BTC Miners Generated Nearly $692M Revenue in December

January 11, 2021


Bitcoin miners generated almost $692 million of revenue in December 2020, up by 33% from November, as indicated by on-chain information from Coin Metrics analyzed by CoinDesk. Extending November’s own 48% increase, miner revenues kept on taking off as bitcoin revitalized over 300% a year ago, momentarily exchanging above $29,000 unexpectedly on New Year’s Eve. 


While a bitcoin exchange-traded fund or ETF would be a drawn-out sure, in the transient it could hurt the cost of the main digital currency as it would draw institutional cash from the Grayscale Bitcoin Trust (GBTC), right now, the lone path for some on Wall Street to acquire exposure to bitcoin, JPMorgan analysts wrote in a report. 


Positivity over the U.S. Securities and Exchange Commission endorsing a bitcoin ETF this year has grown because of the probability of another chief being selected for the current year, the report states. In any case, that change would offer competition to GBTC, which profits by being the solitary game around. 


Because of administrative and different limitations, some monetary foundations and assets can’t straightforwardly own bitcoin or even purchase shares directly from Grayscale. The JPMorgan investigators estimate the GBTC premium adaptation exchange could represent around 15% of extraordinary GBTC stock. 


A contracting GBTC premium would likewise reduce the appeal of a well-known exchange, the analysts composed. At the present time, some institutional speculators purchase GBTC at net resource value with the expectation of selling after the required half-year lockup period terminates to gain by that premium. 


The possibility of a bitcoin ETF and the subsequent decreasing GBTC premium could likewise lead some institutional speculators who purchased in the second half of a year ago to sell when their half-year lock-up terminates, further putting downward pressure on GBTC expenses, the analysts composed.



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