🤔 This week: TSLA Q3 earnings report - is now the right time to buy the EV giant?Explore TSLA Data

“ETFs Like Blackrock” Are Responsible for BTC Mining Hash Rate Surge: Expert

Published 11/28/2023, 08:16 PM
Updated 11/28/2023, 08:45 PM
© Reuters.  “ETFs Like Blackrock” Are Responsible for BTC Mining Hash Rate Surge: Expert

  • The founder of the Bitcoin S2F model claimed “ETFs like BlackRock” are adopting a front-loading strategy for BTC acquisition.
  • The founder argued that institutional investors acquire BTC indirectly from miners rather than through exchanges.
  • The turnout has supposedly led Bitcoin’s mining difficulty to an all-time high.

Recently, the creator of the Bitcoin Stock-to-Flow (S2F) model, known by the X username “PlanB,” shared insights into Bitcoin’s surging mining hash rate, arguing the involvement of significant asset managers like BlackRock.

According to PlanB, financial institutions seeking Bitcoin exchange-traded funds (ETFs), such as BlackRock, are adopting a front-loading acquisition strategy. He claimed these institutional investors opt to accumulate BTC indirectly through miners instead of purchasing the crypto directly on exchanges.

PlanB argued that acquiring Bitcoin directly on exchanges could significantly impact its price. On the other hand, he noted that buying it indirectly from miners affects the mining hash rate more than the price. According to PlanB, this could explain the recent Bitcoin network hash rate surge.

The post “ETFs Like Blackrock” Are Responsible for BTC Mining Hash Rate Surge: Expert appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.