Bitcoin Mining Revenue Surges to New Yearly High
Bitcoin mining revenue has reached a new yearly high, as the cryptocurrency’s price soared amid growing excitement about the potential approval of a U.S. spot Bitcoin ETF by the SEC. According to data from Blockchain.com, BTC mining revenue hit $42,386,514.038 on November 9, surpassing its previous yearly high of $41,744,197.067 set on May 8, 2023.
This surge in mining revenue coincided with BTC’s price rising to over $37,000 on November 9, driven by increasing anticipation of the possible approval of a U.S. spot Bitcoin ETF by the Securities and Exchange Commission (SEC). The current price of BTC stands at just over $37,200, marking a 7.5% increase for the week.
BTC Mining Revenue in 2023
During the Ordinals craze in May, miner revenues spiked to $40 million per day despite BTC’s price at the time being much lower at $27,000. Ordinals inscriptions are similar to NFTs and allow digital assets to be inscribed on the Bitcoin blockchain.
The SEC and Bitcoin ETFs
The recent surge in Bitcoin’s price is fueled by optimism regarding the potential approval of a Bitcoin ETF by the SEC. The expiration of deadlines for rebuttal comments on pending ETF applications has created a brief window during which 12 applications for a Bitcoin ETF could be approved simultaneously.
Furthermore, reports have emerged indicating that digital asset manager Grayscale has been in discussions with the SEC about its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. This follows an order issued by the U.S. Court of Appeals for the SEC to review Grayscale’s application after describing the SEC’s actions as “arbitrary and capricious.”
The SEC has previously rejected every application for a spot Bitcoin ETF. Approval of a U.S. spot Bitcoin ETF is considered a significant milestone for institutional acceptance of cryptocurrency as it would enable investors to access the cryptocurrency market without managing the risk of holding the asset themselves.
Hot Take: Potential Impact of a Spot Bitcoin ETF Approval
If approved, a U.S. spot Bitcoin ETF could significantly impact institutional acceptance of cryptocurrency investment opportunities and create new avenues for investors to gain exposure to the cryptocurrency market without directly holding digital assets.
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