Investment funds circulating in the field of bitcoin under pressure, where profits decline – Global x Blockchain & Bitcoin

The latest monthly report of the Bitcoin Jpmorgan mining process reveals some of the challenges it faces Current currency mining sectorExciting concerns for Bitcoin Mining Investment Funds.

February saw the price of bitcoin by 5 % by an average of 95300 dollars, with an additional decrease to 89,700 dollars by the end of the month. This represents a decrease of 13 % from January.

This recession had a direct impact on mining companies, as the total maximum market decreased from 14 mines listed in the United States by 22 %, erasing $ 6 billion. Since these shares have declined, the circulating investment funds are highly likely in bitcoin miners, such as Valkyrie Bitcoin Miners Etf Wgmiand BitWise Etf innovations innovations BitqAnd Global Strategy X Blockchain and Bitcoin Etf partsI probably faced large clouds.

WGMI lost more than 20 % last month while BitQ lost about 17 % during the same period. Meanwhile, thanks to a large allocation in short -term cabinet bills, BITS managed to alleviate its monthly decline to about 2 %.

Also read: Analysts doubt

Employment mining and ETF risk

Besides low prices, the weakest mining economics, which can press ETF returns. Daily mass bonus revenues for each Exhash (EH/S) decreased by 5 % monthly month (M/M) to 54,300 dollars, while the total daily profit profit decreased by 9 % to $ 29,500 per EH/s, monthly month, which is about 54 %. This pressure affects the public budgets of public mining companies, many of which are essential possessions in the investment funds circulating in Bitcoin.

Despite the decrease in revenue, the competition between mines remained intense, found Jpmorgan. The average division of the network increased by 3 % to 810 EH/S, which reflects a higher mining participation despite the decrease in profit margins. The mining difficulty increased by 2 % of January, although it was reduced later in the month.

However, for circulating investment funds, the main anxiety is whether it is higher than signal strength or financial stress, miners may be forced to expand operations just to maintain revenue levels. This may increase energy costs and potential liquidity issues.

Also read: Eric Trump says Bitcoin’s strategic timing, XRP, Cardano’s reserve advertisement was a “victory” for retailers

Performs of stocks and exposure ETF

The total maximum market market of miners who followed $ 14.1 billion, a decrease of 22 % from January, according to Jpmorgan. Among the individual stocks, Core Scientific was the best performance, as it decreased by only 9 %, while Gildej Jenidge agglutinate 36 % decreased, making it the worst performance. Among the other prominent declines Riot control platforms Riot and Digital marathon Mara A decrease of 19 % and 23 %, respectively. By the way, the last two shares constitute a large part of several investment funds circulating in the field of mining.

If mining shares continue to trade at depression levels, the investment funds circulating in Bitcoin mining may suffer from twice as much as more weak, especially if the price of bitcoin remains under pressure.

Possible opportunities for the manufacture of traded investment funds

While the recession in February raises red flags, some investors may view the investment funds circulating in Bitcoin as a long -term opportunity at current evaluation levels. Historically, mining shares tend to link bitcoin price movements, which means that any recovery in Bitcoin in the future can enhance these shares and the related investment funds associated with them. In addition, the last sales of ETF investors may allow the assembly of positions in the growing miners by discount before the next ups.

However, the risks remain. Many miners depend on the high bitcoin prices for profitable survival, and with the presence of revenues and total profits with a much lower levels of the pre -half levels, smaller players who suffer from high energy costs can fight, which increases ETF performance if these companies drop.

Read the following:

Photo: Shutterstock