NEW DELHI: Bitcoin mining is expected to experience a significant boost in profitability following the approval of Bitcoin Spot ETFs by the US Securities and Exchange Commission (SEC) on January 10.
According to S&P Global Commodity Insights, the long-awaited decision has created a ripple effect in the Bitcoin community, with trading of these ETFs set to begin on January 11 on major platforms such as Cboe, NASDAQ and NYSE.
The approval of Bitcoin Spot ETFs is considered a crucial development that opens the door for many new institutional investors, providing them with familiar and well-established investment tools.
Kjetil Pettersen, CEO at KryptoVault, emphasized that the issuers of Bitcoin ETFs will have to hold the underlying asset, leading to an expected increase in demand for Bitcoin.
As Bitcoin’s supply is capped at 21 million, the increased demand is expected to drive up its price, improving profitability for miners.
“This means the price will increase, thereby increasing profitability for miners as well,” Pettersen explained, highlighting the potential positive impact on Bitcoin mining economics.
The Bitcoin Renewable Quarq Spreads Index, a profitability indicator for Bitcoin miners published by Platts, reflects the optimistic sentiment.
According to Platts, Norway’s NO4 profitability stood at USD 79.35/MWh on January 10, while the day-ahead power price in the region was registered at Eur26.95/MWh.
The Nordic Hydro Guarantee of Origin certificate’s current vintage was assessed at Eur3.83/MWh on the same day.
In the US, the Platts index for Into GTC indicated a Bitcoin mining profitability of USD 80/MWh, and USD 87.69/MWh for the Texas ERCOT North hub on January 10.
These figures underscore the potential for increased profitability in Bitcoin mining operations. The Bitcoin Energy Consumption Index, also managed by Platts as part of S&P Global Commodity Insights, showed a reading of 405.99 MWh on January 10.
Although slightly below the peak of 429 MWh recorded on January 5, this index indicates a significant level of energy consumption related to Bitcoin mining activities.
The Platts Bitcoin Renewable Quarq Spreads Index provides a comprehensive overview of Bitcoin mining profitability across 42 locations in Europe and the US.
As the market eagerly awaits the start of Bitcoin Spot ETF trading, miners and investors anticipate a new era of increased demand and improved profitability in the Bitcoin mining landscape.
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NEW DELHI: Bitcoin mining is expected to see a significant boost in profitability following the approval of Bitcoin Spot ETFs by the US Securities and Exchange Commission (SEC) on January 10. According to S&P Global Commodity Insights, the long-awaited decision has a ripple effect in the Bitcoin community, with trading of these ETFs set to begin on January 11 on major platforms such as Cboe, NASDAQ and NYSE. The approval of Bitcoin Spot ETFs is considered a pivotal development that opens the door for many new institutional investors, providing them with familiar and well-established investment tools.googletag.cmd.push(function() {googletag.display(‘div- gpt) -ad-8052921-2’); }); Kjetil Pettersen, CEO at KryptoVault, emphasized that the issuers of Bitcoin ETFs will have to hold the underlying asset, leading to an expected increase in demand for Bitcoin. As Bitcoin’s supply is capped at 21 million, the increased demand is expected to drive up its price, improving profitability for miners. “This means the price will increase, thereby increasing profitability for miners as well,” Pettersen explained, highlighting the potential positive impact on Bitcoin mining economics. The Bitcoin Renewable Quarq Spreads Index, a profitability indicator for Bitcoin miners published by Platts, reflects the optimistic sentiment. According to Platts, Norway’s NO4 profitability stood at USD 79.35/MWh on January 10, while the day-ahead power price in the region was registered at Eur26.95/MWh. The Nordic Hydro Guarantee of Origin certificate’s current vintage was assessed at Eur3.83/MWh on the same day. In the US, the Platts index for Into GTC indicated a Bitcoin mining profitability of USD 80/MWh, and USD 87.69/MWh for the Texas ERCOT North hub on January 10. These figures underscore the potential for increased profitability in Bitcoin mining operations. The Bitcoin Energy Consumption Index, also managed by Platts as part of S&P Global Commodity Insights, showed a reading of 405.99 MWh on January 10. of energy consumption related to Bitcoin mining activities. The Platts Bitcoin Renewable Quarq Spreads Index provides a comprehensive overview of Bitcoin mining profitability across 42 locations in Europe and the US. As the market eagerly awaits the start of Bitcoin Spot ETF trading, miners and investors anticipate a new era of increased demand and improved profitability in the Bitcoin mining landscape. Follow The New Indian Express channel on WhatsApp
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