Bitcoin mining profitability expected higher as spot ETFs approved

Bitcoin mining profitability is set to increase amid higher demand because bitcoin ETFs have been approved, market participants said.

The US SEC approved Bitcoin Spot ETFs Jan. 10 after a long-awaited decision by the wide Bitcoin community, with the bitcoin ETFs trading set to begin Jan. 11 on Cboe, NASDAQ and NYSE.

"This means that the door is being opened to many new institutional investors through instruments they are already familiar with and know how to handle" Kjetil Pettersen, CEO at KryptoVault said.

Pettersen said issuers of Bitcoin ETFs will need to hold the underlying asset, meaning demand for Bitcoin will increase amid bitcoin set supply at 21 million.

"This means the price will go up, thereby increasing the profitability for miners as well", Pettersen said.

Bitcoin Renewable Quarq Spreads Index, the profitability index for bitcoin miners published by Platts shows Norway NO4 profitability at $79.35/MWh for Jan. 10, with the day-ahead power price in the region registered at Eur26.95/MWh. Platts assessed Nordic Hydro Guarantee of Origin certificate current vintage at Eur3.83/MWh Jan. 10.

In the US, the Platts index for Into GTC showed a bitcoin mining profitability of $80/MWh, and $87.69/MWh for Texas ERCOT North hub Jan. 10.

Platts, as part of S&P Global Commodity Insights, Bitcoin Energy Consumption index increased to 405.99 MWh on Jan. 10, just below the all-time high 429 MWh Jan. 5.

Platts Bitcoin Renewable Quarq Spreads Index accounts for bitcoin mining profitability across 42 locations in Europe and the US.