
  • The largest publicly listed mining companies include Riot Blockchain (NASDAQ: RIOT), Hive Blockchain (OTCMKTS: HVBTF), and Marathon Patent Group (NASDAQ: MARA).
  • As the bitcoin price increases, miners spin up new rigs or upgrade hardware in pursuit of higher block rewards. And FundStrat expects more-efficient mining machines will help some firms remain competitive, which could boost profit margins.
  • But buyer beware: “Mining company equities may serve as a high-beta play on bitcoin … [and when the cryptocurrency] enters a bear cycle, we would expect mining equities to have greater downside volatility than bitcoin,” according to FundStrat.
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Over the past year, crypto mining stocks have outperformed bitcoin (BTC, +0.11%) (BTC), and the trend has accelerated since the cryptocurrency climbed past $20,000 a few months ago, according to the financial research firm FundStrat. The dynamic might hold if bitcoin stays in a bull market, the firm predicts.

0
  • “Bitcoin and the wider crypto market are the modern-age digital gold rush,” wrote FundStrat, which means crypto mining stocks could see further upside.
  • Because miners play such a critical role in ensuring the Bitcoin network functions properly, investors have sought opportunities to gain exposure to mining companies,” which generate revenue in the form of mined bitcoin.
  • The largest publicly listed mining companies include Riot Blockchain (NASDAQ: RIOT), Hive Blockchain (OTCMKTS: HVBTF), and Marathon Patent Group (NASDAQ: MARA).
  • As the bitcoin price increases, miners spin up new rigs or upgrade hardware in pursuit of higher block rewards. And FundStrat expects more-efficient mining machines will help some firms remain competitive, which could boost profit margins.
  • But buyer beware: “Mining company equities may serve as a high-beta play on bitcoin … [and when the cryptocurrency] enters a bear cycle, we would expect mining equities to have greater downside volatility than bitcoin,” according to FundStrat.
Read More

The Grayscale Bitcoin Trust could “morph into a systemic risk,” according to a report from crypto markets data company ByteTree.

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In the report, ByteTree Chief Investment Officer Charlie Morris wrote that 81% of institutional inflows to bitcoin (BTC, -0.63%) have come via GBTC. (Grayscale is owned by CoinDesk parent company Digital Currency Group).

From alternatives like Osprey’s bitcoin fund to Bitwise’s cryptocurrency index to Canadian bitcoin exchange-traded funds (ETFs), investors now have more choices for hassle-free bitcoin exposure. The once-sizable premium over the price of bitcoin for GBTC has flipped to a discount, reflecting a drop in demand for the vehicle.

With GBTC offering no premium, institutional inflows will likely slow further, which means GBTC won’t buy more BTC which would remove a support for the market, ByteTree said.

“With luck, this is a GBTC problem and does not spread,” Morris wrote. “Exchange Traded Funds solve this problem. With many applications filed, I imagine they will come to market sooner or later. Like the European ETPs, they will trade at NAV, which is what investors want. Their fees will be lower, and all in all, it will be a more attractive package. When they come, the only reason investors will stay in GBTC is capital gains tax.”

ByteTree says that Digital Currency Group’s pledge to purchase up to $250 million in GBTC shares is not enough to keep the discount from falling further. 

“To be taken seriously, they need to pledge to buy back that quantity each week,” Morris wrote. Grayscale could convert GBTC into an ETF or apply for an ETF that isn’t linked to the fund. This past week, New York-based Simplify Exchange Traded Funds proposed an ETF that would invest in the Grayscale Bitcoin Trust.

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Brazil has become the second country in the Americas to approve a bitcoin (BTC, -0.2%) exchange-traded fund (ETF) following the three launched in Canada this year.

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  • The Brazil Securities and Exchange Commission (CVM) has approved blockchain investment firm QR Capital’s bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
  • The fund will trade under the ticker QBTC11, QR capital tweeted Friday.
  • The QBTC11 will have as reference the CME Group index of bitcoin futures contracts, QR said.
  • Reuters reported Friday the ETF listing will take place by June.
  • This will be the fourth ETF of its kind following the three funds that launched on the Toronto Stock Exchange (TSX) in February and March.
  • The first of these, launched by Purpose Investments, saw inflows of $564 million in its first two days. (Purpose’s ETF uses index information from TradeBlock, a CoinDesk subsidiary.)
  • The U.S. Securities and Exchanges Commission (SEC) yesterday acknowledged VanEck’s application to launch a bitcoin ETF, which, if approved, would be the first of its kind in the U.S.

See also: Valkyrie Files for an ETF That Would Invest in Firms With Bitcoin on Their Balance Sheets

Read More

Brazil has become the second country in the Americas to approve a bitcoin (BTC, -0.63%) exchange-traded fund (ETF) following the three launched in Canada this year.

0
  • The Brazil Securities and Exchange Commission (CVM) has approved blockchain investment firm QR Capital’s bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
  • The fund will trade under the ticker QBTC11, QR capital tweeted Friday.
  • The QBTC11 will have as reference the CME Group index of bitcoin futures contracts, QR said.
  • Reuters reported Friday the ETF listing will take place by June.
  • This will be the fourth ETF of its kind following the three funds that launched on the Toronto Stock Exchange (TSX) in February and March.
  • The first of these, launched by Purpose Investments, saw inflows of $564 million in its first two days. (Purpose’s ETF uses index information from TradeBlock, a CoinDesk subsidiary.)
  • The U.S. Securities and Exchanges Commission (SEC) yesterday acknowledged VanEck’s application to launch a bitcoin ETF, which, if approved, would be the first of its kind in the U.S.

See also: Valkyrie Files for an ETF That Would Invest in Firms With Bitcoin on Their Balance Sheets

Read More

Brazil has become the second country in the Americas to approve a bitcoin (BTC, -1.55%) exchange-traded fund (ETF) following the three launched in Canada this year.

0
  • The Brazil Securities and Exchange Commission (CVM) has approved blockchain investment firm QR Capital’s bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
  • The fund will trade under the ticker QBTC11, QR capital tweeted Friday.
  • The QBTC11 will have as reference the CME Group index of bitcoin futures contracts, QR said.
  • Reuters reported Friday the ETF listing will take place by June.
  • This will be the fourth ETF of its kind following the three funds that launched on the Toronto Stock Exchange (TSX) in February and March.
  • The first of these, launched by Purpose Investments, saw inflows of $564 million in its first two days. (Purpose’s ETF uses index information from TradeBlock, a CoinDesk subsidiary.)
  • The U.S. Securities and Exchanges Commission (SEC) yesterday acknowledged VanEck’s application to launch a bitcoin ETF, which, if approved, would be the first of its kind in the U.S.

See also: Valkyrie Files for an ETF That Would Invest in Firms With Bitcoin on Their Balance Sheets

Read More

Brazil has become the second country in the Americas to approve a bitcoin (BTC, -1.11%) exchange-traded fund (ETF) following the three launched in Canada this year.

0
  • The Brazil Securities and Exchange Commission (CVM) has approved blockchain investment firm QR Capital’s bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
  • The fund will trade under the ticker QBTC11, QR capital tweeted Friday.
  • The QBTC11 will have as reference the CME Group index of bitcoin futures contracts, QR said.
  • Reuters reported Friday the ETF listing will take place by June.
  • This will be the fourth ETF of its kind following the three funds that launched on the Toronto Stock Exchange (TSX) in February and March.
  • The first of these, launched by Purpose Investments, saw inflows of $564 million in its first two days. (Purpose’s ETF uses index information from TradeBlock, a CoinDesk subsidiary.)
  • The U.S. Securities and Exchanges Commission (SEC) yesterday acknowledged VanEck’s application to launch a bitcoin ETF, which, if approved, would be the first of its kind in the U.S.

See also: Valkyrie Files for an ETF That Would Invest in Firms With Bitcoin on Their Balance Sheets

Read More

Brazil has become the second country in the Americas to approve a bitcoin (BTC, +0.71%) exchange-traded fund (ETF) following the three launched in Canada this year.

0
  • The Brazil Securities and Exchange Commission (CVM) has approved blockchain investment firm QR Capital’s bitcoin ETF which will trade on the Sao Paulo-based B3 exchange.
  • The fund will trade under the ticker QBTC11, QR capital tweeted Friday.
  • The QBTC11 will have as reference the CME Group index of bitcoin futures contracts, QR said.
  • Reuters reported Friday the ETF listing will take place by June.
  • This will be the fourth ETF of its kind following the three funds that launched on the Toronto Stock Exchange (TSX) in February and March.
  • The first of these, launched by Purpose Investments, saw inflows of $564 million in its first two days. (Purpose’s ETF uses index information from TradeBlock, a CoinDesk subsidiary.)
  • The U.S. Securities and Exchanges Commission (SEC) yesterday acknowledged VanEck’s application to launch a bitcoin ETF, which, if approved, would be the first of its kind in the U.S.

See also: Valkyrie Files for an ETF That Would Invest in Firms With Bitcoin on Their Balance Sheets

Read More

Traders are getting used to bitcoin (BTC) buying that is concentrated during European hours, with North America lagging behind, and Asia inviting more sellers. And yesterday’s Asia trading session was no exception.

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“Overnight, the Bank of Japan announced that they would reduce asset purchases in a move that signaled marginal tightening of policy. By the time European markets opened, they digested this news and immediately went into defensive move…[which also] put a damper on the strong price action in BTC,” wrote Chad Steinglass, head of trading at CrossTower, a digital asset trading firm.

  • The BoJ is considering ditching its 6 trillion yen purchase target of buying exchange traded funds (ETFs), as reported by Bloomberg. The ETF purchase program is expected to only be used in times of market turmoil, which could be interpreted as marginal tightening.
  • And the quick risk-off reaction to the BoJ news during Asian and European hours is not unusual.
  • It’s not uncommon for Europeans to be more skittish than others. Since Lunar New Year, Asian markets have been relatively weak, Steinglass told CoinDesk in a phone interview.
  • Crypto will trade with risk [assets] intraday. Over the last few weeks, bitcoin has been affected by rocky markets, but has been resilient, which is encouraging.

The recent bounce above $58K is consistent with rising price floors in BTC as the long-term trend remains intact. “Every time we break into a new range, old resistance becomes support – consistently over the last several months,” said Steinglass.

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Large bitcoin (BTC, +7.22%) investors have been selling some of their holdings amid this year’s price rally, blockchain data shows, supporting recent signs retail buying has been a key factor in supporting the market.

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Sometimes referred to as bitcoin’s “rich list,” the number of unique addresses holding more than 1,000 BTC has shrunk by over 8% since Feb. 8, according to the data provider Glassnode.

“Whale addresses have been selling,” market analyst Lark Davis tweeted. “This does not mean the bull run is over. It just means that profit taking is happening.”

On Wednesday, 2,275 addresses held at least 1,000 bitcoins, down more than 200 from Feb. 8’s record high of 2,488.

A single person or exchange can hold multiple addresses, leaving some doubt in the numbers. It’s possible the rise or fall in the number of addresses containing at least 1,000 coins does not necessarily represent an equivalent influx or outflux of large investors.

But a weakening of buying pressure from large investors would be consistent with other recent market indicators, including a decline in the so-called “Coinbase premium,” which theoretically indicates flagging institutional demand.

Bitcoin, however, has remained bid over the past 5.5 weeks, clocking new highs above $60,000, possibly on the back of increased retail participation.

Also read: Bitcoin Price Gets Fed Boost, but Bond Yields Could Play Spoilsport: Analysts

“The price since early January was predominantly retail, a fact highlighted by the [five times] more sign-ups on Binance compared to Coinbase,” Glassnode’s Uncharted newsletter, dated Feb. 27, said. Coinbase’s Coinbase Pro unit caters to larger, more sophisticated traders such as institutions and rich individuals.

The rich list grew during the May 2020-February 2021 period as whales vigorously accumulated the cryptocurrency.

Read More

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