Cryptoverse: Miners trudge through post-halving world
ETFs) stealing investor capital, it's been a tough year for bitcoin miners.
Marathon Digital and Riot Platforms, among the biggest U.S.-listed miners, have dropped about 10% and 33% respectively so far this year, even as bitcoin has climbed 60% year-to-date to $67,859, after hitting a record level in March.
Mining stocks closely track bitcoin as a higher price boosts their profits margins.
However, market analysts said the launch of the 11 bitcoin ETFs at the start of this year prompted some investors to rotate out of mining stocks — earlier among the few stocks offering exposure to bitcoin — in favour of the ETFs that track the spot price.
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View Details» «There's been a lot of institutional money flow into the ETFs as opposed to using the miners as a proxy for exposure to bitcoin,» said Pascal St-Jean, president at the global digital asset investment manager 3iQ.
Power-hungry miners compete to solve complex mathematical puzzles to build the bitcoin blockchain and earn rewards in the form of new bitcoin.
Their rewards were halved in April to 3.26
